Newfoundland and Labrador Hydro has not required any long-term debt since 2006. This is a favourable time for Hydro to return to the market, as interest rates for long-term debt are very attractive relative to historical levels.
The project costs and associated financing has already been incorporated into all long-term rate projections.
From 2009 to 2013, HydroÂ’s annual capital programs averaged $66 million per year and focused largely on planned maintenance and the rehabilitation of existing assets. However, for 2014, capital investments will increase nearly fourfold to $264 million.
“Our increased investment in the system has been anticipated for some time,” explained Henderson. “As our electrical system ages, like other utilities in North America, continued capital investment in maintenance and replacement is required to provide the service our customers expect.”