Nova Scotia Power rate hike application includes bonuses
Posted Aug 19, 2011 06:52:07 AM.
This article is more than 5 years old.
Nova Scotia Power continues to impress investors while angering customers as it prepares for another round of rate hearings at the Utility and Review Board.
At issue is a proposed increase that has nothing to do with the cost of generating or transmitting electricity.
The monopoly power company wants to pass the cost of incentive awards on to its ratepayers.
Non-unionized employees at Nova Scotia power get $5.5 million dollars in incentive awards, and the utility’s applying to have customers pay for half of that. NSP is also out to increase its guaranteed return on equity from 9.35% up to 9.6%.
Provincial PC leader Jamie Baillie says Nova Scotians are already paying more for everything else and shouldn’t have to shoulder this kind of hike.
“I don’t think they should be asked to bite the bullet and pay more when we have an economy as soft as it is, when incomes are stagnant but costs are going up,” said Baillie on The Rick Howe Show. “People want to know that when they pay their electricity bill that it’s going for electricity, and that’s only common sense.”
Baillie isn’t opposed to the bonuses, but says shareholders should cover the whole cost.
Nova Scotia Power is applying for an average 7.3 per cent rate hike.
