IRAC approves another Maritime Electric rate increase

Prince Edward Islanders will start paying more for electricity on Sunday.

The Island Regulatory and Appeals Commission has approved an application by the utility to raise rates by 0.33 cents/kW-h starting Oct. 1.

Maritime Electric applied for the increase to cover the costs of unexpected shutdowns at New Brunswick's Point Lepreau nuclear power plant.

That third of a cent comes to a 2.1 per cent increase in the rate per kilowatt-hour for residential customers, which Maritime Electric says would amount to about $27 a year.

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The company expects to recoup about $5 million in costs with the increase.

The IRAC decision limits the collection of this higher rate until Feb. 28, 2026. At that point Maritime Electric should have recouped its losses, and the rate would drop again by a third of a cent.

The change is in addition to a four per cent increase in May.

This may not be the end of rate increases from the utility due to higher costs.

Maritime Electric is hoping Ottawa will help it pay for expenses incurred for repairs following post-tropical storm Fiona. That could mean another rate increase of two to three per cent.