Nalcor wants partial rate increase until PUB makes decision

Newfoundland and Labrador's Crown energy corporation is claiming losses, citing delays in getting a rate increase approved by the Public Utilities Board (PUB).

Nalcor CEO Ed Martin said the losses at Newfoundland and Labrador Hydro were over $27 million from January to September this year due to an increased cost to produce power.

Newfoundland and Labrador Hydro has gone to the PUB to ask for a rate increase for the first time since 2007, which would see prices increase from 12.6 cents per kilowatt an hour to 13 cents for about 246,000 customers.

Earlier this month, Newfoundland and Labrador Hydro cited aging assets and rising production costs as the reason for the rate increase request.

While the increase has yet to be approved by the PUB, Martin said Nalcor is seeking a partial increase in the interim.

"A lot of our cost base is fixed, whether it be interest costs, depreciation, those types of things, we know we have to have a certain amount of people," said Martin.

"We know certain costs there are generally fixed, and what we're suggesting and saying and asking for is in the interim, while we look at and review all these costs, we would like to get some interim rates to carry us through and make sure that we don't lose money in 2014."

Nalcor said if the increase is approved, it will have no immediate impact on rates.

The original request was first filed in July 2013.