Nova Scotia Power customers may get a break on rate increase

Photo Ed Halverson

By Rick Conrad

Nova Scotia Power customers may see less of an increase on their electricity bills.

The Nova Scotia government says it wants to help extend the time period that ratepayers have to cover a portion of the utility’s fuel costs.

That would mean a rate increase of 1.1 per cent instead of the planned seven per cent for residential customers and 13 per cent for industrial users, according to a news release Monday.

“If we did not take action, Nova Scotia Power would seek another large power rate increase this year,” said Tory Rushton, minister of natural resources and renewables. 

“While we would prefer no increase at all, we are proposing a solution that would mean a considerably smaller increase of about 1.1 per cent instead.”

The amount ratepayers owe for fuel costs is included in the utility’s fuel adjustment mechanism. Each year, it files a proposal with the Nova Scotia Utility and Review Board to recover its fuel costs. The board sets power rates based on those costs.

The government would buy $117 million of Nova Scotia Power’s outstanding $395 million fuel adjustment cost. It would get it back from ratepayers through their power bills over a 10-year period.

The government said it sent its proposal to the review board on Monday.  

Email: rickconradqccr@gmail.com