Nova Scotia Power responds to electricity review and commits to rate stability
HALIFAX, NS – Nova Scotia Power is implementing a four-year plan to minimize changes in rates for customers through to 2019.
NS Power has been working hard to stabilize power rates, while at the same time completing the most ambitious transition to renewable energy in Canada. Having participated in the government electricity review consultation, and through conversations we have each and every day with our customers, we understand that customers need stable and predictable rates in Nova Scotia within the context of providing more sustainable forms of electricity generation.
“We have listened to what our customers have told us. We have heard from individuals and from families, from small businesses to large industrial customers, and now from the government of Nova Scotia,” said NSP President and CEO Bob Hanf.
“Nova Scotians have made the investment, and our employees have done the hard work, that allows us to put forward a plan for rate stability. Our customers will have stable, predictable and affordable electricity pricing that they can depend on and budget around.”
We’ve managed our expenses carefully. For most customers, including residential customers, the price of electricity did not go up in 2015.
The costs of providing electricity to Nova Scotians fall into two categories:
- Fuel expenses – including payments for independently owned generation, such as wind farms and COMFIT projects – which are governed by the Fuel Adjustment Mechanism.
- Non-fuel expenses – including labour and general expenses – which are set through general rate applications.
NS Power announced today that there will be no general rate application for non-fuel expenses for 2016. We are working hard to mitigate any non-fuel increases for 2017-2019, and will be able to confirm our plan for those years in early 2016.
We have presented information to the Utility and Review Board forecasting 2016 average fuel rates essentially mirroring 2015 fuel rates, with the possibility of a slight overall decrease for most customer classes, including residential customers. Under the Fuel Adjustment Mechanism, we will file a base cost of fuel application in early 2016 for the following three years (2017, 2018 and 2019). Based on current forecasts, Nova Scotia Power estimates that rates will only increase by 1-1.5% a year through that period.
NSP’s approach to rates, investments in diverse electricity sources, prudent fuel procurement, and strict corporate cost control have positioned the company to provide greater predictability and stability for customers. Also, changes announced by the Government of Nova Scotia, including the closure of COMFIT, reduce cost pressures. The Rate Stability Plan aligns with the direction provided by government in its Electricity Plan.
See the slide deck and read some frequently asked questions in our 2015 Rate Stabilization and Electricity Plan page.