11/10/2014 01:26 EST | Updated 01/10/2015 05:59 EST

Newfoundland and Labrador Hydro files application for rate increases

ST. JOHN'S, N.L. - Newfoundland and Labrador Hydro is seeking a 2.8 per cent increase to electricity rates for customers on the island.

The utility issued a statement Monday saying it also wants to raise rates in Labrador by 1.9 per cent.

The province's public utilities board will assess the application from Newfoundland and Labrador Hydro.

The utility says it needs more revenue to cover rising fuel costs and upgrade equipment that is more than 40 years old.

Vice-president Rob Henderson says the utility wants the board to set the rates for Feb. 1, 2015.

He says the most recent general rate increase was in 2006.