Re Nova Scotia Power calls for end to feuding with provincial government
David Amos<david.raymond.amos333@gmail.com> | Sun, Dec 18, 2022 at 10:53 PM |
| To: Peter.Gregg@nspower.ca, PREMIER <PREMIER@gov.ns.ca>, "blaine.higgs"<blaine.higgs@gnb.ca> | |
| Cc: "michael.macdonald"<michael.macdonald@thecanadianpress.com>, "Michael.Gorman"<Michael.Gorman@cbc.ca>, brian.gifford@eastlink.ca | |
Hey Former Attorney General Mikey Murphy say Hoka Hey to TJ Burke and the RCMP
Nova Scotia Power calls for end to feuding with provincial government
'We've got to stop this fighting,' Nova Scotia Power president says
Nova Scotia Power president Peter Gregg is calling for a truce with the provincial government. (Robert Short/CBC) Nova Scotia Power is calling for a meeting "as soon as possible" with the provincial government, saying a broken relationship threatens its ability to meet renewable energy targets — and its bottom line.
"We need to work closely with the provincial government, put our differences aside, work through the differences, whatever it takes," Nova Scotia Power president Peter Gregg said Friday.
"I do believe we have the same interests, but we've got to stop this fighting."
Gregg asked for the meeting in a Dec. 13 letter to the ministers of finance, environment and climate change and natural resources and renewables.
The company's call for a truce comes in the midst of a contentious regulatory hearing into its application for a 14 per cent power rate increase over two years.
Premier Tim Houston's office said Friday the government will decide in the new year whether it will meet with the utility.
"I will reiterate our government's position on power rates," spokesperson Catherine Klimek said in a statement. "We're committed to protecting ratepayers as best we can and ensure they have access to clean, reliable electricity at a fair price."
'Already difficult situation'
Gregg's blunt letter outlines Nova Scotia Power's objections to the conduct of the Houston government that includes Bill 212, the law that imposed a 1.8 per cent cap on non-fuel costs.
It was passed before the Nova Scotia Utility and Review Board had finished reviewing the evidence.
"We remain deeply concerned that political intervention in the regulatory process, lack of consultation with NSP on energy and climate policy and continued comments in the media not only highlight the lack of a productive working relationship, but they also risk further exacerbating an already difficult situation," Gregg wrote.
Bill 212 required the revenue generated by the increase to be spent only on upgrading the electrical grid and stops spending on renewable projects needed to transition off coal.
Bill 212 required the revenue generated by a 1.8 per cent increase to be spent only on upgrading the electrical grid and stopped spending on renewable projects needed to transition off coal. (Andrew Vaughan/The Canadian Press)
The company paused work on large-scale battery storage, a wind-power procurement and upgrading the grid connection with New Brunswick, a first step in the Atlantic Loop — a regional energy corridor.
"We are concerned that there is a disconnect between what the government would like to achieve in their climate plan and Bill 212 which restricts the investments the utility can make in order to help facilitate the achievement of the goals," he wrote.
Nova Scotia Power is supposed to close its coal-fired generation plants by 2030, when 80 per cent of its electricity must come from renewable sources.
"It doesn't seem achievable at this point," Gregg said. "I'm not confident we can reach that.
"Can I get myself to a place that we could ultimately do it? Yes. But again … we need to be shoulder to shoulder with the province on this."
Credit rating crash will cost up to $30M a year
Another source of friction is the credit rating downgrade triggered by the rate cap.
Nova Scotia Power says the company will pay up to $30 million more in higher interest payments annually once existing debt is refinanced.
"The NSP team made every effort to advise your government that the unprecedented interference into an independent regulatory process would result in the credit downgrade that has now happened," Gregg wrote.
Premier Tim Houston's office said on Friday the government will decide in the new year if it will meet with Nova Scotia Power, reiterating that the priority is 'protecting ratepayers.' (Robert Short/CBC)
The province is unapologetic, saying the company can take lower profits.
Gregg called that misleading since, like every other regulated utility, profits are set by a regulator to attract money needed for capital projects. He said Nova Scotia Power has spent $3.7 billion on its electrical system in the last 12 years.
"The expectation of a reasonable return for investors is what allows for the raising of capital at the lowest possible cost," Gregg wrote.
The province has shown no interest in peace. It accused the company of greed and incompetence this week in a closing submission in the rate case.
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PO Box 910 â— Halifax, Nova Scotia â— Canada â— B3J 2W5
1 of 3
December 13, 2022
Ministers Rushton, MacMaster and Halman,
On behalf of the Nova Scotia Power (NSP) team and our customers, I am requesting a meeting
to discuss the very important issues facing our province. I know we have a shared commitment
to doing the right thing for Nova Scotians, not only today but into the future. However, we
remain deeply concerned that political intervention in the regulatory process, lack of
consultation with NSP on energy and climate policy and continued comments in the media not
only highlight the lack of a productive working relationship, but they also risk further
exacerbating an already difficult situation. In the face of the climate crisis and the important
work ahead, it’s in the best interests of Nova Scotians if we find solutions together.
As you know, Bill 212 directly resulted in a strong response from capital markets and
extraordinary credit downgrade for NSP, directly and indirectly imposing additional costs on NSP
customers. Leading up to the passage of Bill 212, the NSP team made every effort to advise your
government that the unprecedented interference into an independent regulatory process would
result in the credit downgrade that has now happened. It is estimated that the downgrade will
cost Nova Scotians $20-30 million annually once all existing debt is refinanced.
Unfortunately, this situation is not stabilized and any further political interference continues to
present additional risk and could lead to more actions from rating agencies and more
unnecessary costs for customers.
I’d also like to address recent comments in the media by Minister Rushton. Suggesting that NSP
should simply use “profit†to cover the increased costs resulting from Bill 212 is misleading. This
is not the way costs are managed in investor-owned regulated utilities. Consistent with every
single regulated utility in North America, all costs are recovered in customer rates, including
costs that are imposed by government actions, like those associated with Bill 212.
It is important to understand that as a rate-regulated, cost of service utility, our business is
appropriately held to a standard by the regulator that ensures every decision and cost is in the
best interest of customers. This is unlike almost any other private company, including power
developers and independent power producers in the province.
Any return to shareholders is set by the regulator at a level that is considered “reasonable†with
the goal to minimize costs to customers while still enabling the attraction of the capital needed
for investment in the system. The capital investments we make, the costs we incur, and any
profit earned are scrutinized for reasonableness by the regulator. Any return that is paid to �
PO Box 910 â— Halifax, Nova Scotia â— Canada â— B3J 2W5
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shareholders is not guaranteed, it must be earned through prudent management of costs, and
this is an integral part of the rate-setting process done by the regulator.
The expectation of a reasonable return for investors is what allows for the raising of capital at
the lowest possible cost, and this is what then enables us to invest in the system and to build a
modern resilient grid that will facilitate the adoption of more renewables, increase reliability for
customers, enable the closure of coal units and invest in new technologies -- all at the lowest
cost for customers.
Just as a steady income is required for an individual to obtain a mortgage, a predictable return is
required for a utility to raise capital. Without that return, investors will not provide the capital
necessary to operate and improve the system.
Over the past twelve years, NSP has invested a total of $3.7 Billion of capital in the electricity
system of the province. That is over $310 million invested in the system each year to benefit our
customers. This is level of investment that takes place when investors have confidence in our
company and in the independent regulator, and it is an amount that far exceeds the reasonable
‘profit’ set and controlled by the independent regulator.
We understand that no one wants to see an increase in electricity rates but it’s a reality given
the need to invest in a cleaner and more resilient energy system. It is also a reflection of the
current economic conditions, where the combined impacts of high global fuel prices and
inflation are driving the costs higher in all jurisdictions. The current General Rate Application
before the regulator is the first in ten years. It’s a critical time at the utility and the political
intervention of Bill 212 just delays needed investment and creates a “bow wave†of costs down
the road for customers, meaning that in future the costs and necessary rate increases will be
higher than if we tackle these challenges together now.
The NSP team works incredibly hard for Nova Scotians each and every day. We’ve been
executing on a strategy to build a greener energy system in NS for almost 20 years – it’s not just
what we do, it’s part of our culture. While the Government’s climate plan has a lot of the right
ideas, as the owners and operators of the province’s energy grid, we have an important role to
play in Nova Scotia’s energy transition. This is a role that we take very seriously and it's a reality
that extends beyond the issues of the day. We are concerned that there is a disconnect between
what the government would like to achieve in their climate plan and Bill 212 which restricts the
investments the utility can make in order to help facilitate the achievement of the goals. �
PO Box 910 â— Halifax, Nova Scotia â— Canada â— B3J 2W5
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There is important and urgent work ahead for Nova Scotia. We need your government to
engage with us directly in a more positive and productive way as we move forward. We want to
work constructively with you and your colleagues to develop meaningful, long-term, and
enduring solutions for the province. We can achieve better outcomes for customers if we work
together. That’s what Nova Scotians expect of both of us.
I respectfully ask that we meet as soon as possible.
Yours truly,
Peter Gregg
President & CEO
Nova Scotia Power
Cc: Premier Tim Houston
Deputy Minister for NRR
Deputy Minister of Finance
Deputy Minister of Environment and Climate Change
ABOUT THE AUTHOR
Nova Scotia government lashes out at Nova Scotia Power — again
Houston government doubles down on criticisms of utility in closing submission to regulators
The province used the filing to justify its imposition of a 1.8 per cent rate cap on non-fuel costs, accusing the company of gouging ratepayers while providing unreliable service.
The Nova Scotia Utility and Review Board is deciding on a proposed rate settlement reached between the company and representatives of major customer groups after the provincial government imposed the rate cap through Bill 212.
In its 19-page closing submission to the board, the Department of Natural Resources and Renewables said the company was "delinquent" in failing to adequately trim trees to keep fallen branches from taking out power lines during storms.
"The impact of NSP's failure to sufficiently invest in vegetation management was keenly felt by ratepayers following Hurricane Fiona, which struck the evening the [general rate application] hearing concluded. Thousands of Nova Scotians were left without power for days or weeks," the department said.
Nova Scotia Power has said the rate cap will leave it $70 million short of what it needs to run the utility and earn its guaranteed nine per cent rate of return.
Premier Tim Houston has called for the Nova Scotia Utility and Review Board to reject the settlement agreement reached between Nova Scotia Power and customer group representatives. (Brian MacKay/CBC)
The province accused the company of sacrificing ratepayers for profits.
"There is no reasonable justification to allow NSP to receive greater profits when Nova Scotians are facing significant inflationary pressures, and NSP is failing to deliver reliable service," the department said.
"During harsh economic times, it is unreasonable to impose further hardship on ratepayers to enhance corporate returns."
It also highlighted the failure of the Muskrat Falls hydro project in Labrador to deliver contracted amounts of hydro electricity, forcing Nova Scotia Power to buy higher-priced fuel to provide power.
"Ratepayers are being asked to pay for investments in failed or disappointing projects at the same time they face inflated costs for replacement fuels. Moreover, when these increased fuel costs are deferred, NSP again benefits from interest on fuel deferrals. NSP profits from poor investments at the same time ratepayers are forced to pay more for NSP's mistakes," the department said.
The department also repeated a call made by Premier Tim Houston to reject the settlement agreement reached between Nova Scotia Power and customer group representatives.
Provincial government highlighted the failure of Muskrat Falls Generating Project in Labrador to deliver promised hydro electricity, forcing Nova Scotia Power to buy higher-priced fuel to provide power. (CBC)
"The terms of the settlement agreement increase rates and contravene the purpose, spirit, and intent of Bill 212."
In her closing submission lawyer Nancy Rubin, representing large industrial customers, said the settlement accommodates the material impact of Bill 212 and "is reasonable, fair, equitable and in the best interest of ratepayers."
Limitations
Consumer advocate Bill Mahody said the deal imposes limits on some items Nova Scotia Power was seeking.
A proposed storm rider to pay for extreme weather was given a three-year term, turning it into a trial period. And a proposed decarbonization deferral account is limited to writing off Nova Scotia Power's fossil fuel plants.
"The Settlement Agreement represents the outcome of discussions among the vast majority of active participants in this matter, and it has the support of all ratepayer advocates," Mahody said in his submission.
"Further, the Settlement Agreement is comprehensive, addressing virtually all of the matters in contention before the Board."
CBC's Journalistic Standards and Practices
Critic of 'overly generous' Nova Scotia Power profits worried about rate cap
'I don't think anybody anticipated that the province would impose a restriction like this,' says business prof
"I don't think anybody anticipated that the province would impose a restriction like this," says University of Toronto business professor Laurence Booth.
"I was shocked."
Booth provided expert testimony for the Nova Scotia Utility and Review Board during regulatory hearings into Nova Scotia Power's application for higher rates in September — before the province imposed a 1.8 per cent rate cap on non-fuel costs.
The province said it was acting to protect ratepayers.
Legislation also limited Nova Scotia Power profits and required revenue generated by the 1.8 per cent increase be spent only on strengthening the electrical grid. The province suggested the company eat extra costs not covered in rates by lowering its profits.
A critic of overly generous profits
"I do sympathize with the provincial government," Booth said.
Booth said Canadian utilities have long reaped overly generous returns for too little risk — a criticism he levelled at Nova Scotia Power in testimony during the rate application.
But Booth says political intervention like this is "a repeated problem" in the United States and rare in Canada, where utilities recover their costs in return for slightly lower rates of return.
Laurence Booth is a business professor at the University of Toronto. (CBC)
"I think in many cases that's a little bit generous, but that's the regulatory compact."
Booth says the province stepped on an independent regulator doing its job, sorting through a very expensive transition away from fossil fuels mandated by federal and provincial governments.
Nova Scotia Power is entitled to recover the cost of the coal-fired plants built to generate electricity and the renewable energy sources required by governments.
Credit rating shot
"The result is electricity users in Nova Scotia are going to be paying twice, once for the coal plants that are no longer used and useful, and again for alternative production," Booth said.
"Nova Scotia Power has got legitimate grief here and the board is stuck between a rock and a hard place, trying to implement policy in a reasonable way consistent with what every other regulatory board in Canada has done and they've just been sideswiped."
The rate cap triggered a credit rating downgrade, shutting Nova Scotia Power out of the commercial paper market — basically an IOU issued by corporations with excellent credit ratings — to cover short-term spending.
Its long-term credit is now one notch above junk bond status.
"What I fear is that the rating agencies like Dominion Bond Rating Services and Standard & Poor's, they're going to say, well, perhaps Canada isn't the safe, conservative regulatory environment that we thought it was, and they'll revise their opinion not just for Nova Scotia, but for every other utility in Canada," he said.
After the province imposed its rate cap, Nova Scotia Power and lawyers representing its major customer groups and some advocacy groups reached a settlement that would see rates increase by 14 per cent over two years which includes higher fuel costs incurred by the utility.
Deadline Wednesday for final submissions in rate case
Nova Scotia Power insists the settlement adheres to the rate cap.
The proposed rate is currently before the Nova Scotia Utility and Review Board.
The deadline for final submissions is Wednesday.
Premier Tim Houston has called on regulators to reject the proposed increase, but has not said what the government will do if regulators accept the settlement.
CBC's Journalistic Standards and Practices
https://www.cbc.ca/news/canada/nova-scotia/nova-scotia-power-credit-rating-woes-continue-1.6679629
Nova Scotia Power credit rating woes continue
Source of short-term financing cut off by credit rating downgrade, company says
Last month, rating agency S&P Global dropped the utility's credit rating to just above junk bond status and downgraded another credit category, known as Canadian commercial paper, which provides short-term financing to businesses and government agencies.
The downgrade was in response to Bill 212, passed by the Progressive Conservative government in November, that limits electricity rate increases to 1.8 per cent for everything other fuel and energy efficiency program costs.
Increased revenue must be dedicated to strengthening the electrical grid and profits are also capped by the law. It was imposed in the midst of rate hearings held by the Nova Scotia Utility and Review Board (UARB).
S&P saw the "unprecedented political intervention as significantly detrimental to NSPI's credit quality because it impairs the regulator's ability to act independently to protect the utility's credit quality, undermining the regulatory construct and the utility's cash flow predictability."
Nova Scotia Power says "for the first time in the company's history," it has now been excluded from the commercial paper market. That market deals in unsecured debt issued by a company for short-term costs like payroll or accounts payable.
"NS Power is currently in the process of attempting to regain access to the commercial paper market," the company said in evidence filed this week with the UARB.
"However, if the company is unsuccessful, this will make short-term borrowing more expensive for NS Power as access to the commercial paper market has saved customers significant financing costs as compared to traditional loans and revolving credit lines."
Greg Blunden, chief financial officer of parent company Emera, says Nova Scotia Power usually has about $400 million in short-term borrowing which now costs one per cent or more in higher interest.
He said that would be between $3 million and $4 million "of incremental interest expense that we would pay that we otherwise would not have paid."
Nova Scotia Power also told regulators it is on the precipice of losing its investment-grade credit rating.
Province unmoved
"A loss of investment grade credit rating status would have a significant and dramatic impact on Nova Scotia Power's ability to access capital and the associated borrowing costs to be borne by customers."
Blunden said the downgrade comes as no surprise.
"Investors are nervous, they're uncomfortable," he said. "They see this as unprecedented in North America in our sector and as a result of that are really challenging us and asking themselves whether or not they should move their capital to other jurisdictions and I think we're seeing that."
