Decision on biomass project may come by Friday

By JUDY MYRDEN Business Reporter
Thu, Oct 28 - 4:53 AM

An announcement is expected as early as Friday on the controversial $208-million project to generate electricity by burning wood proposed by NewPage Port Hawkesbury and Nova Scotia Power, a source has told The Chronicle Herald.

After getting the government go-ahead Oct. 14 to build the biomass-burning project outside Port Hawkesbury, the power company has yet to make a definitive decision on the plant.

Instead, it has been reviewing the regulator’s decision, which stipulated any cost overruns must be borne by the utility’s shareholders, not its customers.

"There hasn’t been much said. Were the conditions so onerous that it scared them off? I don’t know, from the point of view of Nova Scotia Power, perhaps they just don’t like that much risk," said Wade Prest, a small woodlot owner and director of the Nova Scotia Woodlot Owner and Operators Association, on Wednesday.

A Nova Scotia Power vice-president has said the utility has yet to make a decision on the project and is examining the conditions.

"There’s a process we have to go through to carefully consider the conditions and we are doing that," said Robin McAdam on Oct. 15.

Nova Scotia Power wasn’t supportive of the idea of sharing any risks of the project with its shareholders during a hearing into the development last month.

McAdam told regulators that sharing the risk with shareholders would be "proposing a different kind of regulatory construct than exists today in Nova Scotia."

Neither McAdam nor Bill Stewart, NewPage Port Hawkesbury’s lead manager on the project, were available for interviews Wednesday.

NewPage Port Hawkesbury, a subsidiary of Ohio-based NewPage Corp., is a partner with Nova Scotia Power in the plan to build the power-generating plant. The utility intends to spend about $200 million, including $80 million to buy NewPage’s boiler and $93 million in construction costs.

NewPage has previously said the $80 million from the boiler’s sale will enhance its liquidity. The company has reported having $7 million in cash and $113 million available on a line of credit, but it also has a $3.4 billion debt.

Next week, both NewPage and Emera, parent company of Nova Scotia Power, release third-quarter financial results.

In its 50-page decision, the Nova Scotia Utility and Review Board ordered the utility be on the hook if a penalty clause kicks in for a late start to the project.

The deal between the two companies stated that if Nova Scotia Power gives notice to proceed after Sept. 30, 2010, the contract price will escalate by 0.2 per cent per month.

The board also stated the most important part of the project is a contract worth $92.9 million covering engineering, procurement and construction costs. Any additional costs cannot be passed along to power customers on their bills.

Also, if there are capital cost overruns, the power company must come back before the board for another public hearing.

The utility says it needs the biomass project to proceed in order to meet the province’s renewable energy target of generating 10 per cent of its electricity from wind, tides or biomass by 2013.

http://www.thechronicleherald.ca/Business/1209022.html

Change is in the wind

Turbine demand drops in EU, rises in Canada
By KRISTINE OWRAM The Canadian Press
Wed, Oct 27 - 4:53 AM

TORONTO — Call it a tale of two continents: the world’s biggest maker of wind turbines announced that it will lay off nearly a third of its workforce because of a weak outlook for the European wind energy market in 2011, while Canada is expecting a year of record growth.

Denmark-based Vestas A/S on Tuesday posted a 24 per cent drop in third-quarter earnings and said it will lay off some 3,000 workers in Denmark and Sweden to adjust to lower demand in Europe.

The company said it shipped a total of 719 wind turbines in the quarter, or 27 per cent less than a year earlier, and CEO Ditlev Engel said growth in the European market next year will be below earlier expectations.

"When we look into 2011 we see a lot of uncertainty in a number of European markets which, for instance, the Danish factories have been servicing," Engel said in an interview posted on the company’s website Tuesday. "So you could say we have maybe been too optimistic for too long."

But the weaker outlook for European demand is having no impact on optimism on the other side of the Atlantic.

Robert Hornung, president of the Canadian Wind Energy Association, said over 1,000 megawatts of new wind energy capacity is expected to be installed in Canada next year — exceeding the record 950 megawatts of capacity that was installed in 2009. One megawatt is equal to one million watts.

