Business
Nova Scotia Power files rate settlement proposal
Nova Scotia Power files rate settlement proposal.
About this update from Emera Incorporated
[{"type":"text","content":"\n\n\n\nHALIFAX, Jan. 22 /CNW/ - Nova Scotia Power announced that an agreement\nhas been reached to settle the company's 2007 rate application.\n\n\nThe agreement was filed today with the company's regulator, the Nova\nScotia Utility and Review Board (UARB). It has the support of almost all\nactive intervenors, including the Consumer Advocate.\n\n\nA central provision of the settlement is an agreement in principle that\nthe UARB should establish a fuel adjustment mechanism for Nova Scotia Power.\nSuch a mechanism will ensure that customer prices reflect the actual cost for\nfuel used to make electricity.\n\n\n\"With the price of fuel on worldwide markets continuing to be so\nvolatile, it's in everybody's interest that there be an open, transparent way\nto reflect in a timely manner the actual cost of fuel on the electricity bills\nof our customers,\" said Ralph Tedesco, President and CEO of Nova Scotia Power.\n\n\nPending approval by the UARB, the agreement provides for the following:\n\n- a $43 million increase in the overall revenue requirement for Nova\n Scotia Power, which is $38 million less than requested in the original\n rate application filed in October 2006;\n\n- The decrease in the revenue requirement reflects an approximately\n $20 million reduction in the company's fuel budget and the postponement\n of the phase in of higher depreciation costs. Additionally, up to\n $8 million of fuel costs may be deferred, depending on gas sales\n margins; and\n\n- effective April 1, 2007, an overall rate increase of 3.8 per cent, with\n residential customers seeing a 4.6 per cent rate increase.\n\nThe following elements of the original application were all agreed to\nunder the settlement:\n\n- rate base;\n- return on equity:\n- operating, maintenance and general expenditures; and\n- regulatory amortizations.\n\n\nThe agreement calls on the UARB to hold hearings no later than July 15,\n2007, to put in place a fuel adjustment mechanism.\n\n\n\"This settlement agreement involves a very broad cross-section of Nova\nScotians - the vast majority of our customers, covering the residential,\ncommercial and industrial sectors,\" said Mr. Tedesco. \"We're pleased to have\nworked together on achieving this constructive agreement.\"\n\n\n","length":2331,"tagName":"div"}]