The province is aware, but unmoved by the consequences for Nova Scotia Power's credit rating downgrade.
"I do understand that our legislation has put Nova Scotia Power into that position," acknowledged Minister of Natural Resources and Renewables Tory Rushton on Thursday. "Nova Scotia Power has made more than $125 million profit for the last 12 years, every year. Every other company right now, with the times that we're in, has had to make changes. I expect Nova Scotia Power to be no different."
Protecting ratepayers
Rushton repeated the talking point he has used, along with Premier Tim Houston, since the rate cap was introduced: the government is acting to protect ratepayers.
Even with the rate cap, Nova Scotia Power and its customer groups have agreed to a 14 per cent rate increase over two years, which must be approved by the UARB.
Houston has written to the regulator, urging the UARB to reject the settlement.
Despite the lower value of Nova Scotia Power, Blunden says Emera has no intention of unloading it.
"We're not going to sell Nova Scotia Power," he said.
"It's our home. We care very much about the business. We care very much about our customers. We're committed to Nova Scotia."
CBC's Journalistic Standards and PracticesRates could rise 14% over 2 years under settlement between Nova Scotia Power, customers
Settlement still needs to be approved by the Nova Scotia Utility and Review Board
If approved by regulators, rates would rise by 6.9 per cent in 2023 and 6.9 per cent in 2024 — the same amount on the table when hearings before the Nova Scotia Utility and Review Board (UARB) ended in September.
The settlement now goes to the UARB for approval.
"It'll be over to the board to determine whether or not the settlement itself is in the public interest, and everyone who participated in the hearing will have an opportunity to make representations on that point," said consumer advocate Bill Mahody, who represents Nova Scotia Power residential customers before regulators.
The agreement announced Thursday night takes into account the 1.8 per cent cap on non-fuel costs imposed through Bill 212 by the province's Progressive Conservative government after the hearings.
That legislation does not limit fuel adjustment costs, which Nova Scotia power was seeking for the next two years to cover the rising price of oil, gas and coal used to generate electricity. The utility had warned that adjustment could boost residential rates between 9.6 and 12 per cent.
The new agreed-on increase covers those fuel costs and includes increased spending on energy efficiency programs, which the province has also allowed.
Lawyers representing residential, small businesses and large industrial customers signed on to the settlement. As did the Ecology Action Centre and the Affordable Energy Coalition.
"The 6.9 per cent in the circumstances represents a reasonable rate increase given the revenue requirement that was testified to at the hearing," said Mahody.
Province not part of negotiations
The province did not participate in the negotiations.
In a statement Thursday night, the Department of Natural Resources and Renewables said it was unaware of the specific details and will have to review the terms of the agreement.
"We put legislation in to protect ratepayers, and we will continue to protect them. Anything that results in higher rates and potentially circumvents the purpose of our legislation will certainly require a close look," the department said.
In a news release, Nova Scotia Power president Peter Gregg said "we appreciate the collaboration of customer representatives to reach the proposed settlement filed today, as we adhere to the direction provided by the provincial government through Bill 212."
"There's no question this is a hard time for Nova Scotians and great attention must be paid to the current concerns over the rising cost of living, while also ensuring we maintain the most basic needs for a reliable electrical system," Gregg said.
Nova Scotia Power has withdrawn a proposed "earning sharing mechanism" that would have given the company half of excess profits earned above its approved rate of return, which is nine per cent.
Rate cap legislation
In accordance with the province's rate cap legislation, the rate of return has been capped at 9.25 per cent. The company had asked for a maximum of 9.5 per cent.
The settlement allows for a storm rider — or additional charge — on bills to pay for extreme weather, but the rider now ends in three years.
A so-called decarbonization account has been limited to writing off the cost of retiring coal plants pending further consultation with customer groups.
The elephant in the room that remains for ratepayers is fuel costs.
Rates in the settlement agreement do cover the outstanding fuel bill — estimated at $516 million in 2023 and 2024.
The settlement confirms that Nova Scotia Power will apply next year to begin to recover those costs, with an expectation that recovery will be spread out over time.
The settlement comes in the same week Nova Scotia Power had its credit rating cut two notches by S&P Global.
The rating agency blamed the rate cap, which it said was an act of unprecedented political interference in a regulated utility.
CBC's Journalistic Standards and Practices
https://www.cbc.ca/news/canada/nova-scotia/emera-clean-energy-projects-on-hold-1.6649246
Emera puts clean energy projects in Nova Scotia on hold after rate cap
Provincial government imposed a rate cap on Nova Scotia Power's parent company last month
In a conference call to discuss the power utility's latest financial results, Emera chief executive Scott Balfour said Friday that while the company will continue to make investments in safety and reliability of its network, it won't be able to spend on other projects in the province due to the cap.
"The last capital plan included $500 million in planned investment in the Eastern Clean Energy Initiative, including the Atlantic Loop, to fund new wind generation, transmission, infrastructure upgrades and battery storage to help facilitate the transition away from coal-fired generation," he said.
"Given the restrictions imposed by Bill 212, these cleaner energy investments have been forced to be put on hold as our capital investments at Nova Scotia Power are now required to only focus on maintaining system reliability."
Scott Balfour is CEO of Emera, Nova Scotia Power's parent company. (CBC)
The Atlantic Loop is a proposed $5-billion transmission megaproject, which would give the region more access to Labrador and Quebec hydroelectricity.
The company had applied for a nearly 14 per cent rate hike over two years with the provincial regulator earlier this year, but the province stepped in and passed legislation to limit the power rate increase to 1.8 per cent over the next two years, excluding increases linked to fuel costs.
The changes to the Public Utilities Act also took aim at the utility's profit by preventing the regulator from approving a rate of return on equity any higher than 9.25 per cent, compared with the up to 9.5 per cent requested by Nova Scotia Power.
Nova Scotia Premier Tim Houston said last month on Twitter his government would "take the necessary steps to protect you from unfair rate increases while helping to ensure your lights stay on."
However, Emera says the restrictions means it won't be able to invest in what it called decarbonization efforts in Nova Scotia even as it does so elsewhere in its business.
"We remain deeply concerned about the long-term impacts of this legislation to Nova Scotia Power customers as it delays the clean energy transition and will ultimately result in higher, not lower, costs for customers," Balfour said.
Both Nova Scotia and New Brunswick have committed to phasing out their coal-fired generation by 2030, while Nova Scotia has enshrined in law its goals to reduce greenhouse gas emissions to at least 53 per cent below 2005 levels by 2030 and to achieve net-zero emissions by 2050.
The comments by Emera came as it reported a third-quarter profit of $167 million or 63 cents per share, compared with a loss of $70 million or 27 cents per share in the same quarter last year.
Operating revenue totalled nearly $1.84 billion for the quarter ending Sept. 30, up from nearly $1.15 billion in the same quarter last year.
On an adjusted basis, Emera said it earned 76 cents per share in its latest quarter, up from an adjusted profit of 68 cents per share in the third quarter of 2021.
Balfour said the growth in the company's earnings was principally driven by continued strong performance from its utilities in Florida.
Ottawa 'very committed' to Atlantic Loop electricity mega project despite pause
'We think it's very much part of the clean energy future of Atlantic Canada,' says Dominic LeBlanc
"If they decide to press pause, whatever that means for them, it doesn't stop engineering work and financial conversations from taking place with other utilities," Intergovernmental Affairs Minister Dominic LeBlanc said in an interview Wednesday.
LeBlanc said negotiations are ongoing "to come to what we hope can be an agreement in principle in the first quarter of 2023."
"We remain very committed as a national government to the project. We think it's very much part of the clean energy future of Atlantic Canada."
The Atlantic Loop would enable the delivery of hydroelectricity from Labrador and Quebec into Maritime provinces that rely mostly on fossil fuels for electricity.
In Nova Scotia, the Loop is seen as key to meeting the legislated requirement to close all coal-fired electricity generating plants by 2030.
But the project's future became less clear last month when the CEO of Emera, Scott Balfour, told CBC News the company was putting the brakes on the Atlantic Loop because of electricity rate caps introduced in Nova Scotia by the Houston government.
The rate cap legislation, which also caps profits and limits spending, passed this week.
"That's one of the first projects that we've said to the team that, you know, we have to push pause on for now," Balfour said Oct. 19.
"There isn't enough money in order to continue to pursue that, let alone the ability for us to go to the investment community and say, you know, 'Please invest more money in Nova Scotia,' in order to enable that kind of project of that kind of scale."
Later this week, Emera will release what projects it intends to cut because of the Nova Scotia Power rate cap when it releases its three-year capital spending plan.
LeBlanc said he's talked to Premier Tim Houston about Nova Scotia's "very legitimate concerns around electricity and power rates."
At Province House in Halifax on Wednesday, Nova Scotia Natural Resources Minister Tory Rushton welcomed federal Intergovernmental Affairs Minister Dominic LeBlanc's vote of confidence in the project. (CBC)
"I totally understand that concern of his government, and he and his utility will obviously find a way through that," said LeBlanc.
LeBlanc's message was to get on with it.
"Where the government of Canada is prepared to be a significant partner in this project, the failure to take this opportunity does not augur well for power rates either. So the problem is not going to go away if people stick their heads in the sand."
Natural Resources Minister Tory Rushton, who introduced the Nova Scotia Power rate cap, welcomed LeBlanc's vote of confidence in the project since federal spending is needed to make it happen.
"The biggest portion of funding that we're going to be looking for is from the federal government. It's a capital project. So I'm certainly hopeful that this is encouraging words for Emera and Nova Scotia Power to stay at the table, which they were last week," Rushton said in an interview Wednesday.
LeBlanc would not say how the federal government would fund the Atlantic Loop.
Intergovernmental Affairs Minister Dominic LeBlanc said he is confident the Atlantic Loop will go ahead. (CBC)
He said the Canada Infrastructure Bank and the Department of Finance Canada are part of discussions.
"I think a project of this size and in the rather compressed timelines that we recognize it faces, we need to look at those financial structures in a creative and innovative way. So I would expect that a whole series of options would be part of those conversations."
LeBlanc said Emera is "obviously a key player, and Emera and Nova Scotia have to be part of the project for it to work," but relative to the overall scale of the Atlantic Loop, "Emera was not going to be one of the most significant potential partners in terms of capital investment."
When Emera publicly demurred on the project, Houston downplayed the prospects, saying it was only one way to reach renewable energy targets.
"The Loop discussions have been dragging on. There's always been lots of questions. The federal government has been cagey on how much they will fund, whether they will fund it," Houston said Oct. 21.
LeBlanc said it was a legitimate concern, but urged Houston to be patient.
"The scale of the project is enormous. The government of Canada is not in the electricity transmission business. So we need to rely on information that we're getting from provincial utilities, provincial energy departments. The good news is we're getting that information," LeBlanc said.
"Once we have that information from the provinces and their utilities, I'll be in that position to go to my cabinet colleagues and answer those very precise and legitimate questions that the premiers have in terms of the nature of the federal contribution, the structure of the federal contribution and of course the quantum. That's what everybody wants."
In a statement Wednesday in response to LeBlanc, Emera said the Atlantic Loop is a key part of the best, most effective path to retire coal plants in Nova Scotia — but one that requires federal support.
Houston says he'll intervene in future power rate increase applications if necessary
Consumer advocate has expressed concern about long-term consequences of Bill 212
"We'll do whatever is necessary in any form, in any place, to protect Nova Scotians," Houston told reporters at Province House on Tuesday.
"My obligation is to Nova Scotians. That's where my obligation will always remain."
The premier's comments come a day after the province's consumer advocate expressed concern that Bill 212, which limits the rate increase the Nova Scotia Utility and Review Board can award the utility for the next two years, shakes the independence of the board and could lead to higher rates in years to come.
Bill Mahody told the legislature's law amendments committee Monday that by restricting the rate increase to 1.8 per cent over the next two years, the government risks creating a market correction that would drive up Nova Scotia Power's borrowing costs and debt payments — circumstances that would ultimately fall to ratepayers to cover.
Premier Tim Houston says he's convinced Bill 212 will lead to more affordable power for Nova Scotians. (CBC)
Houston said officials with his government "considered every possibility" in drafting the legislation, which comes after the first rate hearings in more than a decade, but before the UARB could deliver its final ruling on the utility's application.
The premier didn't answer directly when asked if he was convinced the bill would not lead to higher borrowing costs for Nova Scotians.
"I'm convinced it will lead to more affordable power for Nova Scotians and that's what my goal is," he said Tuesday.
Mahody was not the only presenter on Monday to express concerns about Bill 212. Nova Scotia Power CEO Peter Gregg said MLAs must choose between supporting the legislation or supporting the province's climate targets of generating 80 per cent of electricity from renewable sources and ending the use of coal for electricity generation by 2030.
Gregg said there is not an affordable, viable way for Nova Scotia Power to meet those targets without the Atlantic Loop and the hydroelectric power it would deliver to the province via Quebec.
Natural Resources Minister Tory Rushton said he disagreed with Gregg's framing of the issue. Loop or no loop, he and Houston said they expect Nova Scotia Power to meet its targets.
Natural Resources Minister Tory Rushton says his government expects Nova Scotia Power to hit its environmental targets by 2030, even with a cap on its potential rate increase. (Robert Short/CBC)
Rushton said the constraints his government is placing on the UARB means whatever increase the board grants will amount to a cut for Nova Scotia Power when inflation is considered, but he said the company should be able to shoulder it.
"There is a profit margin there and other businesses around our province and around our country are taking part of their profits to ensure the longevity of their company," he told reporters.
"I expect Nova Scotia Power to do no different."
While Houston and Rushton downplayed Mahody's concerns, Liberal Leader Zach Churchill said they should be cause for pause.
Liberal Leader Zach Churchill says the government should consider concerns expressed by the province's consumer advocate about the possible long-term consequences of Bill 212. (Jeorge Sadi/CBC)
Although he welcomes protection for ratepayers, Churchill said the government risks "cutting off their nose to spite their face" if Mahody's concerns about potential long-term financial pain are not thoroughly considered.
"I feel this government is very reactionary," Churchill told reporters.
"They're really driven to win the headlines of the day, and when you're making decisions like that, you can make some decisions that are bad for the long term of our province and have pretty grave consequences."
NDP Leader Claudia Chender said she is concerned about the government inserting itself into a process that is supposed to be independent.
"The premier seems to want to run the entire government off the side of his desk," she told reporters.
"There are really good reasons why we don't run governments out of one office but we have independent experts who help us to navigate the big decisions and the big dollars attached to government funding and decisions."
NDP Leader Claudia Chender says there are other ways the government can intervene in the UARB process without compromising the board's independence. (CBC)
Chender said the Tory legislation might bring short-term relief for Nova Scotia Power customers, but she said Houston is putting off a bill that will eventually come due the same way the Liberals did when they were in power.
The difference then was the Liberals prevented the UARB from hearing any general rate applications from Nova Scotia Power, while the Tories allowed the hearings to go ahead but stepped in to shape how the decision could look.
If the government wants to intervene around power rates, Chender said it should happen by allowing the UARB to consider a low-income rate based on people's income, creating penalties that can be used if the targets for getting off goal and increasing use of renewables are not met, and stiffening performance standards for Nova Scotia Power.
Nova Scotia will be less than a year from a provincial election when the constraints of Bill 212 expire.
Planned cap on Nova Scotia Power's rate increases would create more problems, MLAs told
Government intervention could have long-term implications, observers say
A proposed bill to cap rate increases for Nova Scotia Power for the next two years may bring short-term satisfaction for ratepayers, but would create a number of long-term problems, according to business and consumer advocates and the company alike.
Speakers appeared before a legislative committee to discuss Bill 212 on Monday, a proposed law that would prevent the Nova Scotia Utility and Review Board from granting Nova Scotia Power a rate increase of more than 1.8 per cent over the next two years.
The bill would have no effect on a separate potential rate increase the company is also seeking that is tied to rising fuel costs.
Natural Resources Minister Tory Rushton tabled the bill earlier this month after the company's general rate application hearing at the UARB. Rushton previously said he wanted to allow that process to play out, but tabled the bill before the board delivered its decision.
Bill Mahody, the province's consumer advocate, said Bill 212 is problematic because it threatens the independence of the UARB.
Bill Mahody is Nova Scotia's consumer advocate. (CBC)
Mahody told reporters rates are often set below what NSP has requested after an extensive review that cannot be replicated on the floor of the legislature.
"The fear is, that if you take a holiday from the type of diligent regulation we've had, that may substantially drive up your other costs that traditionally we've benefited from," he said.
"This bill, in a single piece of legislation, undoes a track record of regulator performance that's extensive."
For instance, Mahody said, ratepayers benefit from investor confidence in Nova Scotia's regulatory environment which keeps NSP's debt costs down.
That potentially goes out the window if rates can be set at the whim of a given government, he said.
Nova Scotia Power president Peter Gregg addresses a provincial legislative committee on Monday in Halifax. (Michael Gorman/CBC)
Nova Scotia Power president Peter Gregg put the consequences of the bill in stark terms for MLAs: they could support the temporary cap on rates, or they could support the 2030 climate goals that call for the company to end its use of coal to generate electricity and require the use of more renewables.
"You cannot logically support both."