"We are quite confident that we’re entering a period of sustained strong growth for the industry in Canada, and we think that’s going to provide some significant benefits, both environmental but also economically, to the country," Hornung said in an interview.

Contracts have already been signed for 6,000 megawatts of new capacity to be installed over the next five years, and Hornung said he expects that number will increase to 8,000.

Canada currently has 3,499 megawatts of installed wind energy capacity, and the wind energy association expects that to increase to 4,073 megawatts by the end of the year — enough energy to power more than 1.4 million homes annually.

Every province in the country generates some wind power, and there are commitments to build new capacity in every province except Newfoundland and Labrador over the next few years, Hornung said.

The biggest areas of expansion will be Quebec, with contracts in place for 3,000 new megawatts of capacity by 2015; Ontario, with contracts for 1,500 megawatts; and British Columbia, with contracts for 800 megawatts.

Currently, only about 1.5 per cent of Canada’s total energy demand is met by wind power, but Hornung said this is expected to increase to five per cent by 2015.

This demand is primarily being driven by government policy. Many provinces are working to reduce their reliance on polluting sources of energy like coal and are encouraging increased use of clean energy sources like wind. The development of wind farms is also helping to boost the economy of some regions.

Quebec, for example, is developing wind farms on the Gaspe Peninsula, an area that has been hard hit by declines in the fishery and forestry industries, Hornung said.

http://www.thechronicleherald.ca/Business/1208928.html

Williams edges closer to decision on N.L.-N.S, undersea cable

By ROGER TAYLOR Business Columnist
Tue, Oct 26 - 4:53 AM

Newfoundland and Labrador Premier Danny Williams seems to be the only one willing to talk openly about the possibility of Lower Churchill hydro electricity from Labrador landing in Nova Scotia via undersea cable.

Williams told the annual convention of his Progressive Conservative party on the weekend that the provincially owned Nalcor Energy was in talks with Emera about developing Lower Churchill in two phases — Muskrat Falls first, then the larger Gull Island phase.

Williams says the Muskrat Falls portion alone would be enough to eliminate the need to build a new generating station on the island of Newfoundland, with any excess power being sold to Nova Scotia and New England.

There is nothing new to the idea that negotiations are taking place between Nalcor and Emera. In January 2008, the two energy companies signed a memorandum of understanding to carry Lower Churchill electricity to Nova Scotia and the U.S. market.

The energy trading arm of Emera already sells a small amount of power from the original Upper Churchill hydro project on behalf of Newfoundland and Labrador.

But this time, Williams says he’s ready to announce a decision on the Nova Scotia option "sooner rather than later."

An Emera representative was reported to have indicated only that talks with Nalcor and NB Power are ongoing. Nalcor didn’t respond when contacted Monday. In an email, Murray Coolican, Nova Scotia’s deputy minister of energy, declined to comment on the status of discussions.

The fact that the federal government is expected to make some decisions on funding so-called gateway energy projects may be bringing this issue to a head. Williams confirmed on the weekend that the federal government will be asked to provide loan guarantees to assist in getting the project built.

It had been reported earlier that both Newfoundland and Labrador and Nova Scotia already asked Ottawa for $375 million from a federal fund for public-private projects.

One of the reasons the Nova Scotia option is on the table is the ongoing dispute the Newfoundland government has with Quebec over how it was treated for the original Churchill Falls power project.

"Imagine how exciting a day it would be if we could see that power avoid Quebec altogether," Williams was reported to have told his supporters during his speech.

If a deal is reached, Lower Churchill power would first have to be brought from Labrador onto the island part of Newfoundland, likely via undersea cable, and then by undersea cable to a landing point in Cape Breton.

The cost of building the cable from Newfoundland to Nova Scotia has been predicted to cost about $2 billion.

Negotiating an arrangement with Nova Scotia and Emera isn’t the least of the problems facing the Lower Churchill project. There is political opposition in Newfoundland by those who doubt whether it is possible to develop only half of the project and make money on it. Others question whether it is wise to bypass Quebec.

