What to expect if you're expecting a power rebate in February
Estates of deceased customers or those who moved may take longer to get money
A spokesperson with Newfoundland Power says the majority of customers on the island will automatically receive Rate Stabilization Plan (RSP) refunds starting Feb. 15, but roughly 2,000 are more complicated.
"There may be some documentation [required] if a customer has passed away since the account was active during that refund period," of Jan. 1, 2007 to Aug. 31, 2013, said Michele Coughlan, manager of public affairs.
"To qualify you would have to use and pay for electricity during that refund period," she said.
"As of Feb. 10 the refund will first be applied against any balance on the customer's account, and any remaining rebate will be issued in the form of a cheque."
Coughlan said as the RSP refund is based on usage during the 2007 to 2013 timeframe, customers will receive different amounts.
Current customers of Newfoundland Power and Newfoundland and Labrador Hydro won't have to apply.
She said that represents roughly 200,000 or 85 per cent of customers, but there are roughly 2,000 customers who have moved or died, and are no longer current customers.
Slower process for some
If someone has died, Coughlan said Newfoundland Power will need documentation to verify the name the estate is in, or a will, so the process for those refunds will take a little bit longer.
She told the St. John's Morning Show Friday the cost of processing the refunds is approximately $2.5 million, which will be recoverable.
"Mostly for customer service-related things" like verifying the accuracy of information, having staff available to answer questions from customers, and one-time self-service tools to help customers as well.
Roughly $138 million plus $16 million in taxes, so $154 million total, will be going back to power customers through the rate stabilization fund, which was meant to average out the impact of prices and the cost of oil used to generate electricity at Holyrood
Coughlan said rates are adjusted for that every year around July 1, but a surplus built up in NL Hydro's RSP due to a reduction in the amount of electricty used by some industrial customers, mainly due to closures in the pulp and paper industry.
NL Hydro customers in Labrador are not eligible for a refund as they did not pay into the RSP.
With files from the St. John's Morning Show