Gregg said the climate action everyone wants from NSP costs money. He said the cap the Tories introduced would mean the reduction of about $150 million in revenue in the next two years compared to what was submitted in the company's rate application.
The company has said the increase it was seeking would amount to about $15 per month more for the average household by 2024.
"I'm not saying that $15 per month is pocket change, but what we are saying is that we need to have a clear conversation of what we're actually saving here."
No viable Plan B to Atlantic Loop
Gregg said a rate cap would force the company to cut capital spending and the proposed Atlantic loop, which would bring hydro power from Quebec into this province, has already been paused.
Gregg said the Atlantic Loop is the best shot for Nova Scotia Power to get off coal by 2030 and he does not see a viable Plan B that would achieve a similar result.
"While there may be technical solutions that could get us there, we're really focused on what is the most affordable and achievable solution, and it's very much at risk today."
Brian Gifford of the Affordable Energy Coalition said the UARB needs to consider a reduced energy rate for low-income customers, yet the proposed bill doesn't address that.
Brian Gifford is with the Affordable Energy Coalition, a group that advocates for policies to end energy poverty. (Michael Gorman/CBC)
Gifford, who has called for the change in the past, noted that the province has the highest rates of energy poverty in the country and that about half of households are heated by fossil fuels.
"If now is not the time to create a regulated low-income rate relief program, when will there ever be a time," he asked MLAs, saying his group "could not be more frustrated."
Gifford was also unhappy that the government brought forward legislation without allowing the UARB to conclude its work, thus interfering with a process that is supposed to be independent.
The best long-term way to deal with energy poverty is through the electrification of transit and the greening of the power grid, said Gifford. He's worried the cap on rate increases will prevent NSP from hitting its efficiency targets by 2030.
"This is the opposite of long-term thinking," he said.
Halifax Chamber of Commerce president Patrick Sullivan said he has members who will welcome the short-term break the legislation will create, but he and many other members worry what the temporary pause means for the future. He also questioned the point of having an independent regulator if the government can sideline it at will.
"By the end of the two-year restriction period, will the current provincial government allow a significant rate hike approximately seven months before the 2025 provincial election?"
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Emera is pausing the Atlantic Loop in the wake of power rate cap legislation
The company says the business climate in N.S. has changed as a result of the imposed rate cap
Emera CEO Scott Balfour told CBC News the company is now rethinking capital spending, starting with the Atlantic Loop — a multi-billion dollar proposed energy corridor to connect the four Atlantic provinces to hydroelectricity from Quebec and Labrador.
The Atlantic Loop is a key part of the strategy to wean Nova Scotia off its reliance on burning fossil fuels to generate electricity.
"That's one of the first projects that we've said to the team that, you know, we have to push pause on for now," Balfour said. "There isn't enough money in order to continue to pursue that, let alone the ability for us to go to the investment community and say, you know, please invest more money in Nova Scotia in order to enable that kind of project of that kind of scale."
Emera is responding to amendments to the provincial Public Utilities Act introduced this week by Nova Scotia's Progessive Conservative government.
The legislation imposes a 1.8 per cent cap on electricity rate increases for two years — money that must be spent on operation and maintenance.
Fuel costs will continue to flow through to customers.
Scott Balfour is CEO of Emera, Nova Scotia Power's parent company. (CBC)
The amendments also cap the guaranteed rate of return at 9.25 per cent, ensure all excess profits be returned to ratepayers to lower their costs and limit the interest that Nova Scotia Power can charge ratepayers.
The amendments pre-empt — or "kneecap," in Balfour's view — an ongoing Nova Scotia Utility and Review Board hearing into Nova Scotia Power's first general rate application in a decade.
The company is seeking a 13.7 per cent increase over two years, with skyrocketing fuel costs still yet to be determined for 2024 and 2025.
'Very new territory'
Board members were set to deliver a decision on the complex case in the new year.
"This is very new territory in North America for a government to intervene in an independent regulatory process and one I'm deeply concerned about," Balfour said.
In a release this week, Emera said the amendments will result in "a material reduction" in the approximately $1 billion in capital spending planned by Nova Scotia Power in 2023 and 2024.
"The reductions imposed by this legislation will impede Emera and NS Power's ability to advance clean energy investments in the province which were specifically required to meet shared 2030 decarbonization goals. This includes planned investments such as wind generation, grid scale batteries, and enhancements to the interprovincial transmission system," Emera said.
Exactly where Emera plans to cut will become clear on Nov. 11, when the company releases its three-year capital spending plan in a call with investors.
To cut costs immediately, the company cancelled 60 new reliability-related jobs outlined in Nova Scotia Power's 2022 general rate application.
Government response to Atlantic Loop pause
The government was asked on Friday about Emera's decision to press pause on the Atlantic Loop and downplayed its significance.
"I'm not too worried about it to be honest," said Natural Resources and Renewables Minister Tory Rushton, who introduced the rate cap legislation.
"I'm disappointed that Emera and Nova Scotia Power would state that, to be quite honest. But there's many other conversations that can take place with other stakeholders that could be interested in that as well. But it's early days and there's still conversations going on," he said.
Nova Scotia Premier Tim Houston acknowledged the importance of the Atlantic Loop saying it "would make it easier" to achieve the province's requirement that all electricity be from renewable sources by 2030.
"The Loop discussions have been dragging on. There's always been lots of questions. The federal government has been cagey on whether they'll fund it, how much they'll fund it.," he said.
"That's why we've always been focused on other ways to help us meet our targets: wind, solar, hydrogen."
Opposition reaction
Opposition parties that support the rate cap questioned whether the government was prepared for Emera's reaction.
"We've had questions about the Atlantic Loop for years and we have several times asked this government what's Plan B? And we've heard, 'Oh, there's Plan B, there's Plan B.' We've never heard what it is. Obviously it's concerning. We need to meet our targets," said NDP Leader Claudia Chender.
"It's clear that the government moved on a piece of legislation without thinking about what the consequences would be on that front," said Liberal Leader Zach Churchill.
Jacob Thompson with the Halifax-based environmental group Ecology Action Centre said the rate cap may help with affordability in the short term but at a price.
"The risk of lowering the increase over the next two years is that we potentially put off our climate plans for two years or more," he said.
Emera shares dropped nearly five per cent Wednesday when the rate cap was announced. The stock was down another three per cent Thursday, closing at $49.99 a share
Emera's future in Halifax
Headquartered in Halifax, Nova Scotia Power generates just 15 per cent of Emera earnings.
Balfour would not answer directly when asked if Emera will remain in the province.
"It's impossible not to look through the lens of our continued investment and growth in Nova Scotia differently today than we did," he said.
"Nova Scotia remains home, but our focus in terms of future growth and job creation and all those things, by necessity out of this legislation will increasingly focus elsewhere."
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https://www.cbc.ca/news/canada/nova-scotia/nova-scotia-power-rates-fuel-costs-1.6621990
Proposed legislation would limit rate increases for Nova Scotia Power
NSP says new law would hurt its plans to improve reliability of electrical system
Natural Resources Minister Tory Rushton tabled amendments to the Public Utilities Act on Wednesday that heads off a proposed rate increase Nova Scotia Power is seeking from the Utility and Review Board.
"For the next two years, we are controlling what we can control," Rushton told reporters during a bill briefing.
"With this legislation, we are giving the UARB the tools they need to ensure Nova Scotians pay the lowest cost possible for their power."
While the legislation would limit the potential increase to 1.8 per cent over two years, it does not address the effect major increases in fuel costs could have on rates. NSP recently tabled documents with the utility board showing residential rates could go up by 23 to 25 per cent over the next three years without some form of mitigation.
Rushton said fuel is an "unavoidable" cost that everyone, including the power corp, must deal with. He said the government is trying to soften the blow. The province recently provided relief to Nova Scotia Power related to its requirement to reduce greenhouse gas emissions, resulting in an estimated $165 million in savings.
"We made a dent in it, but government cannot foot the whole bill," said Rushton.
The allowable rate increase is estimated to be worth $25 million to $30 million, all of which must go toward increasing service reliability including better management of trees. Rushton said about 90 per cent of power outages are caused by trees falling on power lines.
Nova Scotia Power's president said in a statement that the government's proposed legislation is an attempt to override the independence of the province's Utility and Review Board. (CBC)
The amendments will also prevent the UARB from being able to approve Nova Scotia Power's requests to increase its rate of return, or keep any excess profits.
Rushton said private businesses need to make a profit, "but now is not the time for a utility to be looking for more."
The government has previously resisted calls from opposition politicians to act sooner, saying it wanted to allow the general rate application process to play out. The UARB is expected to rule on the application later this year.
In a statement, Nova Scotia Power president Peter Gregg said utility officials are "disappointed and concerned that the Government of Nova Scotia would use legislation to override what is meant to be a politically independent process."
"As part of our rate application, we requested over $500 million to strengthen our energy infrastructure and fund 60 new front-line jobs directly related to reliability," Gregg said in the statement.
Nova Scotia Power is moving away from coal-fired electricity to renewable sources such as wind. The company says they won't be able to meet climate-change goals if the government passes a new law proposed Wednesday. (Tom Ayers/CBC)
"Today's proposed legislation limits this planned investment and the amount of storm preparedness and system hardening we can do in the province."
Gregg also said the measure threatens the company's ability to meet legislated greenhouse gas reduction targets that include ending the use of coal to generate electricity and generating 80 per cent of power from renewable sources by 2030.
Rushton said he expects Nova Scotia Power to meet those targets.
"Every business in Nova Scotia, every business in Canada is facing high inflation. Every business is making hard decisions to see themselves over those hurdles and I would expect Nova Scotia Power to do no different."
Liberal environment and climate change critic Iain Rankin said the limit on rate increases is a start, but the government must find more ways to reduce the effects of rising fuel costs.
"It's kind of late. They waited for a [general rate application] hearing to start. I'm not sure why that is, but it's a step in the right direction."
Rankin said dealing with fuel costs will be a challenge, and so it's even more vital to make a quick transition to renewable energy.
"Nova Scotia Power, I think, does own some of that responsibility. They've relied on coal for a long time. I think that they could have acted quicker."
NDP environment and climate change critic Susan Leblanc said the legislation is only a temporary measure and will still lead to some people having to choose between paying their rent or their power bill.
Leblanc said the bill does present time to find ways to keep power rates as affordable as possible while making good on the province's environmental commitments.
"We have to get off coal by 2030 and we have to green our grid and that is going to cost money," she told reporters.
"We have to figure out ways of making sure that that can be done by the dates that we need to do them by."
Fuel costs mean Nova Scotia Power rates could spike again in the coming years
Without mitigation measures residential rates could rise by 23 to 25% over the next 3 years
Without mitigation measures residential rates could rise by 23 to 25 per cent over the next three years.
The company filed documents Friday in response to a directive from the Nova Scotia Utility and Review Board to estimate the potential impact of rising fuel costs on rates in 2024 and 2025.
The company has not asked for this level of increase and says the scenario does not include any efforts to reduce fuel costs.
NSP seeks 13% increase starting in 2023
The company is seeking an overall 13 per cent hike over the next two years.
The application does not take into account the impact of its escalating fuel bill on rates in 2024 and 2025.
The company intends to start recovering those costs in a separate case next fall.
During public hearings last month the Nova Scotia Utility and Review Board asked for an estimate as part of this case.
The Tufts Cove smokestack in Dartmouth, N.S. (CBC)
It asked for the impact on rates assuming fuel and purchased power costs are consistent with Nova Scotia Power's latest fuel update, released this summer.
Fuel is the coal, oil and natural gas burned to generate electricity at its thermal plants. Purchased power is primarily what it pays for wind power.
The potential impact
Factoring in expected fuel costs adds another 9.6 to 12 per cent to the residential rate increase the utility is currently seeking — depending on how and when fuel costs are recovered.
In one scenario residential rates could rise 10.6 per cent in 2023, 6.3 per cent in January 2024 and 6.6 per cent in January 2025 for an overall increase of 23.5 per cent.
In another scenario, using rate smoothing, rates could increase 6.9 per cent in 2023, 11.6 per cent in 2024 and 7.3 per cent in 2025 — a potential 25.8 per cent increase over three years.
Company spokesperson Jackie Foster says the 25 per cent increase is "a scenario where no fuel cost mitigation efforts were taken."
Not a done deal
"I accept that if the fuel numbers come in as expected that is what the increases would eventually look like," said consumer advocate Bill Mahody, who represents residential customers in regulatory hearings.
Proceedings are still underway and the board has made no decision on how it will treat recovery of the fuel bill.
"The company is not looking to put all of that in rates now, but the reality is customers should be very much aware that the best estimate is that this is where costs are going," Mahody said.
A Nova Scotia Power worker in a cherry picker repairs powerlines. Company spokesperson Jackie Foster says the 25 per cent increase is a 'scenario where no fuel cost mitigation efforts were taken.' (Robert Short/CBC)
The overall average for all customer classes ranges between 23.9 to 27.7 per cent over the three years.
Ratepayers may need to pony up half a billion dollars
Nova Scotia Power's fuel costs have added a layer of complexity to its general rate application, which is the first in a decade.
As a cost-of-service utility, which is entitled to recover prudently incurred costs, ratepayers are on the hook for the huge spike in the fuel bill facing the company.
Nova Scotia Power updated its fuel forecast in August, revealing the cost of fuel between 2022 and 2024 is $681 million higher than the amount in its rate application submitted earlier this year.
The blow to ratepayers was softened this year by $165 million in greenhouse gas emission relief provided by the province, but it still leaves $516 million in higher fuel costs expected in 2023 and 2024.
On the eve of the hearing, the proposed rate increased from 10 per cent to 11.6 per cent to cover $113 million in higher fuel costs this year. Even then recovery was spread over three years. Fuel costs in upcoming years are unaccounted for in the rate application.
During the rate hearing Nova Scotia Power said it will wait until next fall to submit its plans to recover the fuel bill.
Then there is the federal carbon tax.
If Ottawa rejects Nova Scotia's proposal to collect the tax, it could impose the "federal backstop program," which Nova Scotia Power says would cost $243 million over the next two years.
CBC's Journalistic Standards and Practices
Nova Scotia Power rate ask now tops 13 per cent and counting, says consumer advocate
With hearings concluded, UARB must now decide on 16 separate issues presented by the company
The two-week Nova Scotia Utility and Review Board hearing came too late in the year to put a rate increase into effect in 2022, as Nova Scotia Power intended.
The compressed recovery time over two years and additional fuel costs increased the original ask, says consumer advocate Bill Mahody, who represented residential customers at the hearing.
"I think we learned a lot," Mahody said at the end of Friday's hearings. "We learned from the company's perspective that their request of the board is a 6.8 per cent annual increase in both 2023 and 2024.
"The impact on different customer classes is still to be determined and will be filed later. So we don't know the full impact of the residential class."
Nova Scotia Power declined comment until the three-member panel issues its decision on the application.
Board chair Stephen McGrath said new rates will not be in place by Jan. 1, either.
'This is a significant hearing'
"This is a significant hearing," McGrath said in his closing remarks. "Nova Scotia Power hasn't been before the board for a general rate application since 2012, and there are a number of decision points in this proceeding that the board needs to think about carefully in terms of rendering a decision."
Regulators must decide on 16 separate issues presented by the company. A decision is expected sometime in early 2023.
Nova Scotia Power proposes to keep its rate of return at nine per cent, but expand the band of allowable earnings to a low of 8.5 per cent and upper limit of 9.5 per cent.
Consumer advocate Bill Mahody represented residential customers at the Nova Scotia Utility and Review Board hearing. (CBC)
The Emera subsidiary also wants regulators to increase the proportion of shareholder money it can use to pay for capital projects from 37 to 45 per cent.
If approved, it would allow Nova Scotia Power to earn a nine per cent rate of return on 20 per cent more of the money it spends on capital projects.
Finally, it is asking for a new "earning sharing mechanism" that would give the company half of excess profits earned above its approved nine per cent rate of return.
Proposed storm charge
Right now, all excess earnings go to reduce fuel costs for ratepayers.
"I can't imagine how it could be seen as being an appropriate request of this board at this time," said Mahody.
Nova Scotia Power is proposing a new storm charge that would allow it to collect up to two per cent more per year from ratepayers to pay for extreme weather events.
Nova Scotia Power is proposing a new storm charge that would allow it to collect up to two per cent more per year from ratepayers to pay for extreme weather events. (CBC)
The storm rider would allow it to recover any money spent above the amount embedded in rates to cover the costs of dealing with severe storms — about $10.5 million per year.
The rider only goes one way — to the benefit of the company.
If storm costs come in below what is set in rates, the company keeps the difference. There is no refund to customers.
Decarbonization deferral account
The company also wants to create an account to spread out the cost of retiring its coal fired plants by 2030. It says unrecovered depreciation in the account will sit at over $600 million at the end of the decade.
The company must persuade the board that existing depreciation rules need to be changed.
There are also key issues that loomed over the rate hearing but were not resolved.
During the hearings, Nova Scotia Power said the cost of closing its coal plants and transitioning to a greener electricity grid will likely cost more than $2 billion this decade. (CBC)
One is the federal carbon tax.
An agreement with the province that averted the tax expires at the end of 2022. It's not clear what will replace it.
Ottawa could impose the "federal backstop program" which Nova Scotia Power said would cost it $243 million over the next two years. That is not accounted for in the rate application.
