PlanetNL26: Exposing Hydro’s Rural Deficit Account - Part 1
Very few Newfoundland Power (NP) customers know they will overpay their true cost of electricity this year by 12%. Labrador Interconnected System (LIS) customers will also overpay by 16%. Government has legislated the utilities to over-collect from these two sets of customers to subsidize high-cost rural and isolated regions. Hydro calls it the Rural Deficit account.
This hefty involuntary subsidy grows annually as Government-imposed rate-setting policies for the rural and isolated regions widen the cost gaps. NP customers especially, imminently threatened by severe rate increases arising from Muskrat Falls, are being counted upon by Government to pay a hefty price for Government policy goals. Government needs to be brought to task to overhaul the mechanics of the Rural Deficit and the rate-setting policies in rural and isolated areas before a penny of Muskrat costs is levied upon ratepayers.