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RSP Refund FAQs

About the Refund

WHEN WILL I RECEIVE MY REFUND? Updated

WHO IS ELIGIBLE FOR THE REFUND?

HOW MUCH WILL I GET BACK? Updated

HOW CAN I FIND OUT MY REFUND AMOUNT? Updated

HOW WAS MY REFUND CALCULATED? Updated

WHO WILL RECEIVE THE REFUND? Updated

HOW WILL I RECEIVE MY REFUND? Updated

DO I NEED TO APPLY FOR MY REFUND?

WILL THE REFUND INCLUDE HST? Updated

WILL THE REFUND INCLUDE INTEREST?

CAN I TRANSFER MY REFUND TO ANOTHER NEWFOUNDLAND POWER ACCOUNT?

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

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

SPECIFIC CUSTOMER SITUATIONS

IF I CHANGED ADDRESSES/ACCOUNT NUMBERS DURING THE REFUND PERIOD, WILL THAT AFFECT MY REFUND? Updated

I HAVE BECOME DIVORCED OR SEPARATED SINCE JANUARY 1, 2007. HOW WILL THIS AFFECT MY REFUND? Updated

THE PERSON WHOSE NAME WAS ON THE ELECTRICITY BILL IS NOW DECEASED. HOW WILL THIS AFFECT THE REFUND? Updated

I AM CURRENTLY LIVING AT AN INTERNATIONAL ADDRESS OUTSIDE NORTH AMERICA. WILL THIS AFFECT MY REFUND? Updated

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

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?

HOW MANY NEWFOUNDLAND POWER CUSTOMERS WILL GET A REFUND?

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

WHY IS IT TAKING SO LONG TO ISSUE THE REFUND?


About the Refund

When will I receive my refund? Updated

Refunds for customers with active electricity accounts will be issued beginning on February 15, 2017.

If you are currently a customer of Newfoundland Power, you will be among the first to receive your refund. We are focusing on getting the refund to customers who have active accounts now. This represents 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 will be turning our attention to these customers once the majority of those with active accounts have received their refunds.



Who is eligible for the refund?

Approximately 310,000 customers of Newfoundland Power and Island interconnected customers of Newfoundland and Labrador Hydro (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 much will I get back? Updated

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 0.364 cents/kWh. The refund amount will also be 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.

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

*Not adjusted for taxes



HOW CAN I FIND OUT MY REFUND AMOUNT? Updated

Customers with active electricity accounts can access their refund information via our self-service options (please have your account number ready):

  1. Website*
  2. Phone: 1-800-663-2802

*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.




HOW WAS MY REFUND CALCULATED? Updated

Your RSP refund is determined by multiplying your electricity usage (kWh) during the refund period by the RSP Refund Rate of 0.364 cents/kWh. Your refund will also be 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.

THE MATH

kWh x $0.00364 = RSP REFUND

RSP Refund + HST Refund – RER Recovery = Total Refund

The refund will be applied against any balance on your account(s) at the time your refund is issued. A cheque will be sent to you for any remaining amount.

For specific details on how your RSP refund was calculated, please visit our self-service webpage , or refer to your next monthly electricity bill statement(s) that will arrive after your refund has been issued.

If you had accounts that were active during the refund period but are no longer active today, you will receive a separate RSP Refund Statement. This will be sent by mail (or by email for ebills customers) at the time your refund is issued.



Who will receive the refund? Updated

All cheques will be 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 disperse any refund amounts as appropriate.



How will I receive my refund? Updated

If you are currently a customer of Newfoundland Power, your refund will be issued automatically. There is no application required.

The refund will be applied against any balance on your account(s) at the time it is issued. A cheque will be sent to you for any remaining refund amounts. All cheques will be issued to the customer whose name is on the electricity bill.

Remaining refund amounts of less than $2.00 will be applied as a credit on your account. If you have multiple accounts, you will receive one cheque that includes the refund for all your eligible accounts.



Do I need to apply for my refund?

If you are currently a customer of Newfoundland Power, your refund will be issued automatically. There is no application required. We are currently working to determine how former customer refunds will be processed.



Will the refund include HST? Updated

Yes. Refunds will be 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 will also be 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.



Will the refund include Interest?

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



Can I transfer my refund to another Newfoundland Power account?

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



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

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



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

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


SPECIFIC CUSTOMER SITUATIONS

If I changed addresses/account numbers during the refund period, will that affect my refund? Updated

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. In this case, you will receive one refund that combines the usage from all of your addresses / account numbers. If you have an active electricity account with Newfoundland Power today, your refund will be among the first to be issued. We will turn our attention to refunds for eligible former customers once the majority of those with active accounts have received their refunds.



I HAVE BECOME DIVORCED OR SEPARATED SINCE JANUARY 1, 2007. HOW WILL THIS AFFECT MY REFUND? Updated

Cheques will be 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 disperse any refund amounts as appropriate.



THE PERSON WHOSE NAME WAS ON THE ELECTRICITY BILL IS NOW DECEASED. HOW WILL THIS AFFECT THE REFUND? Updated

Cheques will be issued to the customer whose name is on the electricity bill unless we are notified of this situation. 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. We will be processing these refunds after the refunds for the majority of current customers have been completed.



I AM CURRENTLY LIVING AT AN INTERNATIONAL ADDRESS OUTSIDE NORTH AMERICA. WILL THIS AFFECT MY REFUND? Updated

In this case, your full refund will be applied as a credit to your electricity account. The refund will first be applied against any balance on your account(s) at the time your refund is issued. If you would like to receive payment of any remaining refund amount, please contact us at 1-800-663-2802 to provide your banking information required for an Electronic Funds Transfer (EFT). This option is for international addresses only. Refund cheques will not be sent to international addresses outside North America.



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

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. The balance continues to earn interest until customers are refunded. 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.



How many Newfoundland Power customers will get a refund?

Our records show approximately 510,000 individual electricity accounts are eligible to receive a refund. This represents about 268,000 customers (some customers have more than one account).

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

The focus is on refunding current/active customers first, and will then shift to former customers.



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.



Why is it taking so long to issue the refund?

This is the first large scale refund program of this nature and has required significant coordination between the two utilities, and with government and the Public Utilities Board. The determination of eligible recipients is also complex. For example, some customers who are eligible for a refund no longer have active electricity accounts with us. In addition, the period of time when RSP funds accumulated is significant (approximately 7 years), adding to the complexity.