Maritime Electric, the power utility serving customers on Prince Edward Island (P.E.I.), has submitted a request to the Island Regulatory and Appeals Commission (IRAC) seeking approval for a temporary rate increase starting in March. If the application is granted, customers could face a seven percent rise in their monthly bills, translating to an average increase of around $15. Industrial customers may see their bills double.
The proposed rate adjustments are scheduled to come into effect on March 1 and remain in place until February 28, 2027, unless otherwise sanctioned by the commission. IRAC emphasized that while it considers requested effective dates in applications, there are no guarantees that applications will be processed according to those dates.
The rate hike is intended to help Maritime Electric offset $32 million in cost overruns incurred during the maintenance shutdown of the Point Lepreau nuclear generating station in New Brunswick. The station was out of service for repairs from July and returned to operation in mid-December, two weeks beyond the initial projection.
Maritime Electric relies on Point Lepreau for 15 percent of its daily power supply. When the nuclear plant is offline, the utility has to purchase electricity from other sources at higher costs. In addition to this rate increase, the utility has multiple pending applications with IRAC, including one concerning the recovery of $37 million in post-tropical storm Fiona restoration expenses and a $427 million proposal for building fossil fuel-powered generators. The decisions on these applications are pending, with no set timeline provided by the company.