Nova Scotia Power seeks 10 per cent rate hike and system to defer green energy costs

Nova Scotia Power's rate increases are proposed to take effect in three stages, beginning this August and then on Jan. 1 for the next two years.

Nova Scotia’s power utility is asking for an average rate increase for residential customers of 9.9 per cent over three years, with possible additional costs for storm damage.

Nova Scotia Power‘s increases for large industrial customers would be slightly over 10 per cent, while small and medium business tariffs would go up between 11 and just over 12 per cent over the same three-year time period.

The increases are proposed to take effect in three stages, beginning this August and then on Jan. 1 for the next two years.

The utility, a subsidiary of Halifax-based Emera Inc., is asking to keep its nine per cent profit margin as part of its plan, with provision to allow it to earn up to 9.5 per cent return on equity.

The application submitted to the province’s Utility and Review Board today also includes a request that the board create a mechanism to spread out the costs of the province’s transition away from coal-fired power to 80 per cent renewable electricity by 2030.

In addition, the utility is asking for a special charge on customers whogenerate their own electricity and sell it back to the grid, as of next month.

The potential costs for storm damage and an energy conservation program would be separate lines in customers’ bills if approved by the regulator.

In the case of storms, the utility would estimate the storm costs, but if major storms created unanticipated damage, then the power company would be able to apply to the regulator to recover those costs and it would be added to bills.