The Minister had asked IRAC to review Maritime Electric's request for a rate increase. PEI's rates are still tied to New Brunswick plus 10%, as was the original formula, plus an adjustment mechanism which allows the company to recover increased energy purchases and increased generating costs. Current regulations allow the Minister of Development and Technology to ask for any rate increase to be reviewed.

Minister Currie received the report from IRAC shortly before it was made public.

"Certainly, nobody is pleased with an increase, but the report confirms that the increase reflects the escalating costs of energy purchasing and electrical generation which have skyrocketed throughout the world. This isn't a situation unique to PEI; it is reflective of many uncertainties throughout the world."

Minister Currie also noted that, without the review, the cost passed on to consumers could have been slightly higher.

"The review identified a very slight difference between the increase that Maritime Electric wanted and what consumers actually pay. To me, that proves that IRAC has fully and completely reviewed every expense and I'm pleased about that," he said.

However, Minister Currie says there is more work to be done.

"I intend to go to Cabinet to ask them to authorize IRAC to review the current regulatory framework that governs rates increases. This framework has not received a complete review since 1994 when the present framework was introduced. I think it is time we took a look at it to make sure it's working for everyone – most notably, Island consumers."

The Minister said he will bring the results of IRAC's review and recommendations to the floor of the Legislature during the spring session for discussion and debate.

Minister Currie added that, given the rapidly changing nature of the electricity business, he will ask IRAC to explore other regulatory models which may be appropriate for PEI.

Minister Currie also pointed out that Islanders have the ability to reduce the increase through energy conservation. Over the next few months, the federal government will roll out rules on compliance with the Kyoto accord. Those rules will ask Canadians to reduce their personal energy consumption.

"The average household consumer in PEI will see an increase of about $10 per month – that's $2.50 per week or about 35 cents per day. You don't have to conserve much energy to save 35 cents per day on your bill and comply with the new climate changes rules," he said.

Minister Currie pointed out that even by turning off lights, television sets and computers when they are not in use Islanders can significantly reduce their monthly bill.