Government's rate mitigation plan will put a cap on what electricity customers pay for Muskrat Falls

    Friday, 17 May 2024 07:00

    By Tonya Organ

    This means on an average monthly bill of $300, customers will pay $307 a month in July compared to $500 a month without the rate mitigation plan. 

    Government as announced the finalization of the rate mitigation plan with Newfoundland and Labrador Hydro (NL Hydro). This plan applies only to island customers paying for the project. The plan will come into effect on July 1st. Domestic residential rate increases are capped at 2.25 per cent annually for cost recovery associated with the Muskrat Falls project. In July, 2021, government announced a $5.2 billion rate mitigation deal with the Federal Government, and without it, NL Hydro’s rates would have almost doubled (to 23.6 cents per kWh) as a result of the Muskrat Falls project. This means on an average monthly bill of $300, customers will pay $307 a month in July compared to $500 a month without the rate mitigation plan. 

     

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