Approximately 292,000 customers of Newfoundland Power and Island interconnected customers of Newfoundland and Labrador Hydro (Hydro) are eligible for the Rate Stabilization Plan (RSP) 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.
In order to issue a refund to a former customer, we must validate your identity to ensure it matches with an account that's eligible for a refund. We will need to contact you in order to complete this process. Please register here before the closing date of September 28, 2018, in order to receive your refund.
The amount of your refund depends on how much electricity you used, and paid for, during the refund period (January 1, 2007, to August 31, 2013). 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 will also be 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.
The MathkWh x $0.00364 = RSP REFUND
RSP Refund + HST Refund – RER Recovery = Total Refund
Electric Heat Example: A residential customer with electric heat uses, on average, approximately 1,534 kWhs of electricity each month and would receive an average refund of approximately $5.58* for each monthly electricity bill that was paid during the refund period.
Non-electric Heat Example: A residential customer without electric heat uses, on average, approximately 837 kWhs of electricity each month and would receive an average refund of approximately $3.05* for each monthly electricity bill that was paid during the refund period.
Electricity usage varies widely between residential, commercial, and street & area lighting electricity accounts, resulting in a wide range of customer refund amounts.
*Not adjusted for taxes
In order to issue refunds to former customers, we must validate your identity to ensure it matches with an account eligible for a refund. We will need to speak with you in order to complete this process. Please call us at 1-800-663-2802 or register so we may get in touch with you and provide your refund in a timely fashion.
All refunds will be issued in the form of a cheque.
If you had multiple accounts, you will receive one cheque that includes the refund for ALL of your eligible accounts.
Yes. Refunds will be adjusted for HST (a combination of the 14% paid on electricity used between January 1, 2007, and December 31, 2007, and the 13% paid on electricity used between January 1, 2008, and August 31, 2013). Refunds will also be adjusted for 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.
Yes. The total balance in the RSP account includes interest accumulated at an average rate of 7% per year until January 31, 2017.
Yes, September 28, 2018, is the final day eligible customers can apply for their refund.
No, all applications must be received on, or before, September 28, 2018. Applications received after this date will not be accepted.
It is anticipated that there will be some unclaimed refunds as well as returned mail and uncashed cheques. Where a returned or uncashed cheque relates to a current customer, the refund amount will be credited to the customer’s account. Where a returned or uncashed cheque relates to a former customer, the Company will attempt to contact the customer. Any balance remaining following closure of the RSP Refund Plan will be transferred back to Hydro’s RSP account.
As long as the name on the account has remained consistent through your address changes, we are able to track your electricity usage history during the refund period. In this case, you will receive one refund cheque that combines the usage from all of your addresses / account numbers.
Cheques will be issued to the customer whose name was on the electricity bill. If you contributed to, or paid for, electricity during the refund period but your name was not on the electricity bill, please contact the individual who was named on the account. It is the responsibility of the account holder to disperse any refund amounts as appropriate.
We may be able to issue the refund cheque in the name of the Estate, or another person if appropriate documentation is provided, such as Letters of Administration/Probate.
Please register here before the closing date of September 28, 2018, so we may get in touch with you as required. Please include the name of the individual that was listed on the electricity bill as well as your name and current contact information. In the additional notes section, please indicate that the individual listed on the account has now passed away.
This will not affect the amount of your refund. We are unable to send cheques outside North America. We will be able to complete this process through an Electronic Funds Transfer.
Please register here before the closing date of September 28, 2018, so we may get in touch with you.
Yes, limited liability companies and other businesses may be eligible for a refund.
If you are a former customer with a limited liability company or entity that falls into one of the following categories:
Please register here before the closing date of September 28, 2018, so we may get in touch with you as required. Please include the name of the Company that was listed on the electricity bill as well as your name and current contact information. In the additional notes section, please indicate which of the above categories apply to you.
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, Newfoundland and Labrador Hydro has a Rate Stabilization Plan 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.
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.
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.