Customers in Prince Edward Island (P.E.I.) could soon face higher electricity bills as Maritime Electric has requested a rate increase for a one-year period starting in March, pending approval from the Island Regulatory and Appeals Commission (IRAC). If the application is accepted, customers could see a seven percent rise in their bills, equating to an average increase of around $15 per month, while industrial customers may experience up to double the impact.
The proposed changes are scheduled to come into effect on March 1 and continue until Feb. 28, 2027, or until otherwise sanctioned by the commission. IRAC emphasized that the requested effective date for the rate adjustment is subject to review and not guaranteed.
The rate hike is intended to assist Maritime Electric in covering $32 million in additional costs accrued during the maintenance shutdown of the Point Lepreau nuclear generating station in New Brunswick. The station was offline for repairs from last July and returned to service slightly later than anticipated, in mid-December.
Maritime Electric relies on Point Lepreau for 15 percent of its daily power supply. When the station is not operational, the utility must procure electricity from other sources at higher prices.
IRAC disclosed that there are six other pending applications from the utility that could result in further rate modifications, with decisions pending. In a prior statement, Maritime Electric’s President and CEO, Jason Roberts, mentioned the company’s efforts to control expenses amidst various financial challenges, including costs associated with post-tropical storm Fiona in 2022. The company has also submitted an application to IRAC to recover approximately $37 million in restoration costs from Fiona through a customer rate adjustment.
Furthermore, Maritime Electric is awaiting a decision on a $427 million proposal for constructing fossil fuel-powered generators, with no specified timeline for the resolution.
