The Provincial Government is spending an estimated $400,000 in 2009 to defer electricity rate increases for isolated diesel-powered communities on the island and Labrador coast for a third year in a row.

"As a government, we decided to continue to provide funding to offset electricity rate increases for customers in our isolated communities, who already pay the highest electricity rates in the province," said the Honourable Kathy Dunderdale, Minister of Natural Resources.

In past years, the Provincial Government has ensured stable electricity rates in isolated diesel-powered communities by providing similar funding. The province spent $400,000 to offset the planned rate increase for 2007 and another $400,000 to offset the increase in 2008.

This approach has given these customers some relief from electricity rate increases until Newfoundland and Labrador Hydro files its next general rate application.

"This is indeed welcome news to the people who live in coastal Labrador," said the Honourable John Hickey, Minister of Labrador Affairs. "This investment and other government spending, including the Northern Strategic Plan�s residential electricity rebate, will go a long way in combating high electricity prices for isolated communities in coastal Labrador and on the island."

"Government is committed to improving the lives of all Labradorians and this funding provides support to those people living in Labrador�s isolated coastal communities," said the Honourable Patty Pottle, Minister of Aboriginal Affairs. "Not only does this funding ensure access to affordable electricity, but it also makes a difference in energy costs for our isolated diesel-powered communities."

Newfoundland and Labrador Hydro, on behalf of the Provincial Government, is also conducting an alternative energy study and an energy efficiency community pilot project in some coastal Labrador communities to identify possible opportunities for greater energy efficiency and alternative electricity generation in an effort to reduce energy costs into the future.

"We remain focused on research and development, efficiency, conservation, and alternative energy sources to address the long-term energy needs of isolated communities both on the island and Labrador coast," said Minister Dunderdale. "We strive to develop our renewable energy resources through projects that support and improve our current interconnected and isolated electricity systems."

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