Current Customer FAQs

About the Refund

WHEN WILL I GET MY REFUND? Updated

I HAVE RECEIVED MY REFUND. HOW DO I FIND OUT HOW IT WAS CALCULATED? New

WHO RECEIVED THE REFUND?

WHY HAVEN’T I RECEIVED MY REFUND CHEQUE? New

I HAVE RECEIVED A REFUND CHEQUE, BUT THE INDIVIDUAL NAMED ON THE CHEQUE IS NOW DECEASED. WHAT SHOULD I DO?

DOES MY REFUND INCLUDE HST?

DOES MY REFUND INCLUDE INTEREST?

I USE THE AUTOMATIC PAYMENT PLAN. HOW WILL THIS AFFECT MY REFUND?

I USE THE EQUAL PAYMENT PLAN. HOW WILL THIS AFFECT MY REFUND?

WHAT IS THE AVERAGE REFUND AMOUNT PER CUSTOMER?

WHAT IS MY REFUND AMOUNT?

SPECIFIC CUSTOMER SITUATIONS

CAN I TRANSFER MY REFUND TO ANOTHER NEWFOUNDLAND POWER ACCOUNT?

I CHANGED ADDRESSES/ACCOUNT NUMBERS DURING THE REFUND PERIOD. DOES THAT AFFECT MY REFUND?

I AM A CURRENT CUSTOMER LIVING OUTSIDE NORTH AMERICA. DOES THIS AFFECT MY REFUND?

I BECAME DIVORCED OR SEPARATED SINCE JANUARY 1, 2007. DOES THIS AFFECT MY REFUND?

WILL LIMITED LIABILITY COMPANIES RECEIVE A REFUND? WHAT IF MY COMPANY HAS CHANGED?

Background

WHAT IS THE RATE STABILIZATION PLAN?

WHY DOES HYDRO'S RSP ACCOUNT AFFECT NEWFOUNDLAND POWER CUSTOMERS?

WHY IS THERE A SURPLUS THAT NEEDS TO BE REFUNDED TO CUSTOMERS?

HOW MUCH IS ACTUALLY OWED TO CUSTOMERS?

WHO IS ELIGIBLE FOR THE REFUND?

HOW MANY NEWFOUNDLAND POWER CUSTOMERS WILL GET A REFUND?

IS NEWFOUNDLAND POWER OR HYDRO GETTING ANY MONEY OUT OF THIS?



About the Refund

When will I get my refund? Updated

We began to issue refunds to current customers on February 15th, 2017.*

Most current Newfoundland Power customers will see their refund reflected on their next electricity bill(s). These customers represent about 85% of the total RSP balance owing to Newfoundland Power customers, or approximately $120 million.

The next step will involve locating eligible former customers. We expect to turn our attention to refunds for former customers starting in April 2017.

*Please allow up to 10 business days for cheque delivery.



I HAVE RECEIVED MY REFUND. HOW DO I FIND OUT HOW IT WAS CALCULATED? New

For specific details on how your RSP refund was calculated, please visit our self-service webpage,* or refer to the RSP Refund Statement that will be included with your next electricity bill(s).

If you also had accounts that were active during the refund period but are no longer active today, you will receive a separate RSP Refund Statement indicating the calculation breakdown for these accounts. These RSP Refund Statements for current customers with inactive accounts will be sent on February 20, 2017. Customers who receive their bills by email will receive these statements by email on February 20, 2017. Customers who receive their bill by Canada Post should allow a few days for delivery.

Your RSP refund was determined by multiplying your electricity usage (kWh) during the refund period by the RSP Refund Rate of $0.00364/kWh. Your refund has also been adjusted for HST and recovery of the Provincial Government’s Residential Energy Rebate (RER), equivalent to the 8% provincial portion of HST that was in effect from October 1, 2011, to June 30, 2015.

Your refund was applied against any balance on your account(s) at the time it was issued. Any remaining amount was sent in the form of a cheque.

*You will need to log in to your MY ACCOUNT self-service portal. If you are signing up for MY ACCOUNT for the first time, you will also need your meter number.



WHO RECEIVED THE REFUND?

All cheques were issued to the customer whose name is on the electricity bill. If you contributed to, or paid for, electricity during the refund period but your name was not on the electricity bill, please contact the individual whose name is on the account. It is the responsibility of the account holder to disburse any refund amounts as appropriate.



