HALIFAX, NS – Nova Scotia Power filed a General Rate Application today (May 13) for the first time in three years, while continuing to work with customer representatives on a better way to address the rising cost of making electricity.
NS Power submitted its application to the Nova Scotia Utility and Review Board (UARB) in order to start the regulatory process that would lead to a public hearing in September. In the interim, the company continues open discussions it began with stakeholders last month aimed at making price changes more manageable for customers.
The General Rate Application filed today requests a revenue increase of 7.3 percent, averaged across all customer classes, effective January 1, 2012. For residential customers, the increase would be 7.1 percent – roughly $8 per month on average. Smaller increases are forecast for 2013 and 2014.
NS Power has publicly proposed a three-year plan that would hold price increases to 4 percent per year for 2012 to 2014. If discussions with customer representatives produce an agreement-in-principle for such a plan, NS Power will add it to the filing and request approval from the UARB.
NS Power has been able to avoid filing a General Rate Application for three years, thanks to prudent management of expenses, accelerated tax deductions from renewable energy projects, and the ability of the UARB to adjust fuel expense recovery through the Fuel Adjustment Mechanism. Of the many costs involved in providing electricity for Nova Scotians, fuel is the only one that has been adjusted since general rates were last set on January 1, 2009.
Since 2009, the company has made substantial investments in infrastructure, reliability improvements, and recruiting and retaining skilled workers. Those investments haven’t been accounted for in rates.
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”, “may”, “will”, “forecast”, “anticipate”, “intend”, “expect”, “estimate”, “plan”, “believe” 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.