An agreement with the Innu of Labrador must also be ratified by the Innu before the Lower Churchill could be developed. There are some influential native leaders who fear building the Lower Churchill project will result in flooded burial grounds and the loss of traditional Innu hunting areas.

And that’s not all. The Quebec government took steps earlier this year to block Newfoundland and Labrador and Nova Scotia from gaining access to federal funds to help with the building of a Maritime transmission route.

Nova Scotia can’t count on Williams signing a deal for a Maritime transmission route just yet, either.

The Newfoundland premier seems to be leaving the door open to Quebec participating in the Lower Churchill if Quebec Hydro would agree to reasonable transmission rates.

On another note, the price of natural gas is calculated based on a per million British thermal unit measurement. The wrong measurement was used in a recent column.

http://www.thechronicleherald.ca/Business/1208814.html

Subsea cable still up in the air

Emera mum on talks to get Churchill power to N.S., U.S.
By The Canadian Press
Tue, Oct 26 - 4:53 AM

Emera Inc. is declining comment on whether a deal is imminent with Newfoundland’s Nalcor Energy on the proposed $6.5-billion Lower Churchill hydroelectric project in Labrador.

Over the weekend, Premier Danny Williams of Newfoundland and Labrador said talks continued between Emera and his province’s Crown-owned agency.

Williams said the project would likely be completed in two phases with the help of Halifax-based Emera and that he planned to make an announcement "sooner rather than later."

Emera spokeswoman Sasha Irving confirmed Monday that talks are ongoing with Newfoundland and Labrador, and New Brunswick on an energy link.

"When we have something that we are able to announce, certainly we will be happy to do that and provide details," said Irving.

Emera’s subsidiary, Nova Scotia Power Inc., has been talking with Nalcor about a subsea cable to carry electricity to Nova Scotia and the U.S. market since a memorandum of understanding was signed in January 2008.

Nova Scotia and Newfoundland and Labrador have also asked Ottawa for $375 million for the project from a federal fund for public-private projects.

Nova Scotia Energy Minister Bill Estabrooks said although he isn’t involved in the negotiations between the two utilities, he recognizes the talks are central to getting all the "moving parts" of the project off the ground.

"They are the key particularly when it comes to finances," said Estabrooks.

Meanwhile, Newfoundland and Labrador’s Liberal Opposition called on Williams on Monday to release details on any deal, saying "secrecy on this file doesn’t cut it."

"Taking just any deal doesn’t mean it’s a good deal," Kelvin Parsons, the Liberal party’s interim leader, said in a news release.

"I hope the premier is not grasping at straws just for the optics of him keeping his promise to cut a deal on this project."

The cost of the cable project hasn’t been revealed, although a study by SNC-Lavalin for the Nova Scotia government estimated the price tag at $800 million to $1.2 billion.

The Newfoundland and Labrador government vowed to seek an alternate route to get Lower Churchill power to the U.S. after losing a four-year battle with Quebec about moving electricity through that province. In May, Quebec’s energy board ruled that Hydro-Quebec was entitled to refuse to negotiate a contract with Nalcor Energy.

‘Taking just any deal doesn’t mean it’s a good deal. I hope the premier is not grasping at straws just for the optics of him keeping his promise to cut a deal on this project’

Interim N.L. Liberal Party leader

KELVIN PARSONS

http://www.thechronicleherald.ca/Business/1208808.html

World's largest wind-turbine maker to lay off 3,000

Firm says cheaper to build a windmill in Spain than in Denmark
By The Canadian Press
Tue, Oct 26 - 5:17 AM

COPENHAGEN, Denmark — Vestas A/S, the world's biggest maker of wind turbines, has posted a 24 per cent drop in third-quarter earnings and says it will lay off some 3,000 workers in Denmark and Sweden to adjust to lower demand in Europe.

Net profit was C126 million, down from C165 million in the same period last year. Sales dropped to C1.7 billion from C1.8 billion.

