NS Power and customer representatives reach settlement on 2012 rates

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NS Power and customer representatives reach settlement on 2012 rates

September 19, 2011

Settlement will require Nova Scotia Utility and Review Board approval

HALIFAX, NS – Nova Scotia Power (TSX-NSI.PR.D) and customer representatives today announced a proposed settlement regarding 2012 electricity rates.

If approved, the settlement will result in an average increase of approximately five percent for all customers, effective January 1, 2012. For the average residential customer, the increase would be approximately $6.00 per month. The settlement is a reduction in the average increase of 7.2 percent proposed in NS Power’s May rate filing. General electricity rates in Nova Scotia last increased on January 1, 2009.

“We have worked with customer representatives to reach an agreement that balances the increased cost of making electricity in Nova Scotia with everyone’s desire to keep rates as low as possible for customers,” said Rob Bennett, President and CEO of Nova Scotia Power. “We want to acknowledge the dedicated efforts of stakeholders who worked tirelessly on behalf of our customers to help reach this positive outcome.”

Nova Scotia Power and customer representatives have 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 settlement includes a change to Nova Scotia Power’s regulated rate of return, or Return on Equity (ROE). The company’s ROE will now be 9.2 per cent for rate-making purposes, with an allowed range of 9.1 to 9.5 per cent.

Parties to the settlement agreement include: the Consumer Advocate, the Avon Group, Halifax Regional Municipality, the Small Business Advocate, the Municipal Electric Utilities of Nova Scotia, and Nova Scotia Power.

The 2012 settlement proposal will be presented to the Nova Scotia Utility and Review Board (UARB) for consideration. The Board will determine next steps as part of its approval process.

Forward-Looking Information

This press release contains forward-looking information and forward-looking statements which reflect the current views of Nova Scotia Power with respect to the Company’s objectives, plans, financial and operating performance, business prospects and opportunities. Wherever used, the words “would”, “will”, and similar expressions identify forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved. Nova Scotia Power disclaims any intention or obligation to update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.