Nova Scotia Power (TSX: NSI.PR.D) announced today that the company does
not plan to file a general rate application this year for higher
electricity rates in 2015. The company is also proposing no fuel rate
increase for 2015.
“We know price certainty, stability and affordability are important to
our customers,” said Bob Hanf, President and Chief Executive Officer.
“Customers have also asked us for clarity on where rates are heading –
particularly business customers who are preparing their 2015 budgets.
It’s important to provide certainty on base rates, and indicate our
objective for no rate increases in 2015.”
Since the Nova Scotia Utility and Review Board approved a two-year Rate
Stabilization Plan in 2012, Nova Scotia Power has implemented internal
productivity initiatives to significantly reduce operating costs. Focus
on cost management remains a priority for the company in 2014.
“We are focused on affordability for customers,” said Hanf. “The Rate
Stabilization Plan has allowed the company to reduce costs while
improving service and reliability. We continue to address the challenge
of rising fuel costs.”
Nova Scotia Power has initiated discussions with customer
representatives regarding rate recovery of outstanding fuel costs, and
has proposed no fuel cost increase for 2015, while managing these costs
for our customers. Since January 2013, Nova Scotia Power has incurred
approximately $95 million more in fuel costs than those estimated and
included in rates pursuant to the Fuel Adjustment Mechanism. Additional
fuel costs have been primarily driven by constraints in the supply of
natural gas in Nova Scotia.
Electricity rate adjustments in Nova Scotia occur through either a
general rate application or the Fuel Adjustment Mechanism (FAM) process.
The FAM ensures that customers pay only the actual, prudently incurred
costs of fuel used to make electricity. Applications under either
mechanism are adjudicated by the Utility and Review Board through a
public process.
About Nova Scotia Power
Nova Scotia Power Inc. is the largest wholly-owned subsidiary of Emera
Inc. (TSX-EMA), a diversified energy and services company. Nova Scotia
Power provides 95% of the generation, transmission and distribution of
electrical power to 500,000 customers in the province. The company is
focused on new technologies to enhance customer service and reliability,
reduce emissions and add renewable energy. Nova Scotia Power has 1,600
employees and $4.1 billion in assets. Learn more at www.nspower.ca.
Copyright Business Wire 2014