The Consumer Advocate has assembled a team of experts to pore over Newfoundland Power’s general rate hike application which would increase rates by 7 per cent over the next year-and-a-half, but on the surface, he says the utility is doing quite nicely already with rates as they are.
The company has asked the Public Utilities Board to approve increases of 1.5 per cent next July and another 5.5 per cent the following July.
It says it needs extra money to ensure a fair rate of return for investors and to cover the cost of infrastructure.
Advocate Dennis Browne says there’s nothing wrong with their bottom line as it is.
In the quarter ending September 30, they made $2.5 million more than the previous quarter. “Why would they want to increase rates when they’re getting such a profit margin?” he asks.