Fuel cost spike
Ratepayers are also on the hook for the huge spike in fuel costs facing Nova Scotia Power.
The company updated its fuel forecast this summer, revealing the cost of fuel between 2022 and 2024 is $681 million higher than the amount in its application submitted earlier this year.
On the eve of the hearing, the proposed rate increased from 10 percent to 11.6 percent to cover the fuel bill to the end of 2022.
The blow was softened by $165 million in greenhouse gas emission relief provided by the province, but it still leaves $516 million in higher fuel costs expected in 2023 and 2024.
The company says it will wait until next fall to submit its plans to recover the fuel bill.
Amid the move to a greener grid, Nova Scotia Power considers buying Donkin coal
Disclosure made under questioning at application hearing to raise rates by 11.6 per cent by 2024
Nova Scotia Power is negotiating with the owners of the recently reopened Donkin mine in Cape Breton to secure a domestic source of coal.
The company made the disclosure Wednesday under questioning at hearings into its application for an 11.6 per cent rate increase by 2024.
"I'll limit my response to, 'We're in detailed discussions,'" Nova Scotia Power's vice-president commercial David Landrigan told the Nova Scotia Utility and Review Board (UARB).
"We're in confidential discussions in the pursuit of a commercial arrangement with them."
Kameron Coal of West Virginia owns the mine, which reopened this month after a two-year shutdown.
The negotiations are another reminder that even as it transitions to a grid supplied by 80 per cent renewables by 2030, Nova Scotia Power still relies on burning fossil fuels — including coal, natural gas and oil — to generate electricity.
Kameron Coal of West Virginia owns the Donkin mine. (Tom Ayers/CBC)
Soaring fuel prices prompted the company to increase its ask to 11.6 per cent — up from the 10 per cent it applied for earlier this year.
Earlier this month, Nova Scotia Power updated its fuel forecast showing fuel costs are $681 million higher than the May 2021 forecast it used in its original application.
This matters because fuel costs are automatically passed on to ratepayers.
To prevent rate shock, the Nova Scotia government waived carbon emission penalties worth $165 million and the company deferred or put off recovering fuel costs in rates.
"Under your proposal, ratepayers will finish paying for 2022 fuel costs in December of 2025, is that correct?" consumer advocate Bill Mahody, representing residential customers, asked Michael Willett, Nova Scotia Power's director of regulatory finance.
"That is the proposal, correct," Willet replied.
Next two years uncertain
The next two years are even more uncertain.
The rate application omits recovery of $516 million in higher fuel costs forecast for 2023 and 2024.
"Your best estimate (for 2023) is that there's somewhere in the range of $200 million in fuel costs that customers are going to face that are not currently in the rates that you've applied for," Mahody said.
"Could I see a scenario where it's significantly reduced? Yes, but a lot of good things have to happen and a lot of cooperation on some aspects. I can see a scenario. Is it going to be hard to do and is it a lot of heavy lifting? Yes," Landrigan replied.
It's not just fossil fuels.
The company did not get 2,700 gigawatt hours of additional market priced, and cheaper, hydroelectricity it had counted on from the Muskrat Falls hydro project in Labrador.
Storm rider
That loss makes up some of the $516 million in higher fuel costs.
"Our estimate is it would be under 20 per cent of that total … But we don't have it refined to how much," Landrigan said.
The company continued to take questions Wednesday about a proposed storm rider.
A storm rider would allow Nova Scotia Power to add up to two per cent per year to rates to recover the cost of responding to severe storms — if the cost came in over the $10 million set aside in rates.
Board counsel Bruce Outhouse wanted to know if the company would seek the storm rider if it earned its nine per cent rate of return.
"If you were at that nine per cent, surely you wouldn't expect the board to consider an application to get extra money for storm costs, would you?," Outhouse asked.
Selective Dorian requests
Nova Scotia Power finance director Craig Flemming would not make that commitment. Flemming said the company would not apply if it was at the top end of its allowed range of earnings which the company wants set at 9.5 per cent.
If the board denies the storm rider, the company wants permission to charge ratepayers $20 million per year to cover severe storms.
The figure incorporated the cost of responding to Hurricane Dorian in 2019, the most expensive storm in the company's history.
Board member Steven Murphy noted the company is selective in how it uses Hurricane Dorian in matters before the regulator.
The company asked for and was granted permission to exclude its response to Dorian when the board was evaluating its performance for 2019.
"Why do you think it would be appropriate to include Hurricane Dorian costs when Nova Scotia Power applied for and received board approval to have Hurricane Dorian removed from any metrics related to calculating Nova Scotia Power's performance standards?," Murphy asked.
CBC's Journalistic Standards and PracticesNova Scotia Power defends adding charges to cover storm damage at hearing into proposed rate increases
Proposal would allow utility to collect more from ratepayers to pay for extreme weather events
As part of its application to the Nova Scotia Utility and Review Board (UARB) for a general 11.6 per cent rate increase, the company is also asking for a "storm cost recovery rider" that would allow it to collect up to two per cent more per year from ratepayers to pay for extreme weather events.
Eric Ferguson, senior director for pricing and transformational regulatory Initiatives at N.S. Power, said Tuesday in Halifax the storm rider would be used sparingly.
"It's not the company's objective to have the rider every year, it's the objective to make the application when it's only absolutely necessary,'' Ferguson said.
In testimony on Wednesday, Ferguson said if the storm rider is approved it would not be used before 2025.
Why customer groups are wary
Here's why lawyers and consultants representing NSP customer groups are suspicious.
Nova Scotia Power wants to charge customers $10-million to pay for severe storm-related damage next year. That amount would be embedded in rates.
The proposed storm rider would allow it to recover any money spent above embedded rates related to severe storms.
The rider only goes one way — to the benefit of the company. If storm costs come in below what is set in rates, the company keeps the difference. There is no refund for consumers.
A tree uprooted by Hurricane Dorian in 2019 fell on power lines over Grand Lake Road in Reserve Mines, which led to the closure of the road for several hours. (Tom Ayers/CBC)
Company wins either way
In regulatory terms it is considered an "asymmetrical" mechanism.
"The criticism about the asymmetric nature was that it unreasonably favours [NSP Inc.] shareholders. That was articulated in the consultants' evidence," said Nancy Rubin, representing NSP's large customers.
"Yes," acknowledged Ferguson. "The company could recover over expenditures, but there wasn't a provision for refund of under expenditures."
Ferguson said NSP would not apply for a storm rider if the revenue it brings in would exceed its approved earnings or rate of return currently set at nine per cent.
The limitation is not in the company's application.
Hurricane Dorian left a trail of downed trees and power lines in its wake. NSP's finance director said the 2019 weather event created $17-million in unanticipated costs for the company. (CBC)
But NSP finance director Craig Flemming said the company ate $17-million in unanticipated costs from Hurricane Dorian in 2019 because it was still able to earn its approved rate of return that year.
If the Nova Scotia Utility and Review Board rejects its bid for a storm rider, the company is asking to embed $20-million per year in rates to pay for storm damage.
Keeping trees off lines
NSP promised to provide a "full picture" of vegetation management — regulatory speak for tree trimming — after consumer advocate Bill Mahody noted the amount it spent in 2020 and 2021 dropped to an average of $4.2-million — half the average between 2010 and 2019.
The company said tree trimming costs show up in a variety of areas of the business and committed to a breakdown.
NSP ratepayers on hook for $3M settlement with Eastlink, Rogers
NSP disclosed Tuesday it expects ratepayers to cover the $3-million a year it lost in revenue because of its settlement with Eastlink, Rogers and Xplornet. The telecommunications companies were fighting a proposed 165 per cent increase in the attachment fee charged for using NSP owned poles.
NSP was counting on getting $7.5-million from raising the fee from $14 per pole per year to $37.
A man walks by a Rogers store in Toronto in this 2013 file photo. Nova Scotia Power disclosed Tuesday it expects ratepayers to pay for the $3-million a year it lost in revenue because of its settlement with Eastlink, Rogers and Xplornet. (Galit Rodan/The Canadian Press)
Michael Willett, director regulatory finance for N.S. Power, said the fee increase was based on flawed information, including double counting overtime, an inaccurate pole count and expenses added that were not part of the pole attachment fee last approved by the board in 2002.
The recent settlement of $22 per pole reduced the take to $4.5-million.
"That incremental $3-million gap, is that to be recovered from other customers," asked Mahody.
In response, Willet said, "We operate on a cost-of-service model so that is correct. Those costs would need to be recovered.
The hearing resumes Wednesday.
Corrections
- Nova Scotia Power wants to charge customers $10-million to pay for severe storm-related damage next year. That amount would be embedded in rates. A previous version of this story contained an incorrect amount, and has been corrected.Sep 21, 2022 11:50 AM AT
Nova Scotia Power settles with telecom companies over fees to attach equipment to its poles
Deal will see 3 telecommunications companies pay an annual attachment fee of $22 per pole
The deal will see three telecommunications companies pay an annual attachment fee of $22 for each power pole carrying their equipment including telephone wirelines and fibre optic cable for high speed internet and TV services. That marks a 55 per cent increase from the current $14 fee, but far below the $37 per pole, or 165 per cent increase, Nova Scotia Power was seeking in its general rate application.
The agreement will also see a further two per cent increase in 2023 and 2024.
The settlement with Bragg Communications — operating as Eastlink, Rogers Communications Canada and Xplornet Communications — was posted Friday by the Nova Scotia Utility and Review Board (UARB).
The pole fee changes were part of Nova Scotia Power's application for an overall increase in power rates of 11.6 per cent by the end of 2024.
The telecommunications companies had objected to the proposed 165 per cent attachment fee increase.
Cost to use poles
They argued it threatens to make rural service less economic, would slow expansion in rural areas and unfairly advantaged rival Bell Aliant since Bell does not pay the fee under a long-standing pole-sharing arrangement with Nova Scotia Power.
Nova Scotia Power argued the fee had not changed in 20 years and Bell pays "significantly " more than its rivals to use its poles. The cost per pole, however, was blacked out in Nova Scotia Power's rebuttal evidence.
Nova Scotia Power owns 500,000 power poles. Bell Aliant also owns poles — a legacy of its days as a phone monopoly.
Eastlink senior vice-president of engineering and chief technology officer Steve Irvine submitted evidence saying the change would cost the company $3.5 million a year.
Eastlink declined to comment on the settlement on Monday.
'Significant impact' on business
Rogers, which recently purchased Seaside Cable in Cape Breton, said the $37 fee would cost it $300,000 per year. Seaside Cable manager Dean Abbass said the annual cost to subscribers would nearly triple to $45.
Xplornet is delivering a $6.1-million hybrid fibre-wireless expansion in Cumberland and Colchester Counties involving 19 wireless towers and 500 kilometres of new fibre. It needs Nova Scotia Power poles.
"An increase in the annual attachment fee will have a significant impact on our business," regulatory counsel Carl MacQuarrie said in written evidence.
Nova Scotia Power's proposed profit hike challenged at utility hearings
Debate over how much money the privately owned utility can make is expected to continue for a month
The company is before the Nova Scotia Utility and Review Board (UARB) seeking an 11.6 per cent rate hike over the next two years.
It says it faces disproportionate risk this decade because of the huge cost of transitioning the province's electricity generating system away from burning coal as a fuel.
The company is required by the provincial government to close coal fired plants by 2030 and use power supplied from 80 per cent renewable sources. The company predicts that by 2029, ratepayers will be on the hook for $658 million in depreciation to write off its coal plants before their useful lives.
Nova Scotia Power argues it needs to improve profitability in order to attract investors and protect its credit rating as it transforms to a greener grid.
Pennsylvania State University finance professor J. Randall Woolridge, appearing on behalf of the consumer advocate representing Nova Scotia Power's residential customers, said that risk is not showing up as a red flag in credit reports.
Assessing risks
"The credit reports I read for utilities all talk about the transformation of their fleets and how that has to be financed. So it's not unique. That's what utilities have to do these days," Woolridge said.
University of Toronto finance professor Laurence Booth appeared on behalf of the UARB's counsel.
The Nova Scotia UARB hearings are expected to last the rest of the month. (CBC)
Booth said Canadian utilities face lower business risk thanks to protective Canadian regulators.
"How would you like to get nine per cent pretty much guaranteed in your RRSP or outside of your RRSP, the way that NSPI [Nova Scotia Power Inc.] is earning its allowed greater return for the last 10 years?" he testified.
Both Woolridge and Booth challenged evidence from a Nova Scotia Power expert witness, James Coyne, the senior vice-president of Concentric Energy Advisors.
Coyne says Nova Scotia Power's efforts to improve profitability are justified, calling it the "the lowest capitalized, vertically integrated stock in North America."
'Earning sharing mechanism'
In its rate application, the company is seeking to maintain its nine per cent return on equity (ROE) but expand the lower and upper earnings band to allow for a maximum of 9.5 rate of return.
It has also proposed an "earnings sharing mechanism" that would give it — for the first time — half of earnings above its rate of return. Right now excess earnings go back into the business to reduce costs for ratepayers.
Nova Scotia Power, a subsidiary of Halifax-based Emera, wants regulators to increase the proportion of shareholder money it can use to pay for capital projects from 37 to 45 per cent.
If approved, it would allow Nova Scotia Power to earn a nine per cent rate of return on 20 per cent more of the money it spends on capital projects. For ratepayers, it would mean paying a nine per cent rate of interest rather than the much lower rate when the company borrows the money from the bank.
Coyne testified that Nova Scotia Power deserves a higher rate of return than it is seeking when compared to returns earned by other utilities, especially U.S. utilities.
"My analysis shows that 10.1 per cent is a reasonable and market-based ROE for Nova Scotia Power," Coyne told the board on Thursday.
Hearings into the rate application will resume Tuesday and are expected to continue for the rest of the month.
https://www.cbc.ca/news/canada/nova-scotia/nova-scotia-power-ups-rate-increase-application-1.6573980
Nova Scotia Power wants to increase rates by 11.6% over two years, up from previous forecast
Company says it needs more money from ratepayers to cover skyrocketing fuel costs
The company is now asking regulators for permission to raise rates by 11.6 per cent between 2022 and 2024, up from the 10 per cent it applied for earlier this year.
On Sept. 3, NSP disclosed its fuel costs are $681 million higher than the May 2021 forecast it used when it applied for the 10 per cent rate hike in late January.
"Since that time, world-wide inflationary pressures and geopolitical events have caused significant cost increases in services and products, including fuel to operate vehicles and fuel to generate electricity," the company said in an update filed with the Nova Scotia Utility and Review Board ahead of public hearings later this month.
Officials say the price of solid fuels used to generate electricity, particularly coal, have gone up along with the cost of natural gas and oil also used in Nova Scotia's power grid. NSP says the increase in solid fuel costs in the first six months of 2022 was $119 million more than originally forecast. Natural gas jumped by $89 million. The cost of wind power has remained flat in 2022 and is forecast to stay that way in 2023.
Fuel costs include the price of fuel it uses to generate electricity, power it buys and penalties it pays for failing to meet provincial greenhouse gas (GHG) reduction targets. And it matters because NSP's fuel bill is automatically passed on to customers, after an annual vetting.
It has asked regulators to defer recovery for higher fuel costs in 2023 and 2024 until at least 2025. The company also said it did not get 2,700 gigawatt hours of additional market-priced, and cheaper, hydro electricity it had counted on from the Muskrat Falls hydro project in Labrador.
Province won't explain $165M in relief it is giving NSP
The provincial government has offered some help — agreeing to provide relief from greenhouse gas expenses that will shave $165 million from fuel costs in 2022.
"This was a lever we could pull," Tory Rushton, Nova Scotia minister of Natural Resources and Renewables, told CBC News Tuesday.
"Is it credits or is it a financial mark? At the end of the day, what matters is the ratepayers in Nova Scotia.
"We've been through a lot here in Nova Scotia, in the rest of the rest of the country, it's hard on everybody's pocketbooks. So these are levers that we're willing to pull as a government to ensure our ratepayers are protected."
Tory Rushton is Nova Scotia's minister of Natural Resources and Renewables. (CBC)
Rushton referred questions about the details to officials, who later declined to clarify how the relief would work.
"We will release details later this fall," Nova Scotia Department of Environment and Climate Change spokesperson Elizabeth MacDonald said in a brief statement.
Temporary reprieve
Nova Scotia Power was clear this is a temporary fix.
"While the GHG Relief assists in making these compliance costs more affordable for customers in the near term, it does not relieve N.S. Power of its ongoing responsibility to meet its emissions targets in the long term," NSP said.
Imposition of a federal carbon tax is looming.
Last week Nova Scotia submitted its proposal asking for control of that tax.
Failing that, Ottawa would impose the "federal backstop program" which Nova Scotia Power said would cost it $116 million in 2023 and $127 million in 2021.
Jennifer O'Connell is the parliamentary secretary to Intergovernmental Affairs Minister Dominic LeBlanc. (CBC)
Jennifer O'Connell, parliamentary secretary to Intergovernmental Affairs Minister Dominic LeBlanc, was noncommittal Tuesday when asked about the Nova Scotia proposal.
"It depends. If it meets the federal government's emissions objectives. As in other provinces like B.C. — they have their own carbon pricing model," O'Connell said.
