Natural Resources
Labrador and Aboriginal Affairs
December 12, 2007

Province Providing Assistance to Maintain Rates in Diesel-Powered Communities

The Provincial Government will invest approximately $400,000 in 2008 to defer electricity rate increases for isolated diesel-powered communities on the island and Labrador coast. Newfoundland and Labrador Hydro had proposed the increases in its 2006 General Rate Application.

"This transition funding will allow families and businesses in these isolated communities to defer paying this increase while government, the communities and Hydro develop long-term energy solutions for these Hydro customers," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "As we highlighted in the Energy Plan, we are focusing on research and development, efficiency and conservation and alternative energy sources to address the long-term energy needs of our isolated communities."

At the request of the province, Hydro is now deferring the rate increase, which is primarily due to rising fuel costs, until 2009. The company filed its plan for isolated diesel rates with the Public Utilities Board on December 11.

Government also invested $400,000 in December 2006 to offset the planned increase for 2007 and pledged $200,000 to partially offset the increase in 2008. Today's announcement increases the 2008 amount to $400,000.

"People living on the coast of Labrador face unique energy challenges," said the Honourable John Hickey, Minister of Labrador Affairs. "This assistance provided by the Provincial Government will help offset electricity costs. Adding to the $1.6 million electricity rebate provided for in the Northern Strategic Plan for Labrador, the Provincial Government has made progressive and significant change where it counts − in people�s pocketbooks."

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Media contacts:

Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-1703
TracyBarron@gov.nl.ca
John Tompkins
Director of Communications
Department of Labrador and Aboriginal Affairs
709-729-1674, 728-7762
jtompkins@gov.nl.ca

2007 12 12                                                     9:15 a.m.


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