HALIFAX - Proposals on a multi-year plan for electricity rates will be presented at a private meeting Wednesday involving Nova Scotia Power executives and customer representatives, a utility spokesman says.
David Rodenhiser said the goal is to find an agreement on potential rate increases over the next three years and "to bring some predictability to it."
He would't give specifics about what will be discussed, but said the talks would cover all of the "moving parts" involved in setting power rates including fuel and generating costs, storm damage and the company's profit.
He also wouldn't speculate on whether a deal was close or even possible ahead of rate hearings that begin before the Nova Scotia Utility and Review Board on Sept. 19.
"If the power company and all the customer groups can agree on a solution, that will serve everyone's interests best," Rodenhiser said.
Provincial consumer advocate Bill Mahody said he didn't want to comment ahead of the meeting.
"It's potential settlement discussions and I think they are probably best undertaken if the parties know that public comment is going to be held until the process has run its course."
The meeting is a follow-up to one held last week that a media report indicates was attended by business groups, the Halifax Regional Municipality, Efficiency Nova Scotia and the province's consumer advocate. A lawyer for the utility's largest customer, the NewPage paper mill, was also reportedly in attendance.
The fate of the Cape Breton mill is expected to have a significant impact on whatever is decided regarding new rates.
Last week Ohio-based NewPage said it would close its Port Hawkesbury operation indefinitely, citing the high Canadian dollar and increased rates for shipping and electricity. The mill accounts for about 13 per cent of the overall consumption of electricity in the province.
Meanwhile, Rodenhiser said the power company would also file a separate update with the provincial regulator Wednesday on how much electricity would be used in the province in 2012 and how much fuel would be needed to generate that amount of power.
Rodenhiser said the so-called load and fuel forecasts would include an assessment of what the effect would be on power rates if the NewPage paper mill is shut down.
"The shutdown at NewPage will obviously impact the rate application, but what the end result is in terms of the rates that will take effect on Jan. 1, 2012, is yet to be determined," he said.
Nova Scotia Power has filed for rate increases with the Utility and Review Board that amount to nine per cent for residential users and 16 per cent for large customers, such as NewPage and Bowater Mersey, when additional charges for fuel and a fee for Efficiency Nova Scotia are factored in.
Both mills have filed an application for lower rates.