"In provinces where I come from, for example in Ontario, it's the federal backstop and that money is flowed directly from the federal government to residents. So it really depends on if the provinces submit a plan that meets the objectives of the legislation."
CBC's Journalistic Standards and Practices
Nova Scotia Power responds to critics of confidentiality claims in rate hike case
Company willing to release some information, including about bonuses and government lobbying
On Friday, the utility said two studies by Mercer Consulting on executive compensation paid to NSP executives should remain confidential despite objections from intervenors in the rate case, which include the Province of Nova Scotia.
NSP lawyer Blake Williams asked the Nova Scotia Utility and Review Board to dismiss the objections.
He said the company is willing to release "the market comparable aggregate amount of total direct compensation that is included in the Mercer Reports to demonstrate that the compensation included in the General Rate Application is below market."
The rest of the reports are irrelevant, he said, since legislation limits the portion of NSP executive compensation recovered from ratepayers to the level of provincial deputy ministers.
"NS Power is no longer permitted to seek full recovery of its executive compensation expenses and there remains no rationale or justification to disclose information pertaining to amounts over the Government Pay Plan Cap. If NS Power were seeking to recover the full amount of executive compensation then it would disclose the full amount, just as it did prior to the introduction of the Government Pay Plan Cap," Williams wrote.
Where NSP has dropped confidentiality claims
The company did withdraw many of its confidentiality claims after they were opposed by lawyer Nancy Rubin on behalf of the Industrial Group, representing NSP's largest customers and Dalhousie University.
NSP said it is now willing to release information on bonuses, its government lobbying activity, public information in a tax dispute with the Canada Revenue Agency and the identity of Shell as the supplier of natural gas in a long-expired contract.
The company said it will disclose details related to an incident at the Trenton 5 generating station once claims are settled.
Losses related to a transformer failure at the Point Tupper generating station and ice damage at the Nuttby wind farm are still subject to ongoing negotiations, it said.
"NS Power is committed to serving Nova Scotians in a transparent manner," Williams wrote.
Intervenors have until June 7 to respond.
N.S. Power executive admonished by opposition MLAs for proposed rate hike
MLA Brendan Maguire says company's application comes when cost-of-living increases 'crushing' Nova Scotians
The utility's chief operating officer Mark Sidebottom was one of 10 people called before the legislature's public accounts committee to talk about the company's proposed 10 per cent electricity rate increase over three years.
Although senior officials at the company agreed to testify, they warned the committee beforehand they would not answer specific questions about the rate application. A representative from the Nova Scotia Utility and Review Board, as well as two provincial deputy ministers, indicated the same.
That's because although the company filed its application in January, the formal regulatory hearings before the board have not started yet.
Liberal MLA Brendan Maguire called the warning "offensive."
"Even before you sit in this committee you send these letters to us saying that you don't want to, nor will you answer questions," said the Halifax Atlantic representative. "I've never seen anything like this in my eight years on this committee."
Nova Scotia Power chief operating officer Mark Sidebottom is shown at Province House in Halifax on Wednesday. (Jean Laroche/CBC)
Maguire suggested the proposal for a 10 per cent price increase over three years couldn't be coming at a worst time.
"The cost of living is absolutely crushing Nova Scotians and at that time Nova Scotia Power have the audacity to put forward a 10 per cent rate increase on the backs of Nova Scotians," said Maguire. "People are defaulting on their rent and their mortgage payments, and I know this because I've been an MLA for eight years and I've heard it."
In response to this question and others like it, Sidebottom repeatedly told committee members: "There's never a good time to ask for an increase in electricity rates."
The executive said the company needed the increase, which includes a request for a larger guaranteed rate of return, to cover the company's rising costs and to continue to make it attractive to investors.
"So that sounds good — that there's never a good time to have these increases," Maguire shot back. "Yet every time we turn around, it seems like it's a good time to have all-time high executive payouts.
"We're seeing all-time high bonuses. We're seeing executives at Nova Scotia Power and Emera become millionaires on the back of Nova Scotians."
That comment was a reference to the fact top executives at Nova Scotia Power and its parent company, Emera, profited from hefty bonuses and other benefits in 2021.
Some executives with Nova Scotia Power and its parent company, Emera, received hefty bonuses last year. (The Canadian Press)
New Democrat MLA Claudia Chender wasn't as blunt with her criticism of the proposed increase, but acknowledged "news of the rate increase has caused a lot of consternation right across the province."
"People are upset because they can't pay their bills already and we know that 37 per cent of Nova Scotia households experience what is defined as energy poverty, so more than six per cent of your after-tax income is spent on home energy," she told Sidebottom. "That's a massive number of people who struggle every month to pay their power bill."
During the spring sitting, the PC government updated the law that governs the utility and review board, but government members voted down amendments to that bill that would have allowed the board to create a special power rate for Nova Scotia Power customers who don't earn much money.
That concept was championed by the NDP, which led Chender to ask the utility if it would support a new customer rate designed to help low-income families.
Sidebottom responded: "Nova Scotia Power would be receptive, in fact supportive of understanding what could be a solution around this."
CBC's Journalistic Standards and Practices
Automatic reply: Does anyone recall the email entitled "So Stephen McGrath if not you then just exactly who sent me this latest email from your office?" |
| ||||||||
< steve.murphy@ctv.ca>, nmoore <nmoore@bellmedia.ca>, "David.Akin"
< David.Akin@globalnews.ca>, "Davidc.Coon"<Davidc.Coon@gmail.com>,
"Bill.Morneau"<Bill.Morneau@canada.ca>, "Dominic.Cardy"
< Dominic.Cardy@gnb.ca>, "atlantic.director"
< atlantic.director@taxpayer.
< blaine.higgs@gnb.ca>, BrianThomasMacdonald
< BrianThomasMacdonald@gmail.
< mike.obrienfred@gmail.com>, premier <premier@gnb.ca>,
classaction@wagners.co, oldmaison <oldmaison@yahoo.com>,
"leanne.murray"<leanne.murray@mcinnescooper.
< jbosnitch@gmail.com>, dwayne.woodman@rcmp-grc.gc.ca, andre
< andre@jafaust.com>, Newsroom <Newsroom@globeandmail.com>, news
< news@kingscorecord.com>
Cc: David Amos <david.raymond.amos@gmail.com>
michael.comeau@gnb.ca, JUSTWEB@novascotia.ca
I posted it here last year N'esy Pas Chucky Leblanc and Andre Faust?
http://davidraymondamos3.
---------- Forwarded message ----------
From: "Murphy, Steve"Steve.Murphy@bellmedia.ca
Date: Sat, 7 Oct 2017 12:02:52 +0000
Subject: Automatic reply: Well Mr Stever we spoke once again long ago
Now I will argue your City Solicitor Johanne Theriault and her buddies
working for the Crown
To: David Amos motomaniac333@gmail.com
Steve Murphy is away from the newsroom until October 10, 2017 and will
respond to your e-mail then. In the meantime, if you wish to contact
CTV News please e-mail atlanticnews@bellmedia.ca or call (902)
454-3200.
On 10/7/17, David Amos motomaniac333@gmail.com wrote:
>
> ---------- Forwarded message ----------
> From: David Amos motomaniac333@gmail.com
> Date: Mon, 18 Sep 2017 11:57:55 -0400
> Subject: So Stephen McGrath if not you then just exactly who sent me
> this latest email from your office?
> To: PREMIER PREMIER@gov.ns.ca, jamiebaillie
> jamiebaillie@gov.ns.ca, mcgratst@gov.ns.ca, justmin
> justmin@gov.ns.ca, StephenMcNeil@ns.aliantzinc.ca
> terry.seguin@cbc.ca, "Jacques.Poitras"Jacques.Poitras@cbc.ca,
> "steve.murphy"steve.murphy@ctv.ca, nmoore > "David.Akin"David.Akin@globalnews.ca, "Davidc.Coon"
> Davidc.Coon@gmail.co, "Bill.Morneau"Bill.Morneau@canada.ca,
> "Dominic.Cardy"Dominic.Cardy@gnb.ca, "atlantic.director"
> atlantic.director@taxpayer.com
> blaine.higgs@gnb.ca, BrianThomasMacdonald
> BrianThomasMacdonald@gmail.com
> mike.obrienfred@gmail.com, premier premier@gnb.ca, briangallant10
> briangallant10@gmail.com, classaction@wagners.co, oldmaison
> oldmaison@yahoo.com, "leanne.murray"
> leanne.murray@mcinnescooper.
> Cc: David Amos david.raymond.amos@gmail.com,
> ronald.j.macdonald@novascotia.
> michael.comeau@gnb.ca, JUSTWEB@novascotia.ca
>
> ---------- Forwarded message ----------
> From: Justice Website
> Date: Mon, 18 Sep 2017 14:21:11 +0000
> Subject: Emails to Department of Justice and Province of Nova Scotia
> To: motomaniac333@gmail.com
>
> Mr. Amos,
> We acknowledge receipt of your recent emails to the Deputy Minister of
> Justice and lawyers within the Legal Services Division of the
> Department of Justice respecting a possible claim against the Province
> of Nova Scotia. Service of any documents respecting a legal claim
> against the Province of Nova Scotia may be served on the Attorney
> General at 1690 Hollis Street, Halifax, NS. Please note that we will
> not be responding to further emails on this matter.
>
> Department of Justice
>
>
>
> ---------- Forwarded message ----------
> From: David Amos motomaniac333@gmail.com
> Date: Wed, 9 Aug 2017 17:22:16 -0400
> Subject: Attn Stephen McGrath Heres a little Deja Vu about Emera
> To: mcgratst@gov.ns.ca, justmin justmin@gov.ns.ca,
> StephenMcNeil@ns.aliantzinc.ca
> Cc: David Amos david.raymond.amos@gmail.com
>
> ---------- Forwarded message ----------
> From: David Amos motomaniac333@gmail.com
> Date: Sat, 25 May 2013 01:17:50 -0300
> Subject: Fwd: Re NSP Maritime Link and the circus begins again for
> Emera during another election EH Mr Smellie?
> To: gretchenf@sierraclub.ca, wesley@teratrends.ca,
> jdalton@poweradvisoryllc.com, odenig@gov.ns.ca, holletjn@gov.ns.ca,
> millermn@gov.ns.ca, deckerga@gov.ns.ca, birdmw@gov.ns.ca,
> smccoom@gov.ns.ca, spencecc@gov.ns.ca, brothert@gov.ns.ca,
> mcgratst@gov.ns.ca
> Cc: David Amos david.raymond.amos@gmail.com,
> maurice@theshorelinejournal.
> peter.alien@dal.ca, patbates@ns.sympaticao.ca,
> brenden.haley@gmail.com, ismet.ugursal@dal.ca
>
> ---------- Forwarded message ----------
> From: David Amos motomaniac333@gmail.com
> Date: Sat, 25 May 2013 00:12:04 -0300
> Subject: Fwd: Re NSP Maritime Link and the circus begins again for
> Emera during another election EH Mr Smellie?
> To: StephenMcNeil@ns.aliantzinc.ca
> Baillijr@gov.ns.ca, portercg@gov.ns.ca, edgeja@gov.ns.ca,
> mcdonaci@gov.ns.ca, tdalgleish@davis.ca, david.landrigan@nspower.ca,
> nicole.godbout@nspower.ca, tim.wood@nspower.ca, lana.myatt@nspower.ca,
> robert.groves.taag@gmail.com, bclarke@burchells.ca,
> slewis@sternpartners.com, archiestewart@eastlink.ca, "steve.murphy"
> steve.murphy@ctv.ca, "steve.graham"
> Cc: David Amos david.raymond.amos@gmail.com, trussell
> trussell@nunatukavut.ca, "justin.trudeau.a1"
> justin.trudeau.a1@parl.gc.ca, justmin justmin@gov.ns.ca
>
> ---------- Forwarded message ----------
> From: "Smellie, James"James.Smellie@gowlings.com
> Date: Fri, 24 May 2013 20:53:17 -0600
> Subject: Out of Office AutoReply: Re NSP Maritime Link and the circus
> begins again for Emera during another election EH Mr Smellie?
> To: David Amos motomaniac333@gmail.com
>
> I am away on business for an extended period. Please contact my
> assistant Brenda at 403-298-1950 or brenda.swales@gowlings.com, if you
> need immediate assistance.
>
> IMPORTANT NOTICE: This message is intended only for the use of the
> individual or entity to which it is addressed. The message may
> contain information that is privileged, confidential and exempt
> from disclosure under applicable law. If the reader of this
> message is not the intended recipient, or the employee or agent
> responsible for delivering the message to the intended recipient,
> you are notified that any dissemination, distribution or copying of
> this communication is strictly prohibited. If you have received
> this communication in error, please notify Gowlings immediately by
> email at postmaster@gowlings.com. Thank you.
>
> ---------- Forwarded message ----------
> From: David Amos motomaniac333@gmail.com
> Date: Wed, 13 Sep 2017 11:59:18 -0400
> Subject: ATTN Ronald J. MacDonald RE Federal Court File No T-1557-15
> we just talked again
> To: ronald.j.macdonald@novascotia.
> ian.hanamansing@cbc.ca, "Larry.Tremblay"Larry.Tremblay@rcmp-grc.gc.ca
> Cc: David Amos david.raymond.amos@gmail.com, dcmurray@scclaw.ca,
> dpink dpink@nsbs.org, dcmurray@criminaldefence.com, "denis.landry2"
> denis.landry2@gnb.ca
>
> Ronald J. MacDonald
> Director:
> Called to the bar: 1985 (NS); Q.C.2002 (NS)
> Nova Scotia Serious Incident Response Team
> Ste. 203, Sir John Thompson Bldg.
> 1256 Barrington St.
> Halifax, Nova Scotia B3J 1Y6
> Phone: 902-424-2010
> Cell 902v718 9707
> Fax:
> Email: ronald.j.macdonald@novascotia.
>
>
> ---------- Forwarded message ----------
> From: David Amos motomaniac333@gmail.com
> Date: Fri, 1 Sep 2017 08:53:48 -0400
> Subject: Attn Michael Comeau RE Federal Court File No T-1557-15 After
> listening to you and your pal Sheriff George Oram talk on CBC about
> guns for your minions to your buddy Terry Sequin I gave you both one
> last call
> To: michael.comeau@gnb.ca, "denis.landry2"denis.landry2@gnb.ca,
> george.oram@gnb.ca, "serge.rousselle"serge.rousselle@gnb.ca,
> "blaine.higgs"blaine.higgs@gnb.ca, "Dominic.Cardy"
> Dominic.Cardy@gnb.ca, "David.Coon"David.Coon@gnb.ca,
> "brian.gallant"brian.gallant@gnb.ca, briangallant10
> briangallant10@gmail.com, "Bill.Morneau"Bill.Morneau@canada.ca,
> "lisa.raitt"lisa.raitt@parl.gc.ca, media-medias@gnb.ca,
> "steve.murphy"steve.murphy@ctv.ca, "Jacques.Poitras"
> Jacques.Poitras@cbc.ca, "David.Akin"David.Akin@globalnews.ca,
> gopublic gopublic@cbc.ca, "jeff.michaelson"
> jeff.michaelson@gnb.ca, peacock.kurt@telegraphjournal.
> "hance.colburne"hance.colburne@cbc.ca
> Cc: David Amos david.raymond.amos@gmail.com, jsauvageau@stu.ca,
> "terry.seguin"terry.seguin@cbc.ca, david david@lutz.nb.ca,
> "david.eidt"david.eidt@gnb.ca, "Larry.Tremblay"
> Larry.Tremblay@rcmp-grc.gc.ca, "Liliana.Longo"
> Liliana.Longo@rcmp-grc.gc.ca, "jan.jensen"
> jan.jensen@justice.gc.ca, "bill.pentney"
> bill.pentney@justice.gc.ca, washington field
> washington.field@ic.fbi.gov, mcu mcu@justice.gc.ca
>
> You wereno doubt too busy paying attention to dope and Jazz to talk to
> me and the very corrupt Sheriff is on vacation as usual Correct?
>
> http://www.cbc.ca/news/canada/
>
> Jean Sauvageau - Armed Courts
> Air Date: Aug 31, 2017 1:00 AM AT
>
> Information Morning - Fredericton
> Jean Sauvageau - Armed Courts
> 00:21 10:42
>
> Terry Seguin talks to a criminology professor who questions the
> Premier's decision to introduce sidearms to the court system.
>
> Jean Sauvageau
> Department of Criminology
> Assistant Professor (1999)
> Associate of Arts in Criminal Justice (Camosun College)
> Honours B.S.Sc. in Criminology (University of Ottawa)
> M.A. in Criminology (University of Ottawa)
> Ph.D. in Criminology (Université catholique de Louvain)
>
> Telephone (506) 452-0478
> Fax (506) 450-9615
> email:jsauvageau@stu.ca
>
> MICHAEL COMEAU
> Deputy Minister
> Justice and Public Safety
> Phone : (506) 453-2208
> Fax : (506) 453-3870
> Email : michael.comeau@gnb.ca
>
> GEORGE ORAM
> Regional Sheriff
> Saint John, Sheriff Services (Regional Office )
> Justice and Public Safety
> Phone : (506) 658-2569
> Fax : (506) 658-2126
> Email : george.oram@gnb.ca
https://nsuarb.novascotia.ca/about/member-biographies
Stephen McGrath, LL.B.
