Power rebate should only go to Newfoundland customers, advocate says

Newfoundland and Labrador's consumer advocate is arguing that most Labrador power customers shouldn't get a cut of more than $100-million rebate, because they weren't the ones who overpaid in the first place.

Customers in Newfoundland paid too much on power bills over a number of years.

Now, there's arguments in court over who should be included in the rebate.

The Public Utilities Board (PUB) wants to give the money back to consumers, but in their eyes that includes customers in Labrador.

However, Tom Johnson said the money should only go to the people who overpaid in the first place.

"It takes money from ratepayers who legitimately overpaid and whose rates were influenced by Holyrood and gives it to those who weren't, and we felt that was a problem," said Johnson.

Less fuel used

When the paper mill in Grand Falls-Windsor shut down production the province's demand for power dropped, meaning less fuel was being burned. 

Those savings have been in an account ever since.

The province told the PUB to give the money back to the ratepayers — and the board decided that included people in Labrador.

In total, there are around 280,000 customers in Newfoundland and Labrador, with $112 million waiting to be paid out.

The rebate would also apply to customers in coastal Labrador, whose payments are tied to rates used on the island. Labradorians who get their power from the interconnected system never overpaid.

On average, about $417 would be given back to ratepayers. But if Labrador customers are included, that number would be cut down to roughly $400.

Thursday in court, Johnson, Newfoundland and Labrador Hydro and Newfoundland Power all argued that a refund can't be given to customers who didn't pay the fees to start with.

"The money is gaining interest in the rate stabilization plan account and it's growing larger by the day because of it, so there won't be any detriment to the fact that it's taking some time to make sure that it's done properly and legally," said Johnson.

"But obviously I'm quite anxious for people to get those rebates and refunds into their hands as soon as possible."

A spokesperson with government told CBC News the PUB got it wrong when they included Labrador customers in the rebate, and the directive was that money should be returned to the people who paid in.

Three judges with the provincial Court of Appeal will decide where the money goes.