PlanetNL12: 18 c/KWh – Warning – Not Exactly as AdvertisedThe last day of NL Hydro witness testimony at the General Rate Application hearings at the Public Utilities Board revealed a cruel and regressive plot twist.
A senior NL Hydro manager on the witness stand indicated that Government’s post-Muskrat mitigated rate target of 18 c/KWh was merely an average figure. He said Hydro was already considering a rate design scheme that would be presented to the PUB in the coming months based on two-tier declining rates. In other words, the first part of energy used will cost more than 18 c/KWh but the rest will be priced lower. When all residential users are added up together, the increase will average out to a 55% over today’s rate.
We won’t know Hydro’s exact details for a while, but a model is presented here that plainly shows not everyone will be hit equally. A substantial number will be hit hard while a small number barely take a hit at all.