Maritime Electric seeks one-year rate increase

Maritime Electric, P.E.I.'s main electrical utility, is seeking a rate increase for 2022-23 to cover costs caused by shutdowns at the Point Lepreau nuclear plant last year.

The company has applied to Island Regulatory and Appeals Commision to make up the unexpected $5.5 million it had to spend on replacement power.

President and CEO Jason Roberts says Lepreau has been a reliable source for Maritime Electric, but 2021 turned out to be a difficult year, with three separate shutdowns.

"As any piece of equipment gets older there are challenges with performance and operation," said Roberts, adding he is not concerned about the future of the plant.

"I have confidence in the programs that New Brunswick Power has in place. Right now the unit is scheduled to remain in service until that 2035-40 timeline and I feel confident they are doing the work to ensure that it continues on that timeline."

The contract with New Brunswick Power is for the lifetime of the plant.

The requested increase is about two per cent for residential and small business customers, which would come about $2.60 a month for a typical residential customer. Increases for large industrial customers could be as high as 4.3 per cent.

The increase would apply from March of this year through February of 2023.

The utility is having an independent audit done on the submission, said Roberts, which it will submit to IRAC. Islanders are welcome to comment to IRAC on the application until Feb. 4 and can submit questions to Maritime Electric until Jan. 21.