Nova Scotia Power seeks 10 per cent rate hike and system to defer green energy costs
Nova Scotia's power utility is asking for an average general rate increase for residential customers of 9.9 per cent over three years, with possible additional costs due to severe weather and energy efficiency costs.
Nova Scotia Power's increases for large industrial customers would be slightly over 10 per cent, while small and medium business tariffs would go up between 11 and just over 12 per cent over the same three-year time period.
The base rate increases are proposed to take effect in three stages, beginning this August and then on Jan. 1 for the next two years.
The application submitted to the province's Utility and Review Board Thursday also includes a request that the board create a mechanism to spread out the costs of the province's phasing out of coal-fired generation by 2030.
The accelerated depreciation costs for the coal plant closures would be about $370 million, according to estimates provided to reporters on Thursday. However, it's possible the utility can apply to federal and provincial governments to help reduce those costs.
Peter Gregg, the company's chief executive, told reporters the rate hikes and the deferral of the costs for the shift to renewables -- which he referred to as a "decarbonization deferral account" -- are needed to help the company embark on the biggest transition in its history.
"We're taking a system that took us approximately 50 years to build, and the challenge will be to transform that system in less than 10 years," he said.
Gregg said the rate changes will help the company meet government-regulated targets for cleaner energy, while meeting growing customer demand for electricity.
The details of how Nova Scotia Power would spread out its "decarbonization" program costs over time -- and how and when this might impact rates -- weren't provided, but Gregg said the winding down of coal-fired plants "is a cost issue that has to be dealt with."
"We believe it (the deferral fund) is a solid solution to deal with any kind of rate shock," he said.
Meanwhile, the potential costs for storm damage and an energy conservation program would become separate lines in customers' bills if approved by the regulator.
In the case of storms, the utility would estimate the potential costs, but if extreme storms caused unforeseen damage, then the power company would be able to apply to the regulator to recover those costs and it would be added to bills, Gregg said.
The utility, a subsidiary of Halifax-based Emera Inc., is asking to keep its nine per cent profit margin as part of its plan, with provision to allow it to earn up to 9.5 per cent return on equity.
"We're not asking for more than we need to run a reliable business that our customers can rely on," said Gregg.
The proposal also calls for a special fee for customers who generate their own power -- from sources such as solar and wind -- and sell it to the utility.
Gregg said this was because the utility was continuing to bear the costs of a reliable source of power to customers who are generating their own electricity. "It's an issue of fairness .... What we want to avoid is for customers who don't have an ability to generate their electricity to be covering the costs for customers who do have an ability to do it," he said.
This report by The Canadian Press was first published Jan. 27, 2022.
CTVNews.ca Top Stories
BREAKING King Charles' cancer treatment progressing well, says Buckingham Palace
King Charles III’s doctors are 'sufficiently pleased' with his cancer treatment and he is expected to return to public-facing duties, Buckingham Palace announced on Friday.
BREAKING Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
'Unacceptable': Trudeau reacts after AFN chief says headdress taken from plane cabin
After the Assembly of First Nations' national chief said her headdress was taken from an airplane cabin this week, Prime Minister Justin Trudeau called the incident 'unacceptable' and a 'mistake' on the part of Air Canada.
DEVELOPING Bird flu outbreaks: WHO weighs in on public health risk
The World Health Organization said on Friday that the current overall public health risk posed by H5N1 bird flu virus is low, but for those with exposure to infected birds or animals the risk of infection is considered low-to-moderate.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
From faulty kids' cribs to flammable kids' bathrobes, here are the recalls of the week
Health Canada issued recalls for various items this week, including kids’ bathrobes, cribs and henna cones.
Taylor Swift dons Montreal designer's dress in 'Fortnight' video
A pair of Montreal designers' work has now been viewed over 41 million times. Taylor Swift dons a Victorian throwback black gown in her latest music video, 'Fortnight', designed by UNTTLD due Simon Belanger and Jose Manuel Saint-Jacques.
'Too young to have breast cancer': Rates among young Canadian women rising
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
'Violation': CSIS had officer investigated after she reported a superior raped her
A CSIS officer's allegations that she was raped repeatedly by a superior in agency vehicles set off a harassment inquiry, but also triggered an investigation into her that concluded the alleged attacks were a “misuse” of agency vehicles by the woman.