Settlement will require Nova Scotia Utility and Review Board approval
HALIFAX, Sept. 19, 2011 /CNW/ - Nova Scotia Power (TSX: NSI.PR.D) and
customer representatives today announced a proposed settlement
regarding 2012 electricity rates.
If approved, the settlement will result in an average increase of
approximately five percent for all customers, effective January 1,
2012. For the average residential customer, the increase would be
approximately $6.00 per month. The settlement is a reduction in the
average increase of 7.2 percent proposed in NS Power's May rate filing.
General electricity rates in Nova Scotia last increased on January 1,
"We have worked with customer representatives to reach an agreement that
balances the increased cost of making electricity in Nova Scotia with
everyone's desire to keep rates as low as possible for customers," said
Rob Bennett, President and CEO of Nova Scotia Power. "We want to
acknowledge the dedicated efforts of stakeholders who worked tirelessly
on behalf of our customers to help reach this positive outcome."
Nova Scotia Power and customer representatives have agreed to defer
recovery of any fixed costs resulting from uncertainty in the pulp and
paper industry. Those costs would be recovered in 2013 or as part of
the next general rate application.
The settlement includes a change to Nova Scotia Power's regulated rate
of return, or Return on Equity (ROE). The company's ROE will now be 9.2
per cent for rate-making purposes, with an allowed range of 9.1 to 9.5
Parties to the settlement agreement include: the Consumer Advocate, the
Avon Group, Halifax Regional Municipality, the Small Business Advocate,
the Municipal Electric Utilities of Nova Scotia, and Nova Scotia Power.
The 2012 settlement proposal will be presented to the Nova Scotia
Utility and Review Board (UARB) for consideration. The Board will
determine next steps as part of its approval process.
This press release contains forward-looking information and
forward-looking statements which reflect the current views of Nova
Scotia Power with respect to the Company's objectives, plans, financial
and operating performance, business prospects and opportunities.
Wherever used, the words "would", "will", and similar expressions
identify forward-looking statements and forward-looking information.
Forward-looking statements and forward-looking information should not
be read as guarantees of future events, performance or results, and
will not necessarily be accurate indications of whether, or the times
at which, such events, performance or results will be achieved. Nova
Scotia Power disclaims any intention or obligation to update or revise
any forward-looking information or forward-looking statements, whether
as a result of new information, future events or otherwise, except as
required under applicable securities laws.
About Nova Scotia Power
Nova Scotia Power (TSX-NSI.PR.D) has provided electricity to Nova
Scotians for more than 80 years. The company provides electricity
generation, transmission and distribution services to almost 490,000
customers in the province. Nova Scotia Power is transforming its
generation to reduce its carbon footprint and enable new economic
activity by replacing fossil fuels with renewable energy sources. The
company has $4.0 billion in assets and approximately 2,000 employees
who are dedicated to safe work, enhanced customer service, system
reliability and serving their communities. Nova Scotia Power is the
largest wholly-owned subsidiary of Halifax-based Emera Inc., whose
shares are listed on the Toronto Stock Exchange and trade under the
SOURCE NOVA SCOTIA POWER INC.
For further information:
Nova Scotia Power
(902) 428-6474 (P)
(902) 229-3147 (C)