Rate Stability Plan

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Rate Stability Plan

We’ve been working hard to stabilize power rates, while at the same time completing the most ambitious transition to renewable energy in Canada.

2020-2022 Fuel Stability Plan

Nova Scotia Power has applied to the Nova Scotia Utility and Review Board (UARB) to implement a three-year fuel stability plan that, if approved, would hold average fuel rate increases for residential customers to 1.5% in 2020, 2021 and 2022.

Nova Scotia Power’s plan is subject to review and approval by the UARB. A hearing is planned for October, with a decision expected before the end the year.

 

Read below for information about our current 2017-2019 Rate Stability Plan and the Maritime Link Credit.

What is the 2017-2019 Rate Stability Plan?

To provide you with more predictable power rates, we worked with customer representatives to create a 2017-19 Rate Stability Plan. In each of the three years of the plan, residential electricity rates increased by 1.7%. This increase goes directly towards paying for renewable energy contracts and the fuel used to generate electricity.

The increase is in keeping with, or slightly below, projected inflation for 2017 to 2019. For the average household, the increase equates to $2.10. That figure varies based on an individual household’s electricity use. For example, larger homes with older appliances, or poor insulation, use more electricity, particularly during the winter months.

Power rates have been stable in Nova Scotia since 2014. Residential rates did not rise in 2015, and they went down slightly in 2016.

How has Nova Scotia Power stabilized rates?

We’ve been working hard to stabilize power rates, while at the same time completing the most ambitious transition to renewable energy in Canada. We’ve done this because customers have told us they want stable, predictable and affordable electricity pricing that they can depend on and budget around.

Across Nova Scotia Power, we’ve focused on that goal. Our investments in diverse electricity sources, prudent fuel procurement, and strict corporate cost control have allowed us to offer greater predictability and stability for our customers.

The 2017-19 Rate Stability Plan saw power rates for all customers increase on average 1.5% – slightly below projected inflation – in each of 2017, 2018, and 2019. For most customers, rates didn’t rise in 2015 and went down in 2016.

Rate changes in 2017 through 2019 vary by customer class, largely due to how much each class owes for unpaid costs for Efficiency Nova Scotia programming and fuel. This is particularly true for the Large General class of commercial customers.

Five years of rate stability

Customer Class
2015
 2016  2017  2018  2019 5 Year avg.
Residential 0%  -0.9%  1.7%  1.7% 1.7%
0.8%
Small General  -4.5%   -2.2% 1.8%
1.8%
 1.8% -0.3%
General Demand 0%  -1.3%  0.9%  0.9%   0.9% 0.3%
Large General  1.5%   0%  3.7%  3.7%   3.7% 2.5%
Small Industrial 0%  -1.8%  1.2%  1.2%   1.2%  0.4%
Medium Industrial 1.5%  0%  1.6%  1.6%   1.6% 1.3%
Large Industrial 1.5%  0%  1.4%  1.4%   1.4%  1.1%

Why are rates increasing?

Broadly speaking, Nova Scotia Power’s expenses fall into two categories governed by two separate regulatory processes:

  • Fuel costs: The fuels used to generate electricity, such as coal and natural gas, as well as renewable energy contracts. By law, these costs are a direct flow-through to customers, meaning Nova Scotia Power does not make money off of fuel. Fuel costs are governed by the Fuel Adjustment Mechanism.
  • Non-fuel costs: All other company costs, including labour, equipment and supplies. Non-fuel costs are set through General Rate Applications.

Because cost changes in electricity are being driven by renewable energy contracts and fuel costs, the 2017-19 Rate Stability Plan was submitted to the Utility and Review Board for approval under the Fuel Adjustment Mechanism. Nova Scotia Power committed to not file a General Rate Application in 2017 through 2019.

How does the Maritime Link factor into this?

The  2017-19 Rate Stability Plan includes integrating the first two years of Maritime Link costs into power rates. The Maritime Link is the subsea transmission line constructed between Newfoundland and Cape Breton, which will deliver hydroelectricity from Muskrat Falls in Labrador. The Maritime Link is central to NSP’s plan to achieve its legislated requirement of generating 40% of electricity from renewable resources by 2020.

Nova Scotia Power achieved a new record in renewable energy in 2015, with 26.6% of the electricity coming from renewable resources – beating the legislated requirement of 25%. As recently as 2007, only 9% of Nova Scotia’s electricity was renewable. By 2020, NSP is required by law to be at 40% renewable, and to have cut greenhouse gas emissions by 25% compared to 2010.

Maritime Link CREDIT

maritime link rebate

FORMER CUSTOMERS MAY APPLY HER FOR THE 2018 MARITIME LINK REBATE


The Maritime Link is part of a strategy to address the growing demand for more renewable energy. It will enable the transmission of clean, renewable and reliable electricity from Newfoundland and Labrador to Nova Scotia and beyond.

Our current approved rates for 2017–19 include the costs associated with the Maritime Link for 2018 and 2019. Due to a construction delay at the Muskrat Falls Generation Station in Newfoundland and Labrador, the block of renewable energy reserved for Nova Scotia will be delayed until 2020. As a result, customers will be refunded certain Maritime Link-related costs that had been previously factored into our rates.

The 2018 credit appeared automatically on electricity bills received in March or April of 2019. Current customers do not need to apply for the credit.

FORMER CUSTOMER Q&As

  

Q: What is the Maritime Link credit?

Q: Are former customers eligible for the rebate?

Q: How will I get my rebate?

Q: When will I get my rebate?

 

Former customers may access the 2017 rebate form here.