Myers calls Maritime Electric's proposed rate increase 'ridiculous'

Maritime Electric's plan to increase rates and guaranteed profits is a "ridiculous" move, says P.E.I. Environment, Energy and Climate Action MinisterSteven Myers.

The electric utility applied to the Island Regulatory and Appeals Commission (IRAC) to increase rates by three per cent per year for the next three years.

On Tuesday, Myers said the province will intervene and challenge the increase at public hearings to come.Maritime Electric's proposed plan is being reviewed by IRAC, with no dates set for public hearings.

"It will amount to roughly $1 millionextra in just straight profits, so I think the times that we're living in, everybody is finding it tough, prices of things have gone up a lot in the last little while," Myers said.

"It's probably ridiculous to think that a company should come in and find themselves a guaranteed rate of return of $1 million dollarswhile people are suffering."

For a benchmark, Maritime Electric uses a residential customerusing an average of 650 kilowatt hours per month.

That customercurrently hasamonthly bill of about $135. If the rate application is approved, their bill would increase to about $139 next March.Compounded, it would increase to $143 in 2024, and then to $147.50 in 2025.

'Pretty hard to prove that you need more profits'

Maritime Electric will have to prove in its application to IRAC why the company needs to increase rates and why their guaranteed profits should increase, Myers said.

"It's pretty hard to prove that you need more profits at a time when there is so many people with a reduced quality of living because of the increased cost to everybody," he said.

Maritime Electric said its expenses are going up and it has some big expenditures ahead,including the decommissioning of its power station in downtown Charlottetown. Other expenditures include more brush cutting to reduce the number of power outages caused by downed trees, especially during winter storms.

Jason Roberts, CEO of the electric utility, told CBC News last week the biggest cost continues to be purchasing energy, with energy-related costs accounting for 46 per cent of the proposed rate increases.

Maritime Electric also said demand continues to grow, as people install heat pumps and buy electric cars.

Hearing dates on the proposed plan will be made public by IRAC withthe decision to allow or deny the increases ultimately being made by the regulatory body.