World energy prices forcing higher electricity rates in N.S. next year - Fuel adjustment will be 8.1%; overall increase will be 11.9%

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[{"type":"text","content":"\n\n\n\nTSX:NSI.PR.C\n\n\nTSX:NSI.PR.D\n\n\nHALIFAX, May 27 /CNW/ - Volatile world prices for coal, oil and natural\ngas have forced Nova Scotia Power to seek an increase in electricity prices\neffective January 1, 2009. Rates have not changed since April 2007 and will\nremain frozen through the end of 2008.\n\n\nThe company today filed an application with the Nova Scotia Utility and\nReview Board (UARB), requesting a fuel adjustment of 8.1% and 3.8% for\nreliability, customer service improvements and recovery of previously approved\ncosts.\n\n\n"We know higher rates are not welcome news for our customers but\nworldwide energy prices are making many of life's essentials more expensive -\nfrom the gasoline we put in our cars to the heating oil we put in our\nfurnaces," said Ralph Tedesco, President and Chief Executive Officer of Nova\nScotia Power. "Our strategy for buying fuel has helped shield customers and\nallowed Nova Scotia Power to hold prices steady through the end of this year.\nHowever, as we've recently seen with other businesses, higher costs for fuel\nare putting upward pressure on our prices."\n\n\nThe cost of fuel used to produce electricity in Nova Scotia will be\n$90 million higher in 2009. Since electricity rates were last set in Nova\nScotia, the price of fossil fuels has shot up. The price of coal has doubled,\nfrom about $60 to about $130 per tonne. The price of oil has increased from\nabout $60 to about $130 a barrel. Natural gas is up from less than $8 to about\n$12 per mmBTU.\n\n\nThe average overall increase for Nova Scotia Power customers will be\n11.9%, effective January 1, 2009. The increase for residential customers will\nbe 12.1%. The application filed today also includes revenues for:\n\n\n- investments to enhance reliability and customer service, including tree\n trimming;\n- energy efficiency and conservation programs; and\n- other expenses previously approved by the Utility and Review Board.\n\n\n"As part of our cleaner, greener strategy, Nova Scotia Power is\nsubstantially increasing sources of renewable generation and assisting\ncustomers with conservation and energy efficiency," said Mr. Tedesco. The\ncompany has signed fixed-price contracts to increase wind generation by five\ntimes - enough to serve 80,000 homes - and is launching energy efficiency and\nconserva...

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