Nova Scotia Power: Rates could rise 14 per cent by 2024 IG News

IG news Update,

A new proposal by Nova Scotia Power would increase electricity rates by about 14 per cent by 2024, despite efforts by the province to limit the increase.

According to the proposed settlement agreement, rate increases across all customer classes will average 6.9 percent in both 2023 and 2024, with further conditions added in 2024 and 2025 to “recover historic low-recovery fuel costs.” The proposed settlement addresses both fuel and non-fuel rates, which is in line with the provincial legislative cap of 1.8 per cent of the total approved for 2023 and 2024.

The agreement also includes a storm rider for the years 2023-25, “to provide clarity about cost recovery for major storms and extreme weather events in the future,” as well as a demand side management rider. “To support initiatives to increase efficiency in” Help reduce energy costs for Nova Scotia and customers.

The proposed storm rider would allow NS Power to apply to the NSUARB to recover costs for severe weather events from customers, as well as recovery assistance to the extent of $10.2 million in 2023 and $10.4 million in 2024 and 2025, respectively. Will be allowed to apply for. Storm Rider is expected to be finished after any 2025 storm costs are recovered.

In the General Rate Application (GRA), NS Power proposed a customer charge of $22 per month through the end of 2024 “to help ensure the proper alignment of its fixed and variable costs”. According to the utility, the increase “will bring Nova Scotia in line with other Canadian jurisdictions.”

The settlement agreement will charge a small fee of $19.17 per month for residential customers and $21.28 per month for small business customers.

The settlement allows NS Power to apply to the Nova Scotia Utility and Review Board (NSUARB) to reduce costs during the “test years 2023 and 2024”, subject to review and decision by the Board to defer any costs. is proposed.

The process of defining the scope of the Decarbonisation Deferral Account is also underway, wherein a report and recommendation will be submitted to the NSUARB for approval by June 30, 2023.

The agreement also confirms a revised earnings sharing mechanism for the utility as well as the withdrawal of NS Power’s request for a moratorium on the GRA. According to the agreement, NS Power is required to file a cost of service study and line loss study before the utility is eligible to file its next GRA, or by December 31, 2025.

reach agreement

The suit pertains to NS Power’s 2022-2024 GRA filed in the NSUARB on January 27. The settlement comes after the NSUARB approved an extension for NS Power to file a closing submission as part of its 2022-24 GRA.

The utility noted that the GRA was subject to an exhaustive regulatory process, which included 700 information requests and nine days of oral hearings with more than 1,900 questions for NS Power, resulting in 71 undertakings.

The originally proposed rate was thwarted by new legislation from the provincial government introduced earlier this fall.

On October 19, the Progressive Conservatives introduced Bill 212, an act to amend the Public Utilities Act, legislation that would increase rates charged by NS Power, excluding fuel costs. The bill became law on 9 November.

NS Power has already entered into agreements with interventionists Eastlink, Rogers and Explorenet on pole attachment rates, according to a letter issued by the utility on Thursday.

A proposed settlement agreement has been reached between Nova Scotia Power and key stakeholders representing customers. It now goes to the Nova Scotia Utility Board (NSUARB) and Review Board for approval.

NS Power informed the NSUARB on Thursday that the GRA has reached a comprehensive settlement agreement with Consumer Advocate, Small Business Advocate, Industrial Group, Dalhousie University, Ecology Action Center, The Affordable Energy Coalition and Municipal Electric Utilities (MEU).

The utility provided copies of the agreement with Port Hawkesbury Paper LP, indicating that “it was not in a position to note its support for the settlement agreement, to which it was not a party.” Meanwhile, Freeman Lumber told NS Power that they declined to take any sides on the deal.

According to NS Power, EfficiencyOne advised that “given the discrete nature of its intervention in the GRA, it does not appear appropriate to sign a broad-based settlement agreement, but it does not intend to enter any position.” contrary to the terms of the agreement.

As part of the agreement, the MEU now has the mandate to provide a “narrow-scoped closing statement on matters with respect to open access transmission tariff capacity-based ancillary services … and wholesale market backup/top-up service tariff GHG credits”. There will be opportunity. After giving feedback, NS Power says that the NSUARB will take a final decision on the matters.

NS Power has also requested that the NSUARB prepare a program to expedite the process “so that the rates can be implemented by January 1, 2023.”

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