NB Power is seeking a rate hike of two per cent for all of its customers next April 1.
The utility filed its application with the Energy and Utilities Board (NBEUB) this past week.
“This increase will allow NB Power to better service its debt obligations … to fund required capital expenditures, to help offset inherent variability in earnings, and continue to build equity in the future in pursuit of the equity target of 20 per cent,” the utility wrote in its application.
The increase is based on required revenue of $1.8 billion and includes net earnings of $40.9 million.
It also takes into account the province’s proposed carbon pricing plan, which NB Power said would cost around $65 million over 10 years.
If the plan is not accepted, NB Power may be subject to the federal [plan] and higher carbon costs,” said the utility. It estimated the carbon costs under the federal plan would total $380 million over 10 years.
The rate request comes just over two months after the NBEUB approved a 2.48 per cent increase for all customers.
At the time, the board said NB Power would have to file its next rate application by early October so it can make a decision by April 1.
A five-day hearing on the proposed rate increase is set for next February.
