Halifax: Nova Scotia Power and customer representatives announced a proposed settlement September 19 regarding 2012 electricity rates.
If approved, the settlement will result in an average increase of approximately five percent for all customers, effective January 1, 2012. For the average residential customer, the increase would be approximately $6.00 per month. The settlement is a reduction in the average increase of 7.2 percent proposed in NS Power’s original rate filing of last May. General electricity rates in Nova Scotia last increased on January 1, 2009.
Nova Scotia Power and customer representatives have agreed to defer recovery of any fixed costs resulting from uncertainty in the pulp and paper industry. Those costs would be recovered in 2013 or as part of the next general rate application.
The settlement includes a change to Nova Scotia Power’s regulated rate of return, or Return on Equity (ROE). The company’s ROE will now be 9.2 per cent for rate-making purposes, with an allowed range of 9.1 to 9.5 per cent.
The 2012 settlement proposal will be presented to the Nova Scotia Utility and Review Board (UARB) for consideration. The Board will determine next steps as part of its approval process.