Nova Scotia Power applies to lower power rates

For the first time in anyone's memory the Nova Scotia Power Corporation has applied to lower the power rates in the province.

Nova Scotia Power has applied to the Nova Scotia Utility and Review Board to approve a reduction in the rate Nova Scotians will pay for energy next year, the energy company said in a press release. The decrease comes due to the implementation of the fuel adjustment mechanism, which reduces the volatility in Nova Scotia Power’s fuel expenses. If the government regulator approves the application, Nova Scotians can expect a rate decrease of 1.4 per cent beginning January 1, 2010. The decrease would mean a savings of approximately $2.50 per month for the average residential customer who uses electricity for heat and hot water, and $1.25 per month for the average residential customer with non-electric heat and hot water. It is good news for Nova Scotians who have endured 5 rate increases over the past 8 years. Alan Richardson, NS Power’s Vice President, Integrated Customer Services said in the release, “We work hard to manage fuel costs on behalf of our customers. We have a fuel portfolio strategy that incorporates a mix of fuels with short-term, mid-term and long-term contracts, much like a balanced portfolio of RRSP investments. Our regulator has approved this approach and it is serving our customers well.” The total rebate to customers is expected to be about $22 million. If approved, the rate adjustment would remain in place for a period of one year and then be replaced by the next Fuel Adjustment Mechanism (FAM) that would depend upon an application based upon fuel prices in 2010.