Settlement regarding 2009 electricity rates in Nova Scotia
HALIFAX , NS , September 15, 2008 (EMA-TSX)-- An agreement has been reached with customer representatives regarding 2009 electricity rates, Nova Scotia Power announced today.
The settlement agreement would result in an average rate increase of 9.4% for most Nova Scotia Power customers, effective January 1, 2009 . Electricity rates in Nova Scotia last increased on April 1, 2007.
The settlement agreement is subject to review and approval by the Nova Scotia Utility and Review Board, as part of a hearing process that starts today.
“We appreciate the contribution by customer advocates in achieving this agreement,” said Rob Bennett, President and CEO of Nova Scotia Power. “With certainty about rates for 2009, the Company can focus on reliability and customer service, as well continuing to add new sources of renewable energy which will help with price stability for the long term.”
The agreement means the average electricity bill in Nova Scotia will increase by about $9 per month, starting next January. Monthly bills for customers who heat with electricity will increase an average of more than $14 per month.
Most of the 2009 rate adjustment will help pay for higher world commodity costs for coal and other fuels used to make electricity in Nova Scotia . The remainder is primarily for customer service and reliability improvements, including hiring and retaining skilled tradespeople.
The settlement includes acceptance of a Fuel Adjustment Mechanism (FAM) to start on January 1, 2009, although there would be no FAM-related rate adjustment before 2010. It also reduces the Company's return on equity (ROE) to 9.35% from 9.55%.
The agreement includes provision for Nova Scotia Power to spend more in 2009 on tree trimming. The company has agreed to a reduction of $12 million less than originally requested for operating and financial expenses, and has agreed to amortize costs for conservation and efficiency programs over a longer period of time.
Parties to the settlement agreement include: Nova Scotia Power, the Consumer and Small Business Advocate, NewPage Port Hawkesbury, Bowater Mersey Paper Company, the Avon Group, the Canadian Manufacturers and Exporters, the Municipal Electric Utilities of Nova Scotia Cooperative, and HalifaxRegionalMunicipality .
Nova Scotia Power had announced in late May that it would request an average 2009 rate adjustment of 11.9%, driven by the large increases in world fuel prices since Nova Scotia electricity rates were last adjusted in 2007.
About Nova Scotia Power
Nova Scotia Power Inc. is the largest wholly-owned subsidiary of Emera Inc. (TSX-EMA), a diversified energy and services company. Nova Scotia Power provides more than 95% of the generation, transmission and distribution of electrical power to 480,000 customers in the province. The company is focused on new technologies to enhance customer service and reliability, reduce emissions and add renewable energy. Nova Scotia Power has 1,700 employees and $3 billion in assets.
For more information contact:
Margaret Murphy
nspower.ca
428-6436