HALIFAX, Feb. 5 /CNW/ - Today's decision by the Nova Scotia Utility and Review Board (UARB) on Nova Scotia Power's fuel cost and previously approved costs is balanced, said Nova Scotia Power President Ralph Tedesco.
The board approved a settlement agreement reached by a large group of Nova Scotia Power's customers that will increase electricity rates by 3.8 per cent overall and 4.8 per cent for residential customers.
"We know that any increase in the price of electricity is difficult for many of our customers," said Mr. Tedesco. "Today's decision puts us on the path to ensuring that only actual fuel costs are reflected in the price customers pay for electricity."
The decision means the UARB will oversee a process to develop a fuel adjustment mechanism (FAM). Pending approval by the board, the fuel adjustment mechanism will ensure customers pay no more than the actual price of fuel Nova Scotia Power uses to make electricity. The design and approval of a fuel adjustment mechanism will be conducted through a process established and run by the UARB.
"This is an important step to put in place a more open, transparent way of reflecting the actual cost of fuel in the price of electricity that our customers pay," said Mr. Tedesco.
Nova Scotia Power will carefully review the details of the board's decision and looks forward to participating in the UARB's timetable for establishing a FAM over the next several months.
"While there was unprecedented consensus among most of our customers in favour of a settlement agreement, we also note that the board recognized the concerns that others raised," added Mr. Tedesco. "Nova Scotia Power is looking forward to working constructively with all interested Nova Scotians in developing a better way for the UARB to deal with volatile fuel markets."
For broadcast use:
A balanced decision.
That's the view from Nova Scotia Power today on the rate decision announced today by the province's Utility and Review Board.
N-S-P's president and C-E-O Ralph Tedesco says any increase in price is difficult for many customers.
Effective April 1, overall rates will go up three-point-eight per cent, with residential customers paying four-point-eight per cent more.
The Utility and Review Board will now oversee work on establishing a fuel adjustment mechanism - which sets electricity rates based on the actual cost of fuel.