Nova Scotia Power and province battle as citizens dream of a grid that can weather storms
As Nova Scotia's electrical utility and government quarrel over the cost of preparing the grid for the next hurricane, some ratepayers are hoping they'll start working together.
On Wednesday, the province announced it would place a cap on power rate hikes at 1.8 per cent over the next two years for non-fuel costs -- saying that's sufficient for Nova Scotia Power to strengthen its distribution system to face a storm like Fiona.
But within hours, the utility's president, Peter Gregg, issued a news release warning the proposed bill "limits ... the amount of storm preparedness and system hardening we can do in the province."
For Scott and Karry Morrison, whose Sydney, N.S., restaurants lost power for 10 days and saw more than $6,000 worth of food spoil -- the conflicting messages are frustrating.
"The only logical answer is for both parties to find a way to work together to minimize any future impacts of weather at as low a cost increase to customers as possible," Scott Morrison said in an interview Thursday.
He said he and his partner believe the privately owned utility could have done more to improve its distribution system before Fiona, and they see little point in the province "taking a hard line against it (the power company)," rather than "sitting down and working out the way forward."
Amanda McDougall, mayor of the Cape Breton Regional Municipality, said in an interview on Thursday the conflict is disheartening at a time her city and others are still struggling to clean up.
"It's disappointing to see this back and forth, when communities are working to rebuild, post Fiona .... Getting lost in the rhetoric is there's actually no planning at either end (by the utility or the province)," she said.
Kristen van de Biezenbos, a law professor at the University of Calgary specializing in energy law, said there are built-in disincentives that cause privately owned, profit-driven utilities to put off upgrading their grids, even with climate change suggesting more storms are on the way.
She says the formula used to calculate how much profit the power firm can declare is partly based on the size of its assets. Van de Biezenbos said this motivates the utility to spend on new infrastructure rather than on improving the reliability of existing lines.
However, she also said even Crown-owned utilities across Canada have been reluctant to make the needed investments in distribution systems, "because it will still cause a rate rise, and governments are loath to create negative press for themselves by even implicitly allowing that."
She suggests the battling parties should consider pursuing other sources of funds besides ratepayers, such as the federal government, to prepare the grid to withstand more intensive hurricanes.
One option, she said, would be going to the federal government or an entity such as the Canada Infrastructure Bank, a federal Crown corporation, "to let Parliament know that the situation is serious but can't be addressed in the usual way -- by raising rates -- because economic pressure on households is already so high."
"Sometimes it seems like a lack of imagination because the utility rate is traditionally the only funding source for these costs, policymakers and regulators seem unwilling or unable to think outside the box."
Still, the Progressive Conservative government said Wednesday it thinks the utility has the means to harden its system before another storm like Fiona hits, which slammed the province with wind speeds of up to 170 kilometres per hour on Sept. 24.
During his news conference on Wednesday announcing the rate hike cap, Tory Rushton, minister of natural resources, said that 90 per cent of power outages are due to trees falling on power lines, and he blamed "poor vegetation management" -- referring to the utility's budget for cutting trees near power lines.
According to Nova Scotia Power, it spent between $20 million and $25 million in capital and operating costs on tree management annually over the past five years, with a slowdown in 2020 due to COVID-19.
During the news conference on Wednesday, a department official estimated the province's proposed legislation could mean an increase of up to $30 million in the annual operating budget for tree trimming and other measures to improve reliability.
"We believe that's what is needed for the reliability of the grid to maintain and keep the lights on throughout Nova Scotia," said the minister. "We expect major improvements in restoration times."
This report by The Canadian Press was first published Oct. 21, 2022.
CTVNews.ca Top Stories
Death toll from Hurricane Helene rises to 227 as grim task of recovering bodies continues
The death toll from Hurricane Helene inched up to 227 on Saturday as the grim task of recovering bodies continued more than a week after the monster storm ravaged the Southeast and killed people in six states.
Car flies into B.C. backyard, lands upside down
A driver suffered only minor injuries after going airborne in a residential neighbourhood in Maple Ridge, B.C., on Friday, the car eventually landing on its roof in someone’s backyard.
Donald Trump, Elon Musk attend rally at same Pennsylvania grounds where gunman tried to assassinate Trump
Donald Trump returned on Saturday to the Pennsylvania fairgrounds where he was nearly assassinated in July, holding a sprawling rally with thousands of supporters in a critical swing state Trump hopes to return to his column in November's election.
Tax rebate: Canadians with low to modest incomes to receive payment
Canadians who are eligible for a GST/HST tax credit can expect their final payment of the year on Friday.
'No one has $70,000 dollars lying around': Toronto condo owners facing massive special assessment
The owners of a North York condominium say they are facing a $70,000 special assessment to fix their building's parking garage. '$70,000 is a lot of money. It makes me very nervous and stressed out of nowhere for this huge debt to come in,' said Ligeng Guo.
Police ID mom, daughter killed in Old Montreal; video shows person break into building before fatal fire
Police released the identities of the mother and daughter who were killed after a fire tore through a 160-year-old building in Old Montreal on Friday.
Frequent drinking of fizzy beverages and fruit juice are linked to an increased risk of stroke: research
New data raises questions about the drinks people consume and the potential risks associated with them, according to researchers at Galway University in Ireland, in partnership with Hamilton’s McMaster University.
'I screamed in shock and horror': Family faces deadly Vancouver hit-and-run driver during sentencing
The sentencing of the man who pleaded guilty in the deadly hit-and-run in Kitsilano two years ago began on Friday.
Vanderbilt takes down AP poll No. 1 Alabama 40-35 in one of college football's greatest upsets
Vanderbilt takes down AP poll No. 1 Alabama 40-35 in historic college football victory.