Closing Arguments Regarding Fuel Adjustment Mechanism - Agreement in Principle Discussed at UARB

    HALIFAX, Nov. 13 /CNW/ - Closing arguments will be presented today to the
Nova Scotia Utility and Review Board regarding an agreement between Nova
Scotia Power and several stakeholders regarding implementation of a Fuel
Adjustment Mechanism (FAM).
    The following stakeholders are party to the agreement: Stora Enso Port
Hawkesbury, Bowater Mersey Paper Company, the Municipal Electric Utilities
Co-operative of Nova Scotia, Canadian Manufacturers and Exporters, and several
major employers in the province known before the UARB as Avon Valley et al.

    Highlights of the FAM agreement include:

    - Incentive - if fuel costs increase or decrease up to $50 million
      dollars in any given year, 90 per cent of that amount will be passed on
      to Nova Scotia Power's customers. 10 per cent of the additional cost or
      savings is the responsibility of the company, to a maximum amount of
      $5 million annually. Fuel savings or cost changes in excess of
      $50 million annually accrue to customers.
    - Details for reporting fuel information will be developed in 2008.
    - Beginning January 1, 2009, Nova Scotia Power's return on equity would
      be set at 9.35 per cent, with an allowed earnings band of 9.1 to
      9.6 per cent. No other change to ROE for the first two years of the FAM
      being in place.

    Pending approval by the Utility and Review Board, the Fuel Adjustment
Mechanism would be in place January 1, 2009.

For further information:

For further information: Glennie Langille, Nova Scotia Power, (902)

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Nova Scotia Power Inc.

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