Regulators approve 18.6 percent hike in electric rates for CNFL customers

(Stock / ICR Archive)

November 24^th, 2015 (ICR News) The Regulatory Authority for Public Services (ARESEP) on Monday approved an 18.6 percent price increase in electricity rates paid by some 520,000 customers of the National Power and Light Company (CNFL), The electric utility that provides electricity to most of the San Jose metro area, surrounding suburbs and the Central Valley.

The increase will take effect on January 1^st, the regulator said.

CNFL had originally requested a rate hike of 35.56 percent, citing a growing debt to its parent company, the Costa Rican Electricity Institute (ICE), in its request to regulators earlier this year.

In deciding on a smaller increase, regulators decided to exclude some US $315 million in costs related to two wind projects as well as about US $700,000 in advertising costs that regulators determined should not be financed through a rate hike.

Regulators also said they were able to determine that the company was including costs related to its collective agreement with its workers’ labor union as part of its original request.  Those items, which regulators also decided should not be financed through a rate hike, included a housing loan program for workers, a union recreation center, and a cafeteria, amongst others.