11/24/2014 07:22 EST | Updated 01/24/2015 05:59 EST

NB Power applies for two per cent rate hike to come into effect next July

FREDERICTON - NB Power has applied to the province's Energy and Utilities Board for a two per cent rate increase effective July 2015.

A release from the Crown-owned utility says the increase would apply to all customer classes, and is expected to generate close to $21 million in additional revenue next year.

Chief financial officer Darren Murphy says the province's power rates would still be the lowest in Atlantic Canada if the rate increase goes ahead.

The utility said in 2011 that customers could expect about a two per cent increase each year over the next 10 years.

NB Power is trying to pay down $1 billion in debt by 2021.

The utility has to make an annual application to the Energy and Utilities Board for approval of all rates under the province's Electricity Act.