Maritime Electric applies for rate increases

Maritime Electric has applied for a series of increases that would push rates for residential customers up more than four per cent over a three-year period.

In an application filed with the Island Regulatory and Appeals Commission, the company is seeking approval for rate increases to kick in March 1 over each of the next three years.

For residential rates the increases would be:

• Mar. 1, 2019: 1.3 per cent.

• Mar. 1, 2020: 1.4 per cent.

• Mar. 1, 2021: 1.4 per cent.

For what Maritime Electric says is a "typical" residential customer using 650 kilowatt hours per month, the increase would amount to about $4 each month over the course of the three years.

Costs to increase more for some

Maritime Electric is also asking for billing changes that would make it more difficult for homeowners who use more energy for example, those who use electric heat, or farms, which are also considered residential customers to qualify for discounts.

Under the current rate structure, homeowners who use more than 2,000 kilowatt hours in a month receive a discount of about 20 per cent on everything above that threshold by paying a lower rate for what's called "second block" usage.

Maritime Electric is asking IRAC to more than double that threshold, meaning that by 2021 the discount wouldn't kick in for homeowners or farmers until they used 5,000 kilowatt hours of electricity in a month.

No more rural/urban split

In a move that will save money for someresidential customers, Maritime Electric is also applying to get rid of the distinction between rural and urban customers for billing purposes.

Currently rural customers pay an extra $2.35 per month on the service charge portion of their bill. The utility is proposing to get rid of that, dropping all service charges down to the current rate for urban customers, a move that would benefit 42,000 households.

Most of the electricity distributed by Maritime Electric comes from NB Power. While there have been concerns carbon pricing could result in dramatic increases for NB Power customers, Maritime Electric says any costs associated with carbon pricing are included in its current rate application.

The company has signed a new five-year power purchase agreement with NB Power that runs from Mar. 1 2019 to Feb. 29, 2024. While details of the agreement haven't been released, Maritime Electric has previously said the deal factors in "the potential risk for costs associated with a carbon tax."

Cheryl Mosher, senior financial advisor at IRAC, said the commission was preparing to issue a formal notice of application which will set out how members of the public can ask questions or request information regarding the proposed rate changes.

Mosher said IRAC would review all submissions before any approval of the proposal is issued.

More P.E.I. news