Mr. McGrath was appointed as a full-time Board Member on April 25, 2018 and as Chair on March 1, 2022.
Before joining the Board, Mr. McGrath was a Director of Legal Services with the Nova Scotia Department of Justice, with shared responsibility for the management of legal services for departments and agencies throughout the provincial government. Mr. McGrath was with the Department of Justice for 16 years, and before assuming his role as director, held various positions in the Legal Services Division. His work included advice to the Nova Scotia Department of Energy and appearances before courts and administrative bodies on behalf of numerous departments and agencies of the Government of Nova Scotia. Mr. McGrath was awarded the Premier’s Award of Excellence in 2009 for his work to determine the methodology for Crown Share Adjustment Payments to the Province of Nova Scotia under the Canada-Nova Scotia Offshore Petroleum Resources Accord. Before joining the Province, Mr. McGrath was a partner with the Dartmouth, Nova Scotia law firm, Boyne Clarke. During his 10 years there, his practice focused on commercial litigation and environmental law.
Mr. McGrath was a member and past chair of the Board of Directors of the Regional Residential Services Society and was a former member of the Board of Directors of the Help Line Society. He has also been a volunteer coach with minor hockey.
Mr. McGrath is a member of the Nova Scotia Barristers’ Society. He was formerly a Council Member of the Society, is a past chair of the Society’s Code of Professional Conduct Committee and a member of the Ethics Advisory Committee. He is a member of the Canadian Bar Association and was previously a Member of the Executive and Council Member with the Association, and past chair of the Young Lawyers and Civil Litigation and Alternative Dispute Resolution Sections of the Association. He is also a member of CAMPUT: Canada’s Energy and Utility Regulators and the National Association of Regulatory Utility Commissioners (US).
Roland A. Deveau, K.C.
Roland Deveau was appointed as a Member of the Nova Scotia Utility and Review Board in December, 1998 and named as Vice Chair on August 20, 2012.
Before joining the Board, Mr. Deveau practiced law with the firm of Pink, Macdonald, Harding in Yarmouth and Pointe de L'Église, Nova Scotia, where his preferred areas of practice were municipal, administrative and commercial law. He was also involved in various community economic development initiatives, including serving as President of the local Chamber of Commerce.
Mr. Deveau is a Past President of the provincial association of French speaking lawyers, as well as a former director and officer of the national “Fédération canadienne des juristes d'expression francaise de common law". He has also served on Bar Council of the Barristers' Society. In 2016 and 2017, he served as President of Golf Canada (the sport's governing body in Canada), and has chaired its Audit and Risk and Compensation Committees. He was Canada’s representative on the R&A Amateur Status Committee in St. Andrews, Scotland from 2014 to 2016. He is a nationally certified golf rules official who has officiated in both provincial and national amateur and professional golf championships, including the PGA Tour.
He holds a Bachelor of Law and a Bachelor of Science (Chemistry) from Dalhousie University and received his King's Counsel (K.C.) designation in 2010. He is a member of CAMPUT: Canada’s Energy and Utility Regulators, the National Association of Regulatory Utility Commissioners (US), the Nova Scotia Barristers' Society and the Canadian Bar Association.
Richard J. Melanson, LL.B.
Mr. Melanson was appointed as a full-time member of the Board on July 28, 2016. Originally from Corberrie, Nova Scotia, before joining the Board, Mr. Melanson practiced law in Halifax for 27 years with Blois Nickerson and Bryson LLP. He had extensive experience in administrative law, having acted as an outside counsel to the Board for over twenty years and acted for or appeared before various other administrative tribunals and agencies. He also practiced in the areas of corporate-commercial law, real property transactions, bankruptcy and insolvency and civil litigation. He was involved in the firm’s management, chairing the firm’s articling committee, together with sitting on the firm’s partnership and associates compensation committees.
Mr. Melanson received his Bachelor of Arts (French major-1981) and Bachelor of Education (1983) from Université Sainte-Anne. He is a graduate of Dalhousie Law School, receiving the University Medal in 1988, awarded to the student who achieved the highest average of those obtaining first class distinction in third year studies. He was admitted to the Nova Scotia Bar in 1989.
Mr. Melanson has been an active volunteer in the legal community, including sitting as a Commissioner on the Law Reform Commission of Nova Scotia and the Board of Directors of the provincial association of French speaking lawyers. He has also served as a volunteer with various professional and civic organizations, including chairing the discipline committee as a member of the Board of Examiners of the Nova Scotia Association of Social Workers and holding the position of treasurer with Canadian Parents For French (Nova Scotia).
He is a member of the Nova Scotia Barristers’ Society, the Canadian Bar Association, CAMPUT: Canada’s Energy and Utility Regulators, and the National Association of Regulatory Utility Commissioners (US).
Steven Murphy, MBA, P.Eng.
Mr. Murphy was appointed as a full-time member of the Board on July 28, 2016. Prior to joining the Board, Mr. Murphy worked for 28 years in the Engineering Consulting Industry. He previously worked for WSP Canada and AECOM Canada Ltd., where he served as Senior Manager for Atlantic Canada for both firms. He also worked for CBCL Limited as the Manager of the Municipal Engineering Department, as well as a Senior Project Manager. The primary areas of his engineering practice were water, wastewater and municipal infrastructure projects, providing him the opportunity to work with a number of Municipalities and Utilities throughout Atlantic Canada.
Mr. Murphy holds a Diploma in Engineering from Dalhousie University, a Bachelor of Civil Engineering from Technical University of Nova Scotia, and a Masters of Business Administration from Dalhousie University. He has been a registered professional engineer with Engineers Nova Scotia since 1990. In 2003, he was presented with the Citizenship Award from Engineers Nova Scotia. He is also a past member of the Atlantic Canada Water and Waste Water Association Scholarship Review Committee, the American Water Works Association, and the American Public Works Association.
Mr. Murphy has also demonstrated professional and community service involvement. On the professional side, he is a former member of the Board of Directors of the Consulting Engineers of Nova Scotia and Dalhousie Engineering Alumni Association. On the community side, he served as Chair of the Halifax Regional Municipality (HRM) Downtown Design Review Committee. He is also an Associate Member and Past National Vice-President of the Canadian Progress Club, where he was presented with a Canadian Progress Club National Member of the Year Award in 2009.
He is a member of CAMPUT: Canada’s Energy and Utility Regulators, and the National Association of Regulatory Utility Commissioners (US).
Jennifer Nicholson, CPA, CA
Jennifer Nicholson was appointed as a Member of the Nova Scotia Utility and Review Board in April 2018.
Jennifer is a graduate of Saint Mary’s University and in 1997 qualified as a Chartered Accountant (now a Chartered Professional Accountant). She qualified with Ernst & Young and following that has held a number of positions. She was Senior Director Stakeholder Relations for Emera from 2006 to 2010. Following that, she was Executive Vice President and Vice President Investor Relations with Brigus Gold. She was CFO and Director of Risk, Environment, Social and Governance for Halterm and prior to being appointed to the Board was a partner in Executive Finance Partners Inc. which, among other things, provided courses in Ethical Intelligence, Board Governance and Executive Presence and provided CFO for hire services for small and medium sized businesses. For a number of years she was a lecturer at Saint Mary’s University and an instructor at the Atlantic School of Chartered Accountancy. Among Jennifer’s volunteer activities are Board Chair of the Blue Nose Marathon, member of the Saint Mary’s University Board of Governors, Treasurer and Secretary of CAMPUT, past Council member of the Institute of Chartered Accountants, Treasurer of Canadian Martyrs Minor Basketball and a number of other community and charitable organizations.
Bruce Fisher, MPA, CPA, CMA
Mr. Fisher was appointed as a full-time member of the Board on March 1, 2022.
Prior to his appointment Mr. Fisher served in various positions at the Halifax Regional Municipality, most recently as Director of Financial Policy and Planning. During that time he was involved in policymaking on a broad range of topics including budgets, taxation, debt, reserves and low income assistance. He served as a volunteer with the Federation of Canadian Municipalities, advising municipal governments in Sri Lanka and the Ukraine. He was previously employed with the Federal Department of Industry in Ottawa and the Nova Scotia Department of Finance.
Mr. Fisher has previously appeared as an expert witness before the Nova Scotia Utility and Review Board and has lectured at Dalhousie’s School of Public Administration. He is a graduate of the University of Kings College (Political Science), Dalhousie University (Masters of Public Administration (MPA)) and is a Certified Public Accountant (CPA, CMA).
Julia E. Clark, LL.B
Ms. Clark was appointed to the Board on March 1, 2022.
Prior to that she served as a Managing Lawyer with the Legal Services Division of the Department of Justice. While with the Department she was a member of the Government and Social Services Team, providing legal advice to the Department of Education and Early Childhood Development, and formerly to the Alcohol, Fuel, Tobacco and Gaming Division of Service Nova Scotia and the Department of Economic Development. Prior to joining the Province she spent 12 years with Global Affairs Canada, working as a diplomat and legal specialist in Ottawa and at the Canadian Embassy in Washington DC as a Representative of Canada to the Organization of American States. Her legal work with the federal government focused on International Human Rights and Economic Law and Canada’s Economic Sanctions regime.
Ms. Clark was called to the Nova Scotia Barristers Society in 2005. She is a graduate of Mount Allison University and the University of New Brunswick Law School. She serves as an executive member of the Board of Directors of the Lung Association of Nova Scotia and Prince Edward Island and volunteers with a number of community-level organizations.
M. Kathleen McManus, K.C.
Ms. McManus was appointed to the Board on November 30, 2022
M. Kathleen McManus, K.C., born and raised in Halifax, Nova Scotia, received her Bachelor of Science degree in mathematics in 1985 and her Bachelor of Arts (Honours) degree in history in 1987 from Dalhousie University. As a Commonwealth Scholar, she received her Doctorate of Philosophy in Constitutional History from the London School of Economics, London, U.K. in 1992. In 1995, she received her Bachelor of Law degree from Dalhousie University. Upon completion of her clerkship with Justice Arthur J. Stone at the Federal Court of Appeal, she was admitted to the Ontario Bar in 1997 and to the Nova Scotia Bar in 2006. She joined the Department of Justice (Canada) in Ottawa in 1997 where she practiced as a civil litigator. She continued this practice upon her move to the Department of Justice (Canada) in Halifax. Her primary areas of practice include administrative law, employment law, constitutional law and Crown law. She has appeared before all levels of court in Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario and the Federal Courts, as well as the Canadian International Trade Tribunal and the Canadian Human Rights Tribunal. She was appointed King’s Counsel in 2022.
Throughout her career, Ms. McManus has been engaged with her profession and community. She is currently serving as President of the Canadian Bar Association – Nova Scotia Branch and was actively involved with the Nova Scotia Barristers’ Society and The Advocates’ Society. She has been a part-time member of the faculty at Dalhousie Schulich School of Law since 2002, where she teaches Crown law. She is the co-founder and co-chair of the Crown Law Symposium, an annual event in partnership with the Schulich School of Law, Dalhousie University.
This news release constitutes a “designated news release” for the purposes of Emera’s prospectus supplement dated August 12, 2021 to its short form base shelf prospectus dated August 5, 2021
HALIFAX, Nova Scotia –Emera Inc. (TSX: EMA) and its wholly-owned subsidiary Nova Scotia Power (NS Power) announced today that NS Power has filed a proposed settlement agreement for its 2022-2024 General Rate Application (GRA) with the Nova Scotia Utility and Review Board (UARB). The settlement, which addresses both fuel and non-fuel rates, was reached between NS Power and key customer representatives, including Nova Scotia’s Consumer Advocate, the Small Business Advocate, large customers represented by the Industrial Group, municipal utilities, Dalhousie University as well as advocates for the environment and low-income customers.
If approved by the UARB, the settlement will implement Bill 212, the provincially legislated cap on non-fuel rates for 2023 and 2024. The agreement addresses the recovery of fuel costs over the settlement period and would also establish a Demand Side Management (DSM) rider. Combined, these amounts would result in rate increases of 6.9% each year for 2023 and 2024. In addition, any under or over recovery of fuel costs would be addressed through the UARB’s established Fuel Adjustment Mechanism (FAM) process.
“Reaching this settlement is a remarkable demonstration of stakeholders’ and customer representatives’ commitment to working together to reach constructive solutions for customers,” says Peter Gregg, President and CEO of NS Power. “Working within the constraints of Bill 212, this settlement addresses all outstanding items of the GRA, and provides important price predictability for customers at this time of high inflation and broad economic challenge.”
Other elements of NS Power’s GRA addressed in the settlement include agreement on a storm rider for the years 2023-2025, providing clarity around the recovery of costs for major storms and extreme weather events in future. It also establishes an equity thickness of 40 per cent for rate-making purposes and will result in $137 million in forecasted incremental non-fuel revenues over the settlement period, compared to $240 million filed within the GRA. A full copy of the proposed settlement agreement can be found at www.uarb.ca or www.nspower.ca/rateapplication.
“This is a positive step forward,” said Scott Balfour, President and CEO, Emera Inc. “Achieving successful and balanced regulatory outcomes within strong regulatory compacts is critical to our ability to deliver first and foremost to our customers, but to all other stakeholders as well.”
Today’s agreement is the latest in a series of regulatory settlements across Emera’s portfolio that demonstrate the strength of Emera’s teams and strategy as well as Emera’s ability to work collaboratively with stakeholders to reach outcomes that are in the best interest of customers. In the last 24 months, New Mexico Gas, Tampa Electric and Peoples Gas have also concluded important rate cases through settlement agreements with customer representatives.
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Forward Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information requires Emera and NS Power to make assumptions and is subject to inherent risks and uncertainties. These statements reflect Emera management’s and NS Power management’s current beliefs and are based on information currently available to Emera management and to NS Power management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that Emera’s and NS Power’s assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in Emera’s and NS Power’s securities regulatory filings, including under the heading “Enterprise Risk and Risk Management” in Emera’s and in NS Power’s annual Management’s Discussion and Analysis, and under the heading “Principal Financial Risks and Uncertainties” in the notes to Emera’s and to NS Power’s annual and interim financial statements, which can be found on SEDAR at www.sedar.com.
About Emera Inc.
Emera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia, with approximately $40 billion in assets and 2021 revenues of more than $5.7 billion. The company primarily invests in regulated electricity generation and electricity and gas transmission and distribution with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments in Canada, the United States and in three Caribbean countries. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F, EMA.PR.H, EMA.PR.J and EMA.PR.L. Depositary receipts representing common shares of Emera are listed on the Barbados Stock Exchange under the symbol EMABDR and on The Bahamas International Securities Exchange under the symbol EMAB. Additional information can be accessed at www.emera.com or at www.sedar.com.
About Nova Scotia Power
Nova Scotia Power Inc. is a 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 approximately 540,000 residential, commercial and industrial customers across Nova Scotia. The company is focused on new technologies to enhance customer service and reliability, reduce emissions and add renewable energy. Nova Scotia Power has over 2000 employees and $4.5 billion in operating assets. Learn more at www.nspower.ca.
Media:
Dina Seely
Emera Inc.
902-428-6951
media@emera.com
Jackie Foster
Nova Scotia Power
(902) 225-4735
Today’s announcement by the Government of Nova Scotia poses serious risks to our ability to continue to serve our customers reliably and prepare for Nova Scotia’s future energy needs.
Customers count on us to deliver reliable electricity, every day. It’s why we work to strengthen our system across the province and why we work to restore power safely and as quickly as possible after storms like Hurricane Fiona.
The local and global economy have been faced with many challenges since we filed our general rate application (GRA) earlier this year. We know many Nova Scotians are facing difficult times because of these pressures and we’re sensitive to the impact of any increase in electricity rates. We have a responsibility to manage costs and keep power bills as low as possible. This is why our team of more than 2,000 Nova Scotians works to ensure we’re operating as efficiently and effectively as possible– a focus that has enabled us to avoid an increase in non-fuel power rates for the last 10 years despite rising operational costs over that time.
As an electric utility with strong regulatory oversight, we’re disappointed and concerned that the Government of Nova Scotia would use legislation to override what is meant to be a politically independent process.
As part of our rate application, we requested over $500 million to strengthen our energy infrastructure and fund 60 new front-line jobs directly related to reliability. Today’s proposed legislation limits this planned investment and the amount of storm preparedness and system hardening we can do in the province. As recent storms including Hurricane Fiona have made clear, severe storms will keep coming. Putting off these critical investments until later is not a solution.
This proposed legislation would impede our ability to meet targets set by the Province to reach 80% renewable energy and be off coal by 2030. We’ve been focused on meeting these targets because they’re critical to building a sustainable energy future. But we can’t meet them without making the investments needed to get there.
As we work over the coming days and weeks to fully understand the impacts of this proposed legislation, our team of dedicated Nova Scotians remains committed to delivering safe, reliable and cleaner energy to our customers. Serving our customers will always be our focus, despite the constraints imposed by this proposed legislation.
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Forward Looking Information
This statement contains forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information requires Nova Scotia Power to make assumptions and is subject to inherent risks and uncertainties. These statements reflect Nova Scotia Power management’s current beliefs and are based on information currently available to Nova Scotia Power management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that Nova Scotia Power’s assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in Nova Scotia Power’s securities regulatory filings, including under the heading “Enterprise Risks and Risk Management” in Nova Scotia Power’s annual Management’s Discussion and Analysis, and under the heading “Principal Financial Risks and Uncertainties” in the notes to Nova Scotia Power’s annual and interim financial statements, which can be found on SEDAR at www.sedar.com.
