Review board OK's power rate hike for Nova Scotia
05.11.2008 21:02
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- Source: cbc.ca
Homeowners in Nova Scotia will pay about $9 more a month for electricity starting in January. The Nova Scotia Utility and Review Board announced Wednesday it has approved a deal to hike Nova Scotia Power customers' rates by an average of 9.3 per cent. The power company negotiated the agreement after discussions with its largest customers and consumer advocate John Merrick. "No question about it, it's going to be a significant increase for people to take," Merrick told CBC News. "But in light of fact that Nova Scotia Power has and will incur [cost] increases, unfortunately the reality is that has to be passed through." The hike means an average monthly increase of about $9 for residential customers, as of Jan. 1. The last rate hike was in April 2007. Merrick said NSP is facing rising costs in the long term for the fossil fuels it needs to generate electricity, so after a thorough review, the board found the rate hike was reasonable and justified. "I think the public should be reassured the result was as low as could have been accommodated even if it was a contested hearing running for weeks," said Merrick. The Affordable Energy Coalition disagrees. Legal aid lawyer Claire McNeil, spokeswoman for the umbrella group of non-profit organizations that advocate on behalf of low-income Nova Scotians, said power rates keep going up, but minimum wage and social assistance rates haven't kept pace. "People are still being faced with the choice to heat or eat. Despite programs being offered around heating costs, those are not going to address the problem for the most vulnerable consumers who have energy burdens that just aren't sustainable," she said. McNeil is calling on the government to review the decision made in the early 1990s to privatize the power company, saying Nova Scotians may not be able to afford a utility that makes a profit off electricity. Premier doesn't like hikePremier Rodney MacDonald said the province can't afford to make the utility a Crown corporation again. He's not a fan of the rate hike either. "No one wants to see this rate increase," he said. "I certainly don't. The government doesn't agree with it, but you know we have to deal with the realities of what's an arm's-length process, even if we're on the record against it." Before reaching its deal, Nova Scotia Power had asked for an average rate hike of 11.9 per cent. The review board also approved a fuel adjustment mechanism for 2010, which will allow Nova Scotia Power to change rates based on changing energy costs without going through a public hearing process. Merrick said the system will be closely monitored in the first few years to ensure the pricing formula is working properly. RelatedInternal LinksPower company, groups reach deal on rate hikeZap! Nova Scotia Power plans rate hikeExternal LinksNSUARB: Read the decision (pdf)(Note: CBC does not endorse and is not responsible for the content of external sites - links will open in new window) Consumer HeadlinesMaple Leaf appoints food safety chiefTrying to recover from a listeria outbreak at one of its meat plants, Maple Leaf Foods Inc. said Wednesday it has appointed a chief food safety officer.RRSP contributions rose 5.3 % in 2007: Statistics CanadaAlmost 6.3 million tax filers contributed to their registered retirement savings plans in 2007, up 1.6 per cent from 2006, Statistics Canada said Wednesday. 'Tis the season for cancelling corporate partiesCalgary party planners say companies are scaling back or cancelling Christmas gatherings because they don't want to be seen as being excessive in this shaky financial climate.Oil prices drop sharply as U.S. supplies increaseOil prices fell sharply Wednesday after the U.S. government's Energy Information Administration said stockpiles of distillates, such as home heating oil, increased by 1.2 million barrels, while gasoline supplies were up by 1.2 million barrels. New sticker poppies are catching onA new addition to the Royal Canadian Legion's poppy campaign aims to help keep the scared symbol of remembrance on the lapels of all Canadians. Consumer Life FeaturesECONOMYGeographyWorld's next great cities CONSUMERAuto salesHow to avoid car buyers' remorseSAFETYRecalls and AdvisoriesBLOGFood BytesTightening the belt before dinnerMOBILE TECHNOLOGYNotebook computersCheap versus chic laptopsCOMM-ODDITIESAuctionOzark cave owner turns to eBay in search of a bidderPeople who read this also read …
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