The company, based in Randers, Denmark, said Tuesday it shipped a total of 719 wind turbines, or 27 per cent less than in the third quarter of 2009.

Vestas CEO Ditlev Engel says it has become cheaper to build a windmill in Spain than in Denmark and that growth in the European market in 2011 will be below earlier expectations.

http://www.thechronicleherald.ca/Business/9018430.html

Why PEI’s wind plan is dying

RICHARD BLACKWELL

CHARLOTTETOWN— From Tuesday's Globe and Mail

Published Monday, Oct. 11, 2010 6:59PM EDT

Last updated Wednesday, Oct. 13, 2010 6:42PM EDT

In October, 2008, Prince Edward Island Premier Robert Ghiz made a bold promise. The province was going to dramatically increase the amount of wind power it produced, boosting production to 30 per cent of its total electricity consumption from the 18 per cent it then generated.

The move would make the province a green powerhouse, and the North American jurisdiction with by far the highest proportion of wind-generated electricity. At the same time, PEI would become an energy exporter – despite having no other homegrown sources of power – by building additional wind projects to sell power into the New England market.

All this was to be accomplished by 2013, when the province would have 500 megawatts of wind turbines churning out power – a substantial amount for a tiny island province. Only Ontario, Quebec and Alberta would have had more.

Mr. Ghiz vowed that the $1-billion worth of wind farm and transmission construction would be the largest project on the island since the building of the Confederation Bridge.

Two years later, the plan is in disarray. While PEI tried to attract private developers to the province, several of their proposals demanded higher power prices than the province was willing to pay. The government and its utility rejected the offers because they would have driven up electricity prices, which are already the highest in Canada.

Currently, the government is in negotiations with two developers to build projects that will add just 30 MW to the 164 MW of wind power already in production in the province.

PEI’s tarnished vision underlines the delicate economics of renewable energy around the world, where subsidies and high energy prices are often the keys to getting projects off the ground.

While there is tremendous pressure on governments to wean their power grids off fossil fuel, renewables are still an expensive alternative that can push up electricity prices. There is also an increasing public pushback against huge turbine developments – or other “clean” generation projects – near populated areas, forcing politicians to think twice. Just last week, the Ontario government backed down on a proposed natural-gas-powered electricity plan in the populous – and wealthy – Toronto suburb of Oakville, after a well-organized and intense public protest.

In PEI’s case, a key problem was that expected North American “cap-and-trade” carbon-pricing policies did not come to pass, Energy Minister Richard Brown said in an interview at his office in Charlottetown. If they had, carbon credits associated with wind power would have made development on PEI much more viable, he said.

At the same time, the plunge of the global economy into recession didn’t help. “Economic conditions went down the tubes, and that opened up a lot of excess [power generation] capacity,” Mr. Brown said. Consequently, energy prices dropped, making wind less viable.

Still, “the plan is not dead ... we are still committed to 500 MW of wind,” Mr. Brown insists. The time frame has merely been extended until the economy turns around and energy prices make wind projects more viable. “Any developer that wants to come forward with a project on Prince Edward Island, I am more than pleased to entertain [their plans],” he said.

PEI’s plan was formulated at time when oil prices were above $100 (U.S.) a barrel, noted Dinara Millington, a senior economist with the Canadian Energy Research Institute in Calgary. But that didn’t last. “They did not foresee these kinds of issues, with the economy being so depressed and prices for fossil fuel energy being so low,” she said. That removed any incentives for private developers to jump in with big projects.

Essentially, unless energy prices show substantial and sustainable increases, in most jurisdictions wind power is not economical without subsidies of some sort, Ms. Millington said.

The dilemma for PEI is that if it pays too much to wind developers, electricity prices for consumers and businesses will have to go up, and some of those businesses may leave the island as a result, damaging the overall economy.

By contrast, Ontario can pay high “feed-in tariffs” for the wind and solar power it buys from developers because those renewables still make up just a tiny proportion of that province’s power generation and thus put less upward pressure on overall electricity prices. Even in Ontario, however, the shift to renewables has raised the spectre of higher power prices over the longer term.