About Nova Scotia Power
Nova Scotia Power Inc. is a 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 more than 540,000 residential, commercial and industrial customers across Nova Scotia. The company is focused on new technologies to enhance customer service and reliability, reduce emissions and add renewable energy. Nova Scotia Power has over 2,000 employees and $4.5 billion in operating assets. Learn more at www.nspower.ca.
Media Contact:
Jacqueline Foster
NSP Senior Communications Advisor
902-225-4735
Jacqueline.foster@nspower.ca
Peter Gregg
President and CEO
Peter Gregg is President & CEO of Nova Scotia Power; a role he assumed in October 2020. In his role, Peter is focused on planning for Nova Scotia’s clean energy future while overseeing the delivery of safe, reliable electricity to customers across the province.
Peter is an experienced leader in the Canadian energy sector. Prior to his role at NS Power, Peter most recently served as the President & CEO of the Independent Electricity System Operator (IESO), where he oversaw the operation of Ontario’s bulk electricity system. He was also President and CEO of Enersource from 2014 to 2016, where he was integral in the merger of four of Ontario’s largest local distribution companies to create Alectra Inc., the second largest municipally owned utility in North America. Peter served as COO at Hydro One Networks, overseeing energy transmission and distribution across Ontario.
Throughout his career, Peter has been recognized for his leadership abilities and in 2015 and 2016 received the Ontario Energy Association’s Leader of the Year Award.
Mr. Gregg is a member of the Electricity Subsector Coordinating Council, a physical and cyber security collaboration between the electricity sector and the governments of Canada and the United States. He is also a member of the Canadian Electricity Association Board of Directors.
Peter received a Master of Business Administration from the Richard Ivey School of Business at University of Western Ontario and holds the Institute of Corporate Directors ICD.D (Certified Director) designation.
Dave Pickles
Chief Operating Officer
Dave Pickles was appointed Chief Operating Officer of Nova Scotia Power Inc. in September 2022 to oversee the operations of the company. His scope of responsibility includes Power Production, Transmission and Distribution, Fuel Procurement and Energy Management and Enterprise Asset Management.
Dave began his career at Nova Scotia Power over 20 years ago and has extensive power generation and energy delivery experience in both Canada and the US. Most recently, he served as Vice President of Electric Delivery for Tampa Electric. Dave and his family relocated to Tampa in 2018 and returned to Nova Scotia in August of 2022. Prior to Tampa Electric, Dave was Vice President of Operations for Emera Energy. He oversaw the operation of Emera Energy owned merchant power facilities in New England, New Brunswick, and Nova Scotia.
Dave has a bachelor’s degree in chemical engineering from Dalhousie University. He serves as a member of the Power Delivery Committee for the Association of Edison Illuminating Companies (AEIC). While living in Tampa, he served as board member of the Southeastern Electric Exchange (SEE) and was an active board member of the Hillsborough Education Foundation.
Rene Gallant
Vice President, Strategy and Stakeholder Engagement
Rene Gallant was appointed Vice President of Nova Scotia Power Inc. in September 2022 to oversee the strategic planning and business development of the company as well as stakeholder and community engagement.
Rene began his career with the Emera group of companies over 15 years ago at Nova Scotia Power, as General Manager of Regulatory Affairs and later as Vice President. With wide-ranging experience in regulatory affairs and business development, he served most recently as Chief Operating Officer of New Mexico Gas Company. Prior to that, he was Vice President of Strategy and Business Development at Tampa Electric Company. And as Executive Vice President of Emera Newfoundland and Labrador, Rene oversaw legal and regulatory affairs, finance and strategy.
Rene holds a Bachelor of Laws from Dalhousie Law School. He served as the Nova Scotia representative on the Council of the Federation of Law Societies of Canada and served on the Public Affairs and Government Relations Committee. As a Past President of the Nova Scotia Barristers Society, Rene chaired the Governance and Nominating Committee, as well as serving on a working group that led the Society’s Transforming Regulation initiative, which was begun under Rene’s leadership.
Judith Ferguson
Executive Vice President, Regulatory, Legal and Government Relations
Judith has been with Nova Scotia Power since 2014. She was appointed Executive Vice President, Regulatory, Legal and Business Planning in March 2016. Prior to this, she was the Vice President, Corporate Affairs.
Judith oversees all legal and regulatory aspects of Nova Scotia Power's business and is also focused on the company’s strategic direction. In addition, she works with all levels of government on the various ways Nova Scotia Power can contribute to the social and economic vitality of the province.
Judith retired from the Province of Nova Scotia where she was Deputy Minister of Justice. Prior to this, Judith served as a Deputy Minister in two other departments and she began her career in government as a legal advisor for the Nova Scotia Department of Justice.
She holds a Bachelor of Laws degree from Dalhousie University Law School and a Bachelor of Arts degree from the University of King’s College.
Judith sits on the Board of Directors of Phoenix House, is Vice-Chair of the Board of the Nova Scotia Community College and is a past member of the Board of the Children’s Aid Society of Halifax.
Christopher Smith
Executive Vice President, Finance
Chris joined Nova Scotia Power as Vice President of Finance in 2017.
Chris is responsible for leading Nova Scotia Power’s Finance team, ensuring that our financial management and reporting, as well as our financial planning, risk management and internal controls are consistently best-in-class. As a member of the executive leadership team, he plays a key role in leading our overall business and driving our corporate strategy and business priorities to success.
Previously, Chris was President of Heritage Gas Limited, Nova Scotia’s natural gas distributor, since 2015. He joined Heritage Gas in 2004 and held various senior leadership positions. Previously, Chris held various financial and management roles with private sector organizations.
Chris holds a Bachelor of Commerce degree from Dalhousie University and is a Chartered Professional Accountant.
Chris is also a member of the Board of Directors of Sport Nova Scotia, Sacred Heart School of Halifax and the Dalhousie University Faculty of Management. He is a past member of the Board of the Canadian Gas Association, the Symphony Nova Scotia Board, and the Dalhousie University Board of Governors, where he also chaired the Audit Committee.
Mark Sidebottom
Chief Clean Energy Officer
Mark was appointed Chief Clean Energy Officer of Nova Scotia Power Inc. in 2022, after holding the Chief Operating Officer position since 2016. In 2021, Mark’s focus moved to leading the company’s decarbonization strategy, with a mandate to significantly reduce carbon emissions while integrating new technologies, innovations, and greener solutions to meet the energy needs of customers.
Mark began his career at Nova Scotia Power over 30 years ago and throughout his tenure has managed almost all functions of generating and delivering electricity to customers. He designed, built and managed power plants, ensured reliable delivery of electricity to retail customers and managed fuels portfolios. As Vice President of Generation, Mark managed one of the fastest transitions to renewables any utility has undertaken as Nova Scotia Power evolves from 9% renewable energy in 2010 to approximately 60% by 2022.
Mark is a past Chair of the Board of Directors of the Halifax Chamber of Commerce. He is a past Treasurer and board member of Junior Achievement Nova Scotia, the Fossil Advisory Board and the Silicon Island Advisory Board. Mark is also the former Chair of the Generation Council for the Canadian Electricity Association.
Mark holds a Bachelor degree in Mechanical Engineering from the Technical University of Nova Scotia (now part of Dalhousie University) and is a registered Professional Engineer with Engineers Nova Scotia.
Board of Directors
Our board is made up of nine members and is chaired by Scott Balfour.
Scott Balfour
Halifax, Nova Scotia
Mr. Balfour was appointed Chair of the board of directors in May 2016. He has been Chief Operating Officer, Northeast and Caribbean since March 1, 2016. Prior to that, he had been Executive Vice President and Chief Financial Officer since April 16, 2012. From May 2011 to April 2012, Mr. Balfour was President of Ensimian Capital Corporation. From September 2005 to January 2011, he was President and Chief Financial Officer of Aecon Group Inc., a Canadian publicly traded construction and infrastructure development company.
James Eisenhauer
Lunenburg, Nova Scotia
Mr. Eisenhauer returned to Nova Scotia Power’s Board in May 2019 as Lead Independent Director. He previously served on the Board between 2008 and 2016, and as Chair from 2011 to 2016. Mr. Eisenhauer is the President and CEO of AGL Group Holdings Limited (formerly ABCO Group Limited). He is a Professional Engineer and a Chartered Professional Accountant. Committed to the success of our region, he served as a member of the Board of Nova Scotia Business Inc. from 2005 to January 2013. Currently, he is a member of the Board of Stelia Aerospace North America Inc., a member of the Advisory Board of Atlantic Industries Limited, and a board member of Develop Nova Scotia.
Lee Bragg
Fall River, Nova Scotia
Mr. Bragg has been a board member since 2010. He has been CEO of Eastlink, a cable and communications company, and its associated communications companies since 1999. Prior to 1999, Mr. Bragg held various management positions with the Bragg Group of Companies.
Sandra Greer
Dartmouth, Nova Scotia
Ms. Greer has been on the board of directors since 2014. She is the former President and CEO of AMIRIX Systems Inc./Vemco (2002-2012), a company engaged in the design, manufacturing and worldwide export of underwater acoustic marine tracking devices. Prior to AMIRIX, Ms. Greer held various management positions with Bristol Communications and MTT/Aliant (now Bell Aliant).
Raymond Ivany
Wolfville, Nova Scotia
Mr. Ivany has been a board member since 2011. He has been President and Vice Chancellor of Acadia University since April 2009 and from 2007 to 2009 was Chair of the Workers’ Compensation Board of Nova Scotia. Mr. Ivany was President and CEO of Nova Scotia Community College from 1998 to 2005 and, prior to that, served as Executive Vice-President at the University College of Cape Breton.
J. Mark Rodger
Toronto, Ontario
Mr. Rodger joined the board of directors in 2018. He is the Toronto Regional Co-Chair of the Electricity Markets Group at Borden Ladner Gervais LLP, and a senior partner in the Toronto office. For over 25 years, Mr. Rodger has served as counsel to a broad range of government, industrial, institutional and commercial energy consumers; local distribution and transmission companies; generators; energy retailers; out-of-province electricity importers; and, energy regulators.
Rick Janega
Halifax, Nova Scotia
Mr. Janega joined the board in May, 2018. He is Chief Operating Officer, Electric Utilities, Canada, US Northeast and Caribbean at Emera Inc. and President and CEO of Emera Newfoundland & Labrador (ENL). Rick held a series of increasingly senior roles, including Chief Operating Officer for Nova Scotia Power, overseeing transmission and distribution, fuels, generation and customer service. He began his career working in construction management, manufacturing, and the pulp and paper industry.
Julia Rivard Dexter
Dartmouth, Nova Scotia
Ms. Rivard Dexter joined the board in February, 2020. An innovative tech entrepreneur and former Olympian, Ms. Dexter has led several successful technology ventures, including her time as CEO of SheepDogInc.ca, Google’s first North American premier Apps partner. She is currently co-founder and CEO of Squiggle Park which aims to improve literacy rates for children worldwide. An experienced board member, Julia is also recognized as a technology industry leader with a history of award-winning performance.
Cassandra Dorrington
Toronto, Ontario
Ms. Dorrington has spent more than 30 years working in private and not-for-profit organizations. After working in various human resources roles for 17 years with MTT/Aliant Inc., the New Glasgow native worked with Deloitte in the human capital practice before cofounding and becoming President of Vale & Associates Human Resource Management and Consulting. For six years, Cassandra advised clients on everything from HR strategy, performance management and executive and senior management coaching. In 2010 she moved to Toronto to become President & CEO of the national, not-for-profit organization the Canadian Aboriginal and Minority Supplier Council (CAMSC). Ms. Dorrington is currently Chair of the FAIR committee and Vice Chair of the Dalhousie University Board of Governors and past Board Chair for the Black Business Enterprises.
https://www.cbc.ca/news/canada/nova-scotia/emera-boss-more-than-8m-in-2021-1.6388248
Emera boss pockets more than $8M in 2021
Parent company of Nova Scotia Power released its annual report on compensation Thursday
The parent company of Nova Scotia Power released its annual report on compensation paid to its five top executives Thursday.
Compensation includes base salary, share awards, share options incentives, pension value and perks.
Chief financial officer Greg Blunden was the next highest paid. He made $2.5 million in compensation, $265,231 more than 2020, or an 11 per cent increase.
Compensation paid to Bruce Marchand, chief legal and compliance officer, was virtually unchanged at $2 million.
Former Nova Scotia Power president Karen Hutt saw the biggest boost. Emera's executive vice-president of business development and strategy earned $1.65 million, $289,706 more than 2020, or a 21 per cent increase.
Rick Janega, the chief operating officer, electrical utilities Canada & Caribbean, was the outlier.
His compensation fell $689,073 — or 28 per cent — to $1.63 million. Janega successfully guided the Maritime Link to completion.
Committee oversees compensation
Executive compensation is overseen by a management resources and compensation committee. It is made up of four independent Emera board members and chaired by Henry Demone, the former CEO of High Liner Foods.
In its management information circular, Emera said executive compensation "has been largely aligned" with total shareholder returns in recent years.
"The analysis concluded that Emera's compensation framework provided appropriate alignment between the President and CEO's compensation and the shareholder experience over the long term," Emera states.
Emera shareholder returns increased by 22 per cent from 2020 to 2021.
"In the face of the demands and impacts of a global COVID-19 pandemic, 2021 was a year of strong performance, both financially and operationally for Emera, including the achievement of important regulatory outcomes,' Emera states.
"Under Mr. Balfour's leadership, Emera has advanced its carbon reduction goals and is increasingly recognized as a leader in ESG (environmental, social and governance)."
What would you do with Emera CEO Scott Balfour’s $8.28 million compensation package?
Emera president Scott Balfour received $8.28 million in compensation in 2021
Emera Inc. president and CEO Scott Balfour took home a whopping $8.28 million dollars in total compensation in 2021, including salary and stock options.
Enough to make you gag in your green beer, the figures for Emera’s top five executives were reported on St.Patrick’s Day in the company’s Management Circular.
Here a short summary of Pay Day for Emera’s Top People:
Scott Balfour, president and CEO, $8.28 million. (6% raise from 2020)
Greg Blunden, Chief Financial Officer, $2.5 million
Bruce Marchand, Chief Legal Counsel, $2.02 million
Karen Hutt, Executive Vice-President, business development and climate strategy, $ 1.64 million
(Hutt made less than $200,000 a year during her three years as president of Nova Scotia Power. Nova Scotia Power executive compensation paid by ratepayers — not to be confused with shareholders — is linked to the top salary paid to a Nova Scotia government deputy minister)
Rick Janega, CEO, Electric Utilities in Canada and Caribbean, $1.63 million
(Janega was responsible for completing the Maritime Link on time and on budget. The Link delivers Muskrat Falls hydro by cable from Newfoundland to Cape Breton.)
The people who served on Emera Inc’s board of directors earned between $250,000 and $300,00 in compensation last year. Chair Jackie Sheppard took home more than $400,00. The company’s annual general meeting will take place in Halifax May 26 and shareholders get to “have a say on pay” if they file all the necessary paperwork.
Although the multinational company that owns Nova Scotia Power and electric and natural gas utilities in Florida, New Mexico, and the Caribbean did not meet its EPS or “Earnings Per Share” objective, every Emera shareholder still saw a 4% increase on last year’s dividend and a TSR (Total Shareholder Return) of 22% on their investment. Not bad, huh? Meanwhile, Nova Scotia Power has a applied for a 10% rate hike over the next three years that will affect all electricity consumers in this province.
Fast facts from the Emera management circular:
• Emera has more than $34 billion in assets.
• Emera states it plans an 80% reduction in coal usage by the end of next year, 2023, and the retirement of Nova Scotia Power’s last coal unit “no later than 2040.”
• Emera says in 2021, the company achieved a 40% reduction in carbon dioxide emissions compared to 2005 levels. This figure includes other companies as well as Nova Scotia Power. “With $5.3 billion committed to clean energy projects, Emera expects to reach its goal of 55% carbon reduction by 2025,” states the filing to SEDAR.
Nova Scotia ratepayers will pay $169.4 million this year for the Maritime Link, despite lack of significant energy deliveries
Nova Scotia ratepayers will continue to be charged almost the full cost of the Maritime Link this year, despite the fact deliveries of hydroelectricity from Muskrat Falls are still only a fraction of what was contracted in 2013.
The $1.76 billion subsea cable built by Nova Scotia Power Maritime Link (NSPML) has been in service since 2018 to bring renewable hydroelectricity from Labrador to Cape Breton.
The 94-page decision issued by the Utility and Review Board (UARB) yesterday acknowledges that after four years of delay, consumers are still receiving only a portion of the NS Block (19% from August 15- November 30, 2021) and that consumers have paid $205.5 million to buy other sources of replacement energy over the past four years.
Officials with NSPML have been unable to provide a firm date when all the energy will arrive because of ongoing delays with the software that controls the transmission of electricity from the dams to mainland Newfoundland via the Labrador Island Link.
That uncertainty appears to be one factor in the UARB’s decision to “hold back” $2 million each month from what Nova Scotia Power can bill ratepayers until most of that electricity is received. (That’s a significant amount, equal to 10% of what the provincial grid consumes today.)
