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
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ex-tabloid publisher testifies he scooped up possibly damaging tales to shield his old friend Trump
As Donald Trump was running for president in 2016, his old friend at the National Enquirer was scooping up potentially damaging stories about the candidate and paying out tens of thousands of dollars to keep them from the public eye.
Here's why provinces aren't following Saskatchewan's lead on the carbon tax home heating fight
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
Montreal actress calls Weinstein ruling 'discouraging' but not surprising
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
Caleb Williams, Jayden Daniels and Drake Maye make it four NFL drafts with quarterbacks going 1-3
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.