Nova Scotia Power rate cut cancelled by conservation surcharge

Some thought it sounded a little too good to be true – and it was.

A power rate cut proposed for residential customers won’t show up on your power bill because it’s being offset by a new surcharge.

Nova Scotia Power had proposed a 1.4 per cent rate cut to residential customers for 2010, based on projections for lower oil and natural gas costs.

It would have worked out to about $2.50 a month for a home that heats with electricity or $1.25 for everyone else.

But the Chronicle Herald reports, that will be totally wiped out by a new surcharge to fund energy conservation programs – which happens to be the same amount.

The residential surcharge will raise about $8 million from NSP’s 440,000 residential customers.

The rate cut and conservation surcharge both take effect Jan. 1.

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