Public hearings begin on P.E.I. electricity rate hikes

Islanders gave their input to the Island Regulatory and Appeals Commission at a meeting about Maritime Electric's proposed rate increases Thursday night.

Maritime Electric applied for the increases last December hoping they would be approved and begin in March, but IRACsaid it needed more information from the electric utility

We all pay the same service charge, which is not fair to the little guy. John te Raa

The utility 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 calledsecond-block pricing.

About 15 people attended the public hearing, including John te Raa,who used to work in the energy sector.

"I brought up concerns with the residential rate structure and the discrepancies between the low energy users and the huge energy users," he said.

"We all pay the same service charge, which is not fair to the little guy."

A new proposed rate increase

Maritime Electric is proposing tokeep the increase under one per cent ayearover athree-year period, said utility spokesperson Kim Griffin.

Griffin said the utilityoriginally applied for a 3.3per cent rate increase over three years, but hasreduced that to 2.1 per cent.

"Originally we thought it was going to be around 1.1 per cent [per year]. We resubmitted our sales forecast and our financialsand we're able to project that it would be 0.7 per cent [per year]."

"We're trying not to have any rate shock," Griffinsaid.

Islanders weigh in

Te Raaalso said he'd like to seea lowerenergy ratefor residential customers on the Island.

"Have a reasonable rateand then if people start going with electric heat and it puts demand on the systemlet them pay extra," he said.

Margaret MacKayis retired and lives on a limited pension, and saidshe'd like to see second-block billing removedand if the rate increase is approved,for it to be reasonable.

"I think it's only fair that everybody should be treated the same on the increases," she said.

Presenting its case to IRAC over the last few days hasbeen "very intense," said Griffin."The whole process has been a bit over 5,000 pages of evidence and information that has been submitted to the commission."

The utility is aware of the issues customers like MacKayand te Raa are bringing forward, she said.

"Some people want it [second-block-billing] gone right away," Griffin said. "Our opinion is that we should do it over a number of years and that's what we've presented to the commission."

Customers have until Aug.14 to provide IRAC with written feedback.

IRAC has not said whenthe commission expects to announce a finaldecisionon the increases.

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