Newfoundland Power Inc.

Newfoundland Power Inc.

December 14, 2011 10:53 ET

Newfoundland Power Receives Ruling on Automatic Adjustment Formula

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Dec. 14, 2011) - Newfoundland Power Inc. has received approval from the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB) to suspend operation of the automatic adjustment formula used to set the Company's rate of return on rate base for 2012.

The automatic adjustment formula was originally adopted in 1998 by the PUB. The formula is based on forecast long Canada bond yields and is used annually to determine Newfoundland Power's cost of capital for years between general rate applications.

As a result of the suspension of the operation of the formula for 2012, the Company's regulated return on common equity will remain at 8.38% and current customer electricity rates will continue in effect for 2012, both on an interim basis.

A full cost of capital review is expected to be held by the PUB in 2012.

All the common shares of Newfoundland Power Inc. are owned by Fortis Inc. (TSX:FTS), the largest investor-owned distribution utility in Canada, with total assets of more than $13 billion and fiscal 2010 revenue totalling approximately $3.7 billion. Fortis serves more than 2,000,000 gas and electricity customers. Its regulated holdings include electric distribution utilities in five Canadian provinces and two Caribbean countries and a natural gas utility in British Columbia. Fortis owns and operates non-regulated generation assets across Canada and in Belize and Upper New York State. It also owns and operates hotels and commercial office and retail space primarily in Atlantic Canada. Fortis shares are listed on the Toronto Stock Exchange and trade under the symbol FTS.

With a customer base of over 246,000 customers, Newfoundland Power is committed to safety and dedicated to providing the highest level of customer service and reliability of electricity in the most cost-efficient manner possible. For more information on Newfoundland Power's programs, services and community partnerships, please visit www.newfoundlandpower.com.

Contact Information

  • Ms. Jocelyn Perry
    Vice President, Finance & Chief Financial Officer
    Newfoundland Power Inc.
    Office: (709) 737-2812
    (709) 737-5300 (FAX)