Deal announced on rate mitigation #nlpoli

Prime Minister Justin Trudeau and Premier Andrew Furey announced a deal on rate mitigation.

Trudeau says we will be protected from major electricity hikes.

Furey says this is a big day for Newfoundland and Labrador.

There is an Agreement-in-Principle in place that is worth $5.2 billion. This agreement in principle will contribute to a long-term, sustainable financial base for the Projects and reduce their cost of financing. It provides $2 billion in federal financing, including a $1 billion investment in the province’s portion of the Projects’ Labrador-Island Link and a federal loan guarantee of $1 billion for the Projects’ Muskrat Falls and Labrador Transmission Assets.

Rates will be 14.7 cents per kilowatt-hour in 2022.

Hikes after that will be based on the rate of inflation.