Newfoundland and Labrador Hydro is one step closer increasing electricity rates.

The Public Utilities Board has approved rate changes for customers effective Oct. 1. Residents on the island could see an increase of 6.4 percent. N.L. Hydro attributes the increase to increasing fuel costs. Fuel adjustments happen every year as a result of the Rate Stabilization Plan.

Final electricity rates for most customers are expected in the coming weeks, following final applications by both N.L. Hydro and Newfoundland Power to the PUB to approve and implement the rate changes.