NB Power said March 30 it has received the the approval of the New Brunswick Energy and Utilities Board to implement an average 1.77% rate hike to all customer classes, effective April 1.
Based on a methodology approved by the board in May 2016, the residential class will see a rate increase of 2.07% and the general service I class will see a rate increase of 0.80%. The different rate increases will promote better fairness among the rate classes based on the cost to serve each customer class, according to the company.
NB Power will still have the lowest electricity rates in the Maritimes provinces and will continue to pay its debt and invest in outage prevention and reliability, the company said.
"Small and steady rate increases are part of our long term financial plan to ensure stable and predictable costs for our customers now and in the future," said Darren Murphy, CFO and vice president of corporate services at NB Power.
Revenue from the rate hike will allow the utility to build equity, pay its debt in advance of the costs associated with the future of the Mactaquac generating station and allow investments in the non-nuclear side of Point Lepreau generating station improving its performance and reliability.