“I’ve had developers come in here and say ‘well I can go to Ontario.’ ” Mr. Brown said. “My comment to them is, ‘If Ontario is offering a better deal, see you later.’ ”

Indeed, Ontario currently pays 13.5 cents per kilowatt-hour for on-shore wind power, while PEI pays just 7.75 cents. That makes PEI far less attractive, unless a developer can export some of its power at a much higher price.

With 22 per cent of PEI’s electricity currently generated by wind, “we’re already a world leader in renewable energy,” Mr. Brown said, but he’s not willing to push those numbers higher if it means subjecting islanders to higher rates.

Transmission is also an issue, if PEI is to become a bigger wind energy exporter. Currently, undersea cables carry power to the province from New Brunswick, and some wind power (from a privately owned wind farm) off the island. But that capacity is limited.

The federal government needs to help finance new transmission lines, Mr. Brown said, but Ottawa should also be taking the lead in creating a better east-west power grid that connects the provinces together. The current situation, where most provinces connect north-south to U.S. states, is inefficient and counterproductive to Canada’s energy and environmental interests, he said.

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/why-peis-wind-plan-is-dying/article1752506/

NSP, Daewoo ink deal on wind power

By The Canadian Press
Wed, Oct 20 - 4:53 AM

Nova Scotia Power and Daewoo Shipbuilding and Marine Engineering have agreed to build and use made-in Nova Scotia wind towers and blades across the province.

Premier Darrell Dexter says his government has signed a letter of intent that provides the opportunity for Daewoo to supply wind turbine components for up to 100 megawatts of capacity over the next four years.

The Nova Scotia government is a partner with Daewoo to build a wind turbine plant at the former TrentonWorks railcar factory.

Nova Scotia Power will work with Daewoo on having the Trenton plant supply the towers and blades required by the utility during the next several years.

The private utility company will also encourage the use of those components by independent power producers working on their own or in partnership with communities. Under the letter of intent, Daewoo would supply Nova Scotia Power with the wind turbine components, subject to competitive pricing and quality, and the ability to meet requirements of the utility’s turbine suppliers.

http://www.thechronicleherald.ca/Business/1207865.html

Power rate discussion being held in the dark

Hearings on latest NSP hike mostly behind closed doors
By JUDY MYRDEN Business Reporter
Wed, Oct 20 - 4:53 AM

Nova Scotians are being asked to pay an additional $7 per month for electricity starting next year but the public isn’t getting to hear much of the evidence.

The second day of public hearings into the rate increase were mostly held behind closed doors before the provincial Utility and Review Board, which sets power rates in Nova Scotia.

If approved, this will be the sixth power rate increase in nine years, with the average residential customer paying $244.08 every two months to keep the lights on, according to Nova Scotia Power.

Several consultants criticizing the proposed rate increase for homeowners and businesses testified in camera to the three board members hearing the case.

Other information about Nova Scotia Power’s coal contracts, the utility’s credit rating and mercury emissions were also marked confidential for only lawyers, consultants and board members to view.

One consultant testified Nova Scotia Power shareholders should pick up the tab for the utility ordering excessive amounts of coal in 2009, which resulted in higher carrying charges.

"I stand by my analysis of the costs borne by customers due to additional coal handling costs incurred in 2009 and would ask the board to consider that a portion of those cost should be borne by NSP and not the ratepayer base," Colin Gubbins, a U.K. coal consultant with McCloskey Group, told the board Tuesday.

He was hired by two of the province’s largest consumers of electricity, paper giants NewPage Port Hawkesbury and Bowater Mersey, which are facing an 11.3 per cent hike in power rates.

He also testified he could not find any evidence of Nova Scotia Power trying to renegotiate the coal supply contracts.

Gubbins criticized Nova Scotia Power for testing pricey low-sulphur coal during a time of year when electricity demand is high and requires more coal be burned. The utility was using the coal to ensure it met environmental rules.

The utility conducted its mercury testing in November and December of 2009, which resulted in higher fuel costs and environmental emissions that were much lower than regulations required, Gubbins testified in written evidence