NSP green program will cost residential users, not mills
Published: 2009-04-15
Residential customers of Nova Scotia Power will be paying the bulk of the $23-million price tag for programs to cut electricity consumption next year, according to evidence filed with provincial regulators.
Meanwhile, NSP’s two biggest customers — NewPage Port Hawkesbury and Bowater Mersey Paper Co. Ltd. — will pay only $4 total.
NSP argues that its 440,000 residential customers will benefit the most from the energy efficiency programs.
Residential customers are being asked to pay $7.7 million, or almost 34 per cent, of the $23 million through a surcharge which will be added to their power bills, states the utility in evidence filed with the Nova Scotia Utility and Review Board.
Also, retailers in the province such as Wal-Mart are being asked to pay $7.2 million for the programs, or 31.7 per cent of the cost.
The utility is seeking to get these costs back through a surcharge on customers’ bills, but the exact amount has yet to be determined.
The giant pulp and paper companies won’t pay as much for the energy conservation programs because their mills are already energy efficient, Alan Richardson, NSP’s vice-president of commercial operations, said Tuesday.
"There’s no programs for them. We don’t have any programs that they will be using," said Mr. Richardson. "The issue with them is they have huge motors and loads and they’re new. There’s just not a lot you can do."
However, the Affordable Energy Coalition in Halifax says all NSP customers benefit when less electricity is used.
"Not just through direct program services. In the long run . . . we avoid costs of new power plants. Reducing consumption really does help everyone, including the large industrials. Everybody should be contributing to those programs (and) supporting them financially," said Claire MacNeil, a lawyer for the group that represents low-income Nova Scotians.
The Ecology Action Centre has argued that successful programs to reduce energy usage would avoid having to build a $1-billion coal-fired power plant.
Last week, NSP filed its application with the UARB to spend $23 million promoting better use of electricity. A hearing into the application will be held June 3 in Halifax.
NSP’s customers will be footing the bill for the programs, but an independent administrator still has to be appointed by the provincial government to oversee the electricity conservation initiative. The independent administrator is expected to be appointed by June.
The proposed plan expands on programs offered since 2008 and includes the promotion of energy efficient appliances and lighting, electrical conservation retrofits for new and existing homes, energy audits and upgrades for low-income households, and customized projects for small business and industry.
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