The majority of eligible current customers have now received their RSP refund. If you are an eligible current customer who has not received your refund, please contact us directly at 1-800-663-2802 if you have not already done so.
For specific details on how your RSP refund was calculated, please visit our self-service webpage,* or refer to the RSP Refund Statement that will be included with your next electricity bill(s).
Your RSP refund is determined by multiplying your electricity usage (kWh) during the refund period by the RSP Refund Rate of $0.00364/kWh. Your refund has also been adjusted for HST and recovery of the Provincial Government’s Residential Energy Rebate (RER), equivalent to the 8% provincial portion of HST that was in effect from October 1, 2011, to June 30, 2015.
Your refund was applied against any balance on your account(s) at the time it was issued. Any remaining amount was sent in the form of a cheque.
*You will need to log in to your MY ACCOUNT self-service portal. If you are signing up for MY ACCOUNT for the first time, you will also need your meter number.
Rates are set based on a forecast of how much electricity is anticipated to be needed and the corresponding cost of fuel. Because these two things are subject to change, Hydro has a Rate Stabilization Plan (RSP) so they can adjust rates annually to account for the "actual" amount and cost of oil used to generate electricity at the Holyrood Thermal Generating Station.
Our customers are affected by Hydro's RSP account because Newfoundland Power buys approximately 93% of the electricity we deliver to our customers from Hydro. If the rates Hydro charges Newfoundland Power go down, we pass that savings on to customers.
The amount of electricity that was expected to be required by certain industrial customers on the island was significantly reduced with closures related to the pulp and paper industry. This produced significant savings in anticipated fuel costs. As a result, a balance accumulated in Hydro's RSP account between 2007 and 2013. This balance is now owed to eligible Newfoundland Power and Hydro customers.
Approximately $138 million is owed to customers who used, and paid for, electricity during the refund period.
Approximately 292,000 customers of Newfoundland Power and Island interconnected customers of Newfoundland and Labrador Hydro are eligible for a refund. To be eligible, you must have used, and paid for, electricity during part or all of the refund period (January 1, 2007, to August 31, 2013).
This refund applies to residential, commercial, and street & area lighting electricity accounts.
Our records show approximately 268,000 Newfoundland Power customers are eligible to receive a refund:
No. The utilities will not benefit from this refund. In administering the RSP refund, the utilities will incur costs beyond normal operating costs. These one-time, incremental costs include such items as customer service, banking, advertising, information technology and project management costs.
Given the number of customers impacted, the length of time this balance has been growing, and the significant amount of money involved, it is important that the refund mechanism and implementation plan is fair and reasonable for customers. Only costs related to providing this refund to customers will be recovered