sdm
May 27, 2008, 7:53 PM
PRESS RELEASE
TSX:NSI.PR.C
TSX:NSI.PR.D
World energy prices forcing higher electricity rates in N.S. next year
Fuel adjustment will be 8.1%; overall increase will be 11.9%
HALIFAX, NS, May 27, 2008 -- Volatile world prices for coal, oil and natural gas have forced Nova Scotia Power to seek an increase in electricity prices effective January 1, 2009. Rates have not changed since April 2007 and will remain frozen through the end of 2008.
The company today filed an application with the Nova Scotia Utility and Review Board (UARB), requesting a fuel adjustment of 8.1% and 3.8% for reliability, customer service improvements and recovery of previously approved costs.
“We know higher rates are not welcome news for our customers but worldwide energy prices are making many of life’s essentials more expensive – from the gasoline we put in our cars to the heating oil we put in our furnaces,” said Ralph Tedesco, President and Chief Executive Officer of Nova Scotia Power. “Our strategy for buying fuel has helped shield customers and allowed Nova Scotia Power to hold prices steady through the end of this year. However, as we’ve recently seen with other businesses, higher costs for fuel are putting upward pressure on our prices.”
The cost of fuel used to produce electricity in Nova Scotia will be $90 million higher in 2009. Since electricity rates were last set in Nova Scotia, the price of fossil fuels has shot up. The price of coal has doubled, from about $60 to about $130 per tonne. The price of oil has increased from about $60 to about $130 a barrel. Natural gas is up from less than $8 to about $12 per mmBTU.
The average overall increase for Nova Scotia Power customers will be 11.9%, effective January 1, 2009. The increase for residential customers will be 12.1%. The application filed today also includes revenues for:
investments to enhance reliability and customer service, including tree trimming;
energy efficiency and conservation programs; and
other expenses previously approved by the Utility and Review Board.
“As part of our cleaner, greener strategy, Nova Scotia Power is substantially increasing sources of renewable generation and assisting customers with conservation and energy efficiency,” said Mr. Tedesco. The company has signed fixed-price contracts to increase wind generation by five times – enough to serve 80,000 homes - and is launching energy efficiency and conservation initiatives for low-income and other customers.
“Over the long term, the addition of renewable energy will help stabilize prices for customers,” Mr. Tedesco added. “In the near term, Nova Scotia depends on fossil fuels to make most of its electricity.”
The average price for electricity in Nova Scotia has increased 23 per cent since 1996. Over the same period, the prices that Nova Scotians pay for home heating oil, propane and gasoline have increased by 140 to 170 per cent.
Mr. Tedesco said the company’s outlook is to earn within its regulated rate of return this year, adding the impact of higher fuel costs will moderate Nova Scotia Power’s financial results during the second half of 2008. The same international forces influencing fuel costs mean the company must file a plan with the Utility and Review Board for recovering higher fuel costs in 2009.
About Nova Scotia Power
Nova Scotia Power Inc. is the largest wholly-owned subsidiary of Emera Inc. (TSX-EMA), a diversified energy and services company. Nova Scotia Power provides more than 95% of the generation, transmission and distribution of electrical power to 478,000 customers in the province. The company is focused on new technologies to enhance customer service and reliability, reduce emissions and add renewable energy. Nova Scotia Power has 1,700 employees and $3 billion in assets.
For more information, contact:
Margaret Murphy
Nova Scotia Power Inc.
Office - (902) 428-6436
Cellular - (902) 233-6015
margaret.murphy@nspower.ca
Confidentiality Notice - The email communication is considered confidential
and is intended only for the recipient(s). If you received this email in error,
please contact the sender and delete the email. Unauthorized disclosure or
copying of this email is prohibited.
Attachment Limits - Emera will not accept email larger than 10MB or emails
containing high risk attachments like ZIP, EXE or others that could contain viruses.
If you have a business need to send such an email, please contact the recipient for instructions.
TSX:NSI.PR.C
TSX:NSI.PR.D
World energy prices forcing higher electricity rates in N.S. next year
Fuel adjustment will be 8.1%; overall increase will be 11.9%
HALIFAX, NS, May 27, 2008 -- Volatile world prices for coal, oil and natural gas have forced Nova Scotia Power to seek an increase in electricity prices effective January 1, 2009. Rates have not changed since April 2007 and will remain frozen through the end of 2008.
The company today filed an application with the Nova Scotia Utility and Review Board (UARB), requesting a fuel adjustment of 8.1% and 3.8% for reliability, customer service improvements and recovery of previously approved costs.
“We know higher rates are not welcome news for our customers but worldwide energy prices are making many of life’s essentials more expensive – from the gasoline we put in our cars to the heating oil we put in our furnaces,” said Ralph Tedesco, President and Chief Executive Officer of Nova Scotia Power. “Our strategy for buying fuel has helped shield customers and allowed Nova Scotia Power to hold prices steady through the end of this year. However, as we’ve recently seen with other businesses, higher costs for fuel are putting upward pressure on our prices.”
The cost of fuel used to produce electricity in Nova Scotia will be $90 million higher in 2009. Since electricity rates were last set in Nova Scotia, the price of fossil fuels has shot up. The price of coal has doubled, from about $60 to about $130 per tonne. The price of oil has increased from about $60 to about $130 a barrel. Natural gas is up from less than $8 to about $12 per mmBTU.
The average overall increase for Nova Scotia Power customers will be 11.9%, effective January 1, 2009. The increase for residential customers will be 12.1%. The application filed today also includes revenues for:
investments to enhance reliability and customer service, including tree trimming;
energy efficiency and conservation programs; and
other expenses previously approved by the Utility and Review Board.
“As part of our cleaner, greener strategy, Nova Scotia Power is substantially increasing sources of renewable generation and assisting customers with conservation and energy efficiency,” said Mr. Tedesco. The company has signed fixed-price contracts to increase wind generation by five times – enough to serve 80,000 homes - and is launching energy efficiency and conservation initiatives for low-income and other customers.
“Over the long term, the addition of renewable energy will help stabilize prices for customers,” Mr. Tedesco added. “In the near term, Nova Scotia depends on fossil fuels to make most of its electricity.”
The average price for electricity in Nova Scotia has increased 23 per cent since 1996. Over the same period, the prices that Nova Scotians pay for home heating oil, propane and gasoline have increased by 140 to 170 per cent.
Mr. Tedesco said the company’s outlook is to earn within its regulated rate of return this year, adding the impact of higher fuel costs will moderate Nova Scotia Power’s financial results during the second half of 2008. The same international forces influencing fuel costs mean the company must file a plan with the Utility and Review Board for recovering higher fuel costs in 2009.
About Nova Scotia Power
Nova Scotia Power Inc. is the largest wholly-owned subsidiary of Emera Inc. (TSX-EMA), a diversified energy and services company. Nova Scotia Power provides more than 95% of the generation, transmission and distribution of electrical power to 478,000 customers in the province. The company is focused on new technologies to enhance customer service and reliability, reduce emissions and add renewable energy. Nova Scotia Power has 1,700 employees and $3 billion in assets.
For more information, contact:
Margaret Murphy
Nova Scotia Power Inc.
Office - (902) 428-6436
Cellular - (902) 233-6015
margaret.murphy@nspower.ca
Confidentiality Notice - The email communication is considered confidential
and is intended only for the recipient(s). If you received this email in error,
please contact the sender and delete the email. Unauthorized disclosure or
copying of this email is prohibited.
Attachment Limits - Emera will not accept email larger than 10MB or emails
containing high risk attachments like ZIP, EXE or others that could contain viruses.
If you have a business need to send such an email, please contact the recipient for instructions.