WHY HAVEN’T I RECEIVED MY REFUND CHEQUE? New

There may be several reasons why you have not received a refund cheque:

  • Are you eligible? To be eligible, you must have used, and paid for, electricity during part or all of the refund period (January 1, 2007, to August 31, 2013).
  • Are you a current Newfoundland Power customer? We are focused on refunds for current customers first. We expect to turn our attention to refunds for former customers starting in April 2017. Please visit the former customer FAQ page for more information.
  • Is it in the mail? Most refund cheques were mailed on February 15, 2017. Please allow up to 10 business days for delivery.
  • Is your name on the electricity bill? All cheques have been issued to the customer whose name is on the electricity bill. If you contributed to, or paid for, electricity during the refund period but your name was not on the electricity bill, please contact the individual whose name is on the account. It is the responsibility of the account holder to disburse any refund amounts as appropriate.
  • Was there a balance on your account(s)? Your refund was applied against any balance on your account(s) at the time it was issued. If your balance exceeded your refund amount, no cheque was issued. Cheques were not issued for amounts less than $2. Any amounts less than $2 have been applied as a credit on your account(s).
  • Did you move recently? Cheques have been issued to the address listed on the electricity bill as of February 13, 2017.

If none of the above apply, we may need to speak with you before we can issue your refund. Please call 1-800-663-2802 to speak with a Customer Service Representative.



I HAVE RECEIVED A REFUND CHEQUE, BUT THE INDIVIDUAL NAMED ON THE CHEQUE IS NOW DECEASED. WHAT SHOULD I DO?

We may be able to issue the refund cheque in the name of the Estate, or another person if appropriate documentation is provided, such as Letters of Administration/Probate. Please contact us at 1-800-663-2802 so we may assist you with this matter.



DOES MY REFUND INCLUDE HST

Yes. Refunds are adjusted for HST (a combination of the 14% paid on electricity used between January 1, 2007, and December 31, 2007, and the 13% paid on electricity used between January 1, 2008, and August 31, 2013). Refunds are also adjusted for the Provincial Government’s Residential Energy Rebate (RER), equivalent to the 8% provincial portion of HST that was in effect from October 1, 2011, to June 30, 2015.



DOES MY REFUND include Interest?

Yes. The total balance in the RSP account includes interest accumulated at an average rate of 7% per year until January 31, 2017.



I use the Automatic Payment Plan. How will this affect my refund?

If you use Newfoundland Power’s Automatic Payment Plan, your monthly account balance is paid automatically. You would receive your full refund amount by cheque.



I use the Equal Payment Plan. How will this affect my refund?

Using the Equal Payment Plan (EPP) does not impact your refund. Your refund was applied against any balance on your account(s) at the time it was issued. Remaining refund amounts were issued in the form of a cheque. If your electricity bill indicates a “deferred balance” related to EPP, this did not affect your refund.



WHAT IS THE AVERAGE REFUND AMOUNT PER CUSTOMER?

Electricity usage varies widely between residential, commercial, and street & area lighting electricity accounts, resulting in a wide range of customer refund amounts.

The amount of your refund depends on how much electricity you used, and paid for, during the refund period (January 1, 2007, to August 31, 2013). Your RSP refund is determined by multiplying your electricity usage (kWh) during the refund period by the RSP Refund Rate of $0.00364/kWh. The refund amount is also adjusted for taxes.

Electric Heat Example: A residential customer with electric heat uses, on average, approximately 1,534 kWhs of electricity each month and would receive an average refund of approximately $5.58* for each monthly electricity bill that was paid during the refund period.

Non-electric Heat Example: A residential customer without electric heat uses, on average, approximately 837 kWhs of electricity each month and would receive an average refund of approximately $3.05* for each monthly electricity bill that was paid during the refund period.

*Not adjusted for taxes



WHAT IS MY REFUND AMOUNT?

Customers with active electricity accounts can access their refund information via our self-service website (please have your account number ready). You will need to log in to your MY ACCOUNT self-service portal to access your refund amount. If you are signing up for MY ACCOUNT for the first time, you will also need your meter number.



