Rates could rise 14% over 2 years under settlement between Nova Scotia Power, customers

Nova Scotia Power and its customers have reached a settlement that would see rates rise by nearly 14 per cent over the next two years.

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.

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.