18 days ago I wrote to Nalcor with this question:
"I understand that Nalcor is estimating that the new cost estimates will result in a $8 higher monthly power bill for the "average" customer. I would like to see the analysis that derived the $8 figure from the new cost estimates. Is that possible?"
I received the following reply today.
One interesting observation: they seem to assume that the higher price will have no effect on average consumption. Do they take price elasticity into account in their long term forecasts?
Correct me if I am wrong, but I think the current before-tax rate for residential customers in grid-connected Newfoundland works out to an average of about 12.2 cents/kWh. If that is correct, then the increase between now and 2018 will be 29% (15.6 / 12.2) or a compound rate of increase of over 6% per year.
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