HALIFAX, May 5 /CNW/ - Nova Scotia Power met with customer
representatives today (May 5) to discuss a plan that would stabilize
growth in electricity prices for three years. The proposed Rate
Stabilization Plan would hold rate increases to four percent per year
for 2012 to 2014 for each customer class.
"By using some short-term deferrals of expenses, we can smooth price
changes for customers over the next three years," said Rene Gallant,
Vice President of Regulatory Affairs, Nova Scotia Power. "We strive to
ensure that electricity prices are as low as possible for our
customers, and that any price changes are as manageable as possible.
This plan will help."
Last month, NS Power initiated a public discussion with customer
representatives aimed at developing a multi-year approach to smooth
increases in electricity rates through 2014. The Rate Stabilization
Plan builds on that effort.
In order for a rate change to take effect on January 1, 2012, Nova
Scotia Power will be required to file a General Rate Application with
the Nova Scotia Utility and Review Board (UARB) later this month. Nova
Scotia Power has not yet made a final decision to make such a filing.
General rates were last adjusted on January 1, 2009. Nova Scotia Power
has been able to avoid filing a general rate application for three
years, thanks to prudent management of expenses, tax credits from
renewable energy projects, and the ability of the UARB to adjust fuel
expense recovery through the Fuel Adjustment Mechanism (FAM).
"Our customers have benefitted from Nova Scotia Power being able to
avoid a general rate application for three years," Mr. Gallant said.
"However, since 2009, we've made substantial investments in
infrastructure, reliability improvements, and recruiting and retaining
skilled workers. Those investments haven't been accounted for in rates,
and coal prices are continuing to climb."
Using current rates, 2012 revenues would be $94.4 million less than
forecasted requirements of $1.34 billion. Without the Rate
Stabilization Plan, NS Power is forecasting average increases in
general rates of 9 percent in 2012, four percent in 2013 and two
percent in 2014. The Plan proposes to defer recovery of fuel cost
increases for three years. Recovery of deferred costs would begin in
If approved by the UARB, new general electricity rates would take effect
Jan. 1, 2012.
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", "may", "will", "anticipate",
"intend", "expect", "estimate", "plan", "believe" 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)