Premier advises NSP to withdraw rate increase proposal
Posted Aug 24, 2011 06:00:53 AM.
This article is more than 5 years old.
As part of his mission to try to save the NewPage paper mill in Port Hawkesbury, Premier Darrell Dexter is calling on Nova Scotia Power to reconsider its request for yet another rate hike.
NewPage says its Port Hawkesbury mill has been unprofitable for over a year, and the company is blaming part of that on rising electricity rates. The mill is set to shut down indefinitely next month. The shut down would mean the loss of thousands of jobs in Eastern Nova Scotia
Premier Dexter is hoping a change of heart by the province’s biggest utility may help save one of the province’s biggest employers. Dexter says he wants Nova Scotia Power to drop its plans to look for an increase in its rate of return on investment at power rate hearings in September.
“Nova Scotia Power should know that this is not the time to be asking for an increase in return on equity,” Dexter tells Global News. “I think that’s inappropriate given everything that we know and my advice to them would be to withdraw it.”
Nova Scotia Power spokesman David Rodenhiser says the company shares the Premier’s concerns about the pulp and paper sector.
“We’re meeting Thursday morning with customer representatives to continue our discussions on a possible multi-year rate plan that would smooth increases in electricity prices,” he says. “Return on equity will be one of the issues that we want to talk with all of our customer representatives about.”
Premier Dexter will be meeting with local politicians and union workers in Port Hawkesbury Wednesday. He will hold a news conference after the meeting to provide an update on the situation.
