NB Power announced on Monday that it may reduce the size of a planned overall rate increase thanks to a recent legal settlement.
According to the province’s utility, a settlement with “several insurers” was reached over the refurbishment project at the Point Lepreau Nuclear Generating Station.
That settlement means NB Power won’t need to ask for the 2.0 per cent rate hike it was seeking from regulators, though it has yet to specify what the new request will be.
“At this time, it is expected that the overall rate increase will be adjusted down from the original overall request of 2.0 per cent,” the company said.
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NB Power says that the insurers involved in the settlement had underwritten the construction’s all risk insurance policy.
The details of the settlement are not known at this time and will not be disclosed as a result of a confidentiality agreement, said NB Power.
“This is a great day for NB Power and the people of New Brunswick,” said Gaëtan Thomas, CEO and president of NB Power, in a statement.
“NB Power is pleased to have resolved this matter and to be in a position to share the benefits of this settlement with our rate payers.”
NB Power says they are now asking the province’s Energy and Utilities Board to temporarily adjourn the proceeding so they can assess the implications of the settlement on their rate application.
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Energy and Resource Development Minister Rick Doucet is set to hold a news conference this afternoon to address the settlement.