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Nova Scotia Power Receives 2006 Rate Decision
Nova Scotia Power Receives 2006 Rate Decision.
About this update from Emera Incorporated
[{"type":"text","content":"\n\n\n\n\nHALIFAX, March 10 /CNW/ - The Nova Scotia Utility and Review Board (UARB)\nhas released its decision on Nova Scotia Power Inc.'s (NSPI) Rate Application\nfor 2006.\n\"A rate increase is never good news for our customers,\" said Chris\nHuskilson, Nova Scotia Power's President and Chief Executive Officer.\n\"However, higher worldwide energy prices are driving higher costs on all\nproducts, from the price of gas at the pump to what we pay to heat our homes.\"\n\nThe key elements of the UARB's decision include:\n\n- An average increase in rates for residential customers of 8.9% --\n which means $7 per month to the typical household;\n- A $61 million increase in Nova Scotia Power's annual revenues; and\n- NSPI's return on equity maintained at between 9.3% and 9.8%.\n\nIn its decision, the UARB incorporated the positive effect of the natural\ngas supply contract renegotiated by Nova Scotia Power in late 2005. This\nreduces the company's fuel budget by approximately $36 million to reflect\nexpected gas sales benefits.\n\"Now that we have a decision from our regulator, our job is to continue\nto listen to our customers, take action, and make the kind of changes our\ncustomers want to see - within the context of the dollars that are now\navailable,\" added Mr. Huskilson.\n\nThe UARB approved several million dollars in new investments for\ncustomers, including:\n\n- $4.0 million more for storm response, with the regulator recognizing\n improvements made by Nova Scotia Power since major storms in 2003 and\n 2004; and\n- $1.6 million in additional funding towards curbing excessive\n vegetation near power lines - the number one preventable cause of\n outages.\n\nThe UARB also approved funding to finalize Nova Scotia Power's\nconservation and energy efficiency plan for customers, subject to review.\nThe UARB noted numerous improvements Nova Scotia Power had made in fuel\nprocurement since the 2005 rate decision - including the company's first \nmulti-year contract for low-sulphur coal. However, the regulator determined\nthat a previous finding related to 2002 and 2003 fuel procurement carried over\ninto 2006. As a result, $15.7 million in fuel costs was disallowed for 2006.\nSignificantly, the Board noted that 2006 would be the final disallowance\nrelated to this issue.\n\"It's good to have closure on the past fuel procurement issue...