SPECIFIC CUSTOMER SITUATIONS

Can I transfer my refund to another Newfoundland Power account?

Unfortunately, we are unable to transfer the refund amount between accounts. The refund was applied against any balance on your account(s). Remaining refund amounts were issued in the form of a cheque.



I CHANGED ADDRESSES/ACCOUNT NUMBERS DURING THE REFUND PERIOD. DOES THAT AFFECT MY REFUND?

As long as the name on the account has remained consistent through your address changes, we are able to track your electricity usage history during the refund period. Your refund combines the usage from all of your addresses/account numbers.



I AM A CURRENT CUSTOMER LIVING OUTSIDE NORTH AMERICA. DOES THIS AFFECT MY REFUND?

In this case, your full refund has been applied as a credit to your electricity account. The refund was first applied against any balance on your account(s) at the time your refund was issued. If you would like to receive payment of any remaining refund amount, please contact us at 1-709-737-2802 to provide your banking information required for an Electronic Funds Transfer. This option is for international addresses only. Refund cheques will not be sent to addresses outside North America.



I BECAME DIVORCED OR SEPARATED SINCE JANUARY 1, 2007. DOES THIS AFFECT MY REFUND?

Cheques have been issued to the customer whose name is on the electricity bill. If you contributed to, or paid for, electricity during the refund period but your name was not on the electricity bill, please contact the individual who was named on the account. It is the responsibility of the account holder to disburse any refund amounts as appropriate.



WILL LIMITED LIABILITY COMPANIES RECEIVE A REFUND? WHAT IF MY COMPANY HAS CHANGED?

Yes, limited liability companies and other businesses may be eligible for a refund.

If you are a customer with a limited liability company or entity that falls into one of the following categories, please contact us at 1-800-663-2802 to discuss your account:

  • My business has been dissolved
  • I sold my business during the refund period
  • My business still exists in the Provincial Registry, however, the account that was active during the refund period is no longer active today
  • My business went through a name change during, or since, the refund period
  • My business has amalgamated with another company


Background

What is the Rate Stabilization Plan?

Rates are set based on a forecast of how much electricity is anticipated to be needed and the corresponding cost of fuel. Because these two things are subject to change, Hydro has a Rate Stabilization Plan (RSP) so they can adjust rates annually to account for the "actual" amount and cost of oil used to generate electricity at the Holyrood Thermal Generating Station.



WHY DOES HYDRO'S RSP ACCOUNT AFFECT NEWFOUNDLAND POWER CUSTOMERS?

Our customers are affected by Hydro's RSP account because Newfoundland Power buys approximately 93% of the electricity we deliver to our customers from Hydro. If the rates Hydro charges Newfoundland Power go down, we pass that savings on to customers.



Why is there a surplus that needs to be refunded to customers?

The amount of electricity that was expected to be required by certain industrial customers on the island was significantly reduced with closures related to the pulp and paper industry. This produced significant savings in anticipated fuel costs. As a result, a balance accumulated in Hydro's RSP account between 2007 and 2013. This balance is now owed to eligible Newfoundland Power and Hydro customers.



How much is actually owed to customers?

Approximately $138 million is owed to customers who used, and paid for, electricity during the refund period.



Who is eligible for the refund?

Approximately 292,000 customers of Newfoundland Power and Island interconnected customers of Newfoundland and Labrador Hydro are eligible for a refund. To be eligible, you must have used, and paid for, electricity during part or all of the refund period (January 1, 2007, to August 31, 2013).

This refund applies to residential, commercial, and street & area lighting electricity accounts.



How many Newfoundland Power customers will get a refund?

Our records show approximately 268,000 Newfoundland Power customers are eligible to receive a refund:

  • 186,000 of these are customers of Newfoundland Power today
  • 82,000 are former customers – they have no active electricity accounts today


Is Newfoundland Power or Hydro getting any money out of this?

No. The utilities will not benefit from this refund. In administering the RSP refund, the utilities will incur costs beyond normal operating costs. These one-time, incremental costs include such items as customer service, banking, advertising, information technology and project management costs.

Given the number of customers impacted, the length of time this balance has been growing, and the significant amount of money involved, it is important that the refund mechanism and implementation plan is fair and reasonable for customers. Only costs related to providing this refund to customers will be recovered.