April 27, 2010
FREDERICTON (CNB) - NB Power gave notice today to the Energy and Utilities Board (EUB) of its intention to raise electricity rates by three per cent effective June 1.
This increase, announced April 9, will be applied to residential, commercial and industrial customers equally. It is not associated with the refurbishment of the Point Lepreau generating station.
"As announced on April 9, NB Power is taking aggressive measures to reduce costs," said Gaëtan Thomas, president and chief executive officer (acting), NB Power. "As a result of this cost-savings initiative, we plan to have a savings of approximately $20 million per year going forward. We want to assure our customers that we remain committed to aggressively finding ways to reduce operating costs, while continuing to provide New Brunswickers with safe and reliable electricity that our customers have come to expect."
At the same time as it implements this change, NB Power said, it will be able to meet its commitment to eliminate the declining residential block rate. The EUB has extended its deadline to eliminate this block rate to June from April. Eliminating this block rate will be revenue-neutral for NB Power.
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