Mixed political reaction to lower power rate increase
Posted Sep 20, 2011 05:08:25 AM.
This article is more than 5 years old.
While the Tories are calling it a victory for consumers, the decrease in Nova Scotia’s latest rate increase application is being likened to a shell game by the Liberals.
“They come in, put a large number out in front of us. Then scale back a bit and we’re supposed to be happy,” said Liberal leader Stephen McNeil during the Rick Howe Show, Monday.
“I’m absolutely convinced that that’s what we’re looking at,” continued McNeil. “This is a public utility. If you actually believe you need 7.2 per cent, then justify it. Don’t come in and say, ‘Oh sorry. We were just kidding. Now we’re going to reduce it to 5 and you should be happy with that.'”
Nova Scotia Power announced Monday it is now asking for an average increase of five per cent for all customers, effective Jan. 1, which would add approximately $6 per month to the average residential customer’s bill.
NSP was originally asking for an increase of 7.2 per cent.
Leaders for all three political parties were prepared to speak during Monday’s hearing, but the announcement prompted an adjournment of the Utility and Review Board’s hearing until Wednesday.
McNeil is urging the regulator not to accept any rate increase.
Instead he’s calling on the UARB to order a performance review of NSP’s operations to see how the company is spending it’s money.
The corporation is making other concessions in its settlement.
NSP agreed to defer recovery of any fixed costs resulting from uncertainty in the pulp and paper industry. Those costs would be recovered in 2013 or as part of the next general rate application.
The company is also seeking a smaller increase in profits or return on equity, of 9.2 per cent instead of 9.6 per cent.
Also, the cost of executive bonuses will be covered by shareholders and not ratepayers.
“Nova Scotian can claim a little victory, about rising power rates, because those bonuses are coming out and that request for higher profits is gone,” said Conservative leader Jamie Baillie. “Both of those things we’ve been calling for all summer, and they’re a step in the right direction.”
But Baillie said he wants such concessions to become the norm. He’s calling for the legislature to assemble in order to pass legislation to that effect.
Premier Darrell Dexter said the concessions are a welcome measure, but puts the blame of high power rates on fossil fuels.
