Consultant’s report does not support NSP rate increase
Posted Aug 10, 2011 10:22:21 AM.
This article is more than 5 years old.
A consultant’s report is not supporting Nova Scotia Power’s request for a rate increase based on the claim that more severe weather conditions have increased repair costs.
Liberty Consulting Group says it has looked at the data and doesn’t agree that changing weather conditions justify the increase to rate payers.
The utility is looking to increase its storm repair budget by $3.7 billion and has asked for a rate hike between 7.3 per cent and 9.1 per cent.
Tory leader Jamie Baillie says these costs should be absorbed by the stakeholders, pointing to his career with the Credit Union.
“We would have our power go out for days at a time on occasion like everybody else,” Baillie told News 95.7, Wednesday. “We did not get to charge our customers more when that happened. That was a cost that was born by the company and ultimately by the shareholders of the company. That is the way it is in the business world. That is the way it should be for Nova Scotia Power as well.”
Liberty’s review of the company’s expenses comes at the request of the Utility and Review Board’s hearing.
The report, however, did agree with NSP’s rate increase request for the purpose of increasing the tree-trimming budget by $3.4 million annually.
Consumer advocate John Merrick explains storm hardening the system is a legitimate cost.
“Vegetation management where the crews would come around and cut down the branches, where if they fell in a storm they would take down lines,” said Merrick. “They are expenses which are incurred to try to prevent outages.”
The report comes as the provincial Conservative Party launches a website where NSP customers can fill out a survey, ask questions and make comments about the upcoming rate hike.
The survey is available at www.letstalkrates.ca.