“The Board has determined it is appropriate to continue a form of holdback to provide some continued protection to ratepayers,”explained the UARB in its written decision. “The holdback monies will be used to pay for the cost of any replacement energy that may be required as a result of the failure to achieve the 90%, to a maximum of $2 million per month. Any portion of the $2 million not utilized to pay for replacement cost energy would be paid over to NSPML.”
The “holdback” starts this April and will be reviewed by the UARB next January.
In two previous years, the board refused to allow Nova Scotia Power to collect $10 million from ratepayers because no energy had started to flow. The board appeared skeptical about information from Nova Scotia Power filed after the hearing concluded that claimed deliveries from Muskrat Falls had improved to 70-90% during late December and the first week of January.
“[T]his covers a time period measured in days — not cause for unbridled optimism,” noted the UARB decision. “That evidence was not subject to cross-examination nor submitted under oath and is entitled to little weight. The Board has noted in the past that NSPML and Nova Scotia Power have over-promised and under-delivered when they describe benefits from the Maritime Link. In the 2017 interim assessment hearing, when NSPML was arguing that the Maritime Link was used and useful even in the absence of NS Block, NSPML and Nova Scotia Power stated that energy and other benefits in excess of $120 million in 2018 and 2019 were expected. In fact, those benefits were less than $5 million per year in each of those years.”
Executive Compensation
In an era where huge cost overruns and delays on energy megaprojects are the norm, the UARB praised NSPML for completing the subsea cable on time and on budget, calling it “ a commendable achievement.” And an audit commissioned by the UARB determined that the costs related to how the project was financed and managed were “prudent.”
That said, the UARB refused to allow Nova Scotia Power to stick ratepayers with $13 million for bonuses and incentives paid to retain senior managers between 2013-2018. Intervenors noted that shareholders, not ratepayers, cover the salaries of senior managers with Nova Scotia Power and questioned why the same standard established under the Public Utilities Act shouldn’t apply to bosses with the Maritime Link.
Unfortunately, Nova Scotia Power Maritime Link is not covered by the Public Utilities Act and was created primarily to meet eligibility requirements to get a federal loan guarantee. It’s a technicality. Consumer Advocate Bill Mahody argued ratepayers should not be on the hook for $13 million in executive compensation.
“Ratepayers have paid $650 million in annual assessment and replacement energy costs and received quantified benefits of $17.4 million and 54,000 MWh of power. Such performance does not warrant the consideration of ratepayer funded incentives and donations,” argued Mahody, supported by the Small Business Advocate, and lawyer Nancy Rubin representing large companies such as Michelin Tire and others.
In the end, the UARB simply went back to its previous practice before changes to the Public Utilities Act and gave NSPML half of what it asked for. Ratepayers and Nova Scotia Power will split the $13 million 50-50. NSPML must also cover $700,000 for paying parent company Emera above market rates to rent office space on Upper Water Street and Emera Place.
As for the corporate donations the Maritime Link Project made to various First Nations and communities in Cape Breton, where a sub-station and overhead transmission lines were built, the regulator said those costs can be passed on to ratepayers because building community trust is important when a megaproject is thrust in someone’s backyard.
The UARB agreed that was a “reasonable” approach but then chose to disallow or make Nova Scotia Power pay for about $300,000 of the $1.4 million total in corporate donations.
“[T]he Board considers that some of the contributions and donations made by NSPML fall outside the scope of engagement with Indigenous or local communities, or securing a well-trained and diversified workforce, and appear only remotely connected, if at all, to the communities where construction of the Maritime Link took place,” reads the decision.
Readers will be thrilled to learn Nova Scotia ratepayers will not have to pay for contributions to Jr Achievement Newfoundland, the St John’s Board of Trade Association, and a women’s film festival in St-John’s. Irony intended. Sometimes the small costs are almost as irritating as the big ones. The big one is the $169.4 million that will be rolled into 2022 power rates as approved by the UARB to pay down the cost of the Maritime Link.
Burn Baby Burn
A group composed of municipal utilities around the province (including Berwick, Mahone Bay, and Antigonish) reminded the UARB that Nova Scotia Power had committed to retire its Lingan 2 coal-fired generating station in Cape Breton once hydroelectricity from Labrador was received. Now that that energy has started to flow and a lot more is expected later this year, the municipal utilities group says it’s time that coal-fired unit is shutdown. The UARB agreed.
“The Board advises Nova Scotia Power that it will not permit recovery of operating costs of Lingan 2 beyond August 15, 2022,” reads the decision. “In other words, if Nova Scotia Power proposes to operate Lingan 2 beyond August 15,2022, it will need to seek specific approval.”
NSPML told the regulator it expects to receive another large amount of hydro from Muskrat Falls — that the province is counting on to replace an additional10% of coal-fired power with renewables — starting this September. That market-priced energy is another important component of the original deal the UARB approved back in 2013 because it was the combination of the market-priced energy plus the NS Block that determined the Maritime Link was the lowest cost alternative for ratepayers.
So far, that has bargain has yet to be kept but the regulator appears confident it will be.
“While there continue to be delivery delays of the NS Block, NS ratepayers will benefit from NSPML’s development of the Maritime Link Project, including its continuing efforts with Nalcor as they both strive to secure an important source of renewable energy for Nova Scotians and our neighbors in Newfoundland and Labrador,” reads the decision.
In the meantime, the UARB is ordering NSPML and Nova Scotia Power to keep filing quarterly reports on the status of Muskrat Falls and the Labrador Island Link commissioning process. It must also file quarterly reports that are to identify costs “associated with replacement cost of undelivered energy and costs associated with extended operation of Lingan 2 and any other thermal resource that was intended to be displaced by Muskrat Falls deliveries.” Hopefully, that will provide more timely and transparent information for both the regulator and the public stuck paying the bill.
Emera finds new Nova Scotia Power president in Ontario
New president and CEO will start in November
An Ontario electricity industry veteran will become the new president and CEO of Nova Scotia Power.
Parent company Emera announced the appointment of Peter Gregg in a press release Wednesday.
Gregg is currently the president of the Independent Electricity System Operator (IESO) in Ontario, which manages the operation of the bulk electricity system in Ontario.
"I was attracted to this exciting opportunity because NSPI is recognized as an innovative and customer-centric utility with an impressive track record and plan for the continued transition to cleaner energy," Gregg said in a statement.
Gregg takes over from Emera chief operating officer Rick Janega, who has been interim CEO since June.
Latest change at Nova Scotia Power
Emera's news release said Gregg was selected after a rigorous search within Canada that attracted a long list of candidates from inside and outside the company.
Prior to his role at the IESO, Gregg served as the president and CEO of Enersource and chief operating officer at Hydro One Networks, where he was heavily focused on energy distribution in Ontario.
He starts at Nova Scotia Power in November.
Gregg is the latest change at the top of Nova Scotia's power utility, which serves more than 400,000 residential customers.
Last October, Emera announced Nova Scotia Power president Karen Hutt was being appointed executive vice-president of strategy and business development at Emera and would be replaced by Wayne O'Connor as the new CEO.
O'Connor left the company this spring, leading to Janega's appointment in an acting role.
In 2017, Hutt, then the president and CEO, earned $694,568 in compensation. Ratepayers picked up $234,289 of that compensation.
CBC's Journalistic Standards and Practices
BRIAN GIFFORD: Three ways to limit impact of power hikes on low-income Nova Scotians
BRIAN GIFFORD • Guest Opinion
Brian Gifford lives in Halifax. He is chair of the Affordable Energy Coalition.
Nova Scotia Power’s application for large rate increases raises many controversial questions. Premier Tim Houston has said the Nova Scotia government is “exploring all options; nothing is off the table.”
The Affordable Energy Coalition believes that while considering the proposed rate increase, we must be laser-focused on practical solutions that will work for the people who will be most badly affected by whatever the rate turns out to be. Households in energy poverty already face high energy costs, sometimes having to choose between eating, heating, and lighting their homes. In addition to setting goals on climate change, the new Environmental Goals Act passed in the fall also promised equity. We must ensure low- and modest-income and marginalized households are not left behind as we decarbonize our economy. We can and must address the climate emergency and reduce energy poverty at the same time. Now is the time to take steps needed to make this possible.
There are three practical solutions we strongly encourage the Nova Scotia government to act on and other Nova Scotians to vigorously support.
Solution 1: Create a Universal Service Program, as many U.S. jurisdictions and Ontario have done. Such programs make sure people don’t lose access to energy services due to their low income. Energy is essential to modern life — heating, lights and food preparation. The best of these programs cap energy costs at six per cent of income for low-income households. The Ontario program instead provides standardized monthly subsidies based on income and family size. A Universal Service Program is a well-proven way to make sure low-income households can keep the lights on while longer-term solutions are implemented.
Substantial energy efficiency upgrades to low-income homes are the longer-term solution. The second and third practical solutions we can act on now will boost our efforts at installing efficiency upgrades to lower bills for low-income households.
Solution 2: A new three-year contract for efficiency services provided by Efficiency Nova Scotia to NSP in 2023-2025 is being negotiated now. We must support a new contract that includes substantially expanded low-income program funding.
Solution 3: The Nova Scotia government and others can support a national campaign led by Efficiency Canada for $2 billion in low-income efficiency funding in the next federal budget to boost existing efforts across the country, including here in Nova Scotia.
This would provide the same amount of federal funding for low-income efficiency programs as the money that they have already committed in the Greener Homes program to help higher-income households pay for efficiency upgrades. Successful energy efficiency programs for low-income households cover 100 per cent of the costs of upgrades, and organize the work so it is done effectively and in a timely manner — this is what Nova Scotia’s HomeWarming program does.
Energy poverty occurs when low- and modest-income households spend over six per cent of income on energy. Nova Scotia has one of the highest rates of energy poverty in the country due to high oil prices and power rates and low incomes. The province has made real strides in reducing energy bills with programs that have created permanent, substantial annual savings for over 18,000 low-income households. The HomeWarming program and its predecessors have installed major efficiency upgrades such as insulation and air sealing in homes owned by low-income households. Other programs offered by Efficiency Nova Scotia help Mi’kmaw communities, shelters and landlords with low-income tenants to secure similar savings.
On average, efficiency upgrades in the HomeWarming program save low-income homeowners about 30 per cent on home energy bills — each household saves over $500 per year in energy costs for electrically-heated homes or $900/year for oil-heated homes. They also benefit from warmer, more comfortable homes while reducing greenhouse gas emissions.
We must increase the depth and speed of existing provincial programs so all low- and modest-income Nova Scotians can benefit from lower energy costs. What Nova Scotians pay for energy is not only in their electricity bills. Oil heating is far more expensive and creates more greenhouse gases than highly efficient electric heat pumps. HomeWarming should aim for at least 50 per cent savings instead of 30 per cent — through a combination of insulation and switching to heat pumps or zero-emissions heating.
We must also expand who qualifies for efficiency upgrades. Many modest-income households also suffer from energy poverty. They struggle with energy costs and can’t afford efficiency upgrades. In African Nova Scotian communities, many households aren’t eligible for HomeWarming due to unclear property title due to past racist practices. Modest-income households facing energy poverty and African Nova Scotians with unclear property title must be included in low-income efficiency programs.
Energy efficiency programs for low- and modest-income households and marginalized communities are an essential part of the transition to a low-carbon economy. These programs also reduce longstanding energy poverty. A Universal Service Program will reduce energy poverty in the meantime. We know what works. Now we need to build on our successes and scale up existing programs to make the transition to zero-carbon homes as fast and inclusive as it needs to be.
We call on Nova Scotians and the provincial government to support these practical solutions. We also call on the federal government to recognize the double benefits of supporting low-income energy efficiency programs across the country and here in Nova Scotia by committing $2 billion in funding for low-income energy efficiency in the upcoming federal budget.
To support federal funding for low-income efficiency see Efficiency Canada: https://www.efficiencycanada.org/low-income-energy-efficiency-2022#supporter
To access existing Nova Scotia programs: Homewarming: https://www.homewarming.ca/
Efficiency Nova Scotia’s Affordable Multi-family Housing Program: https://www.efficiencyns.ca/business/business-types/affordable-housing/
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Nova Scotia Power applies for rate increase of 10% over next three years
HALIFAX, N.S. — Residential power users are facing a 10 per cent increase in rates in three steps from 2022 to 2024 in Nova Scotia Power's general rate application put forward to the Utility and Review Board on Thursday.
NSP officials held a technical briefing as well as a media session with president and CEO Peter Gregg just before filing the application.
The power utility is seeking base rate increases of 3.3 per cent for each of the next three years for residential customers. Industrial and business users are also facing increases, with the average rate for large businesses going up 5.2 per cent in 2022, 5.2 per cent in 2023 and 5.3 per cent in 2024. For small businesses, those steps are proposed to be 3.7, 3.7 and 3.8.
Gregg said NSP supports the requirement to phase out reliance on coal-fired generation and meet government goals of 80 per cent renewable energy by 2030.
“But it does represent a significant change in our operating landscape. And climate change means that our weather is changing as well. We're seeing more frequent and intense storm events with increased wind speeds, which affect reliability, and that's especially top-of-mind for us.
“The rate increases for the next three years will support the changes we need to make to enable us to meet government commitments and environmental goals and ensure that we can meet our customers' growing demand for electricity.”
While rates have gone up due to fuel cost recovery, NSP has not submitted a rate application like this since 2012, NSP staffers said during the technical briefing.
The application includes five aspects:
- The creation of a Decarbonization Deferral Account, or DDA, which would be used to park funds in preparation to offset costs related to the closure of NSP's coal-fueled power plants by 2030. NSP is choosing to create this fund, which is anticipated to hold about $370 million, to avoid immediately passing those costs on to customers.
- The creation of a Storm Recovery rider, which would come into effect only if a massive storm affects infrastructure and service along the lines of hurricane Dorian. NSP already has storm effects built into rates but this would be applied only in the case of extraordinary storms and would be capped at 2 per cent. It would also not be applied until a year after the event and NSP staff said the earliest that could happen under the proposed application would be in 2024.
- A system access fee related to Net Metering, which will apply to customers who generate the own power and sell it back to the utility. Any customers who already have their systems in place before Feb. 1 will be exempt from the fee for 25 years from the date they were first connected to the system. Gregg said because Net Metering customers enjoy a subsidy now, customers who don't have those systems would be unfairly paying for those who do to enjoy that benefit. The fee is proposed to be $8 per kilowatt of installed capacity per month.
- Demand Side Management (DSM) relates to the costs related to energy conservation and efficiency programs, which are administered in Nova Scotia by Efficiency One. The DSM rider will provide clarity on costs to customer for these programs. Staff said these are not NSP's costs, but instead are from Efficiency One.
- Ability to Invest covers the need for NSP to have capital. The Return on Equity requirements, to remain at 9 per cent, will include a margin of plus or minus 0.50 per cent and an equity ratio, currently set at 37.5 per cent, to step up in phases to 45 per cent by the end of 2024.
Depending how long the URB takes to consider the application, the new rates for 2022 could come into effect on Aug. 1, 2022. The other steps are proposed to come into effect on Jan. 1, 2023, and Jan. 1, 2024.
“I want our customers to know that we don't take decisions about raising rates lightly,” Gregg said. “We understand the impact that rate increases can have on our customers and it's been a huge consideration as we've contemplated filing this application.
“We recognize that every dollar that we invest in our operations comes at a cost to our customers. That means that we always need to balance affordability with the investments needed to ensure reliable power is provided to our customers across Nova Scotia.”
Gregg said it's important to continue to invest in the system to meet the commitment to provide safe and reliable electricity to all of NSP's customers.
The creation of the DDA is to meet commitments to a greener system but avoid putting all of the accelerated costs on the shoulders of customers all at once, he said.
“We think this is a prudent and effective way of doing it,” he said.
As for the system access fee for customers who will be generating their own electricity, Gregg said it's an issue of fairness or equity.
“What we want to avoid is customers that don't have access or the ability to generate their own electricity to be covering the cost or subsidizing costs for those who do have the ability to do it. And that is the situation that exists right now.”
Those who generate electricity currently qualify for a subsidy that reduces the amount they pay on their bill but they continue to be connected to the grid and receive some power. As they pay less, it happens that the rest of customers' costs go up, Gregg said.
With the storm rider, Gregg said NSP is not asking for a way out of having responsibility to harden the system against weather. Instead, the storm rider process depends on having four increasing levels of storm events. The first two levels would be accounted for in existing rates. The storm rider would only come into effect if a storm's ferocity reaches into the third and fourth levels.
NSP doesn't want to build contingency costs into rates in advance for the more extreme storms as that would increase every bill.
“What we're saying is if those more extreme weather events do occur, whether Level 3 or Level 4 storms, and there's more cost that comes from that over and above the forecast that become set in rates, then we would have the ability to come back and seek to recover those costs with a two per cent cap annually in place. And so the motivation still exists to manage our costs appropriately.”
When asked why NSP did not choose to ask for a reduction in their built-in profit, Gregg said they are not asking for more than what they need to run a reliable business.
For more information or to arrange interviews, contact Brian Gifford, Affordable Energy Coalition and Nova Scotians for Tax Fairness at (902) 454-1656 (h), (782) 234-4766 (cell) or brian.gifford@eastlink.ca ;
Peter.Gregg@nspower.ca
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