The province has finalized its rate mitigation plan with Newfoundland and Labrador Hydro.

The plan applies only to island customers paying for the project. The plan will come into effect on July 1, 2024, and will ensure domestic residential rate increases are capped at 2.25 per cent annually for cost recovery associated with the Muskrat Falls project until 2030.

Private utility Newfoundland Power issued a statement in response, saying it provides a level of certainty, but there are other increases coming. An additional estimated 6.7 per cent rate increase is expected on July 1, 2024, subject to approval by the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB). This reflects the additional power supply costs from Hydro which must be recovered in electricity rates through the annual operation of the Rate Stabilization Account. These are supply costs that Newfoundland Power has already incurred and paid to Hydro in 2023.