Houston says he'll intervene in future power rate increase applications if necessary

Premier Tim Houston says legislation his government is using to limit rate increases for Nova Scotia Power could be used again in the future if he decides it is required.

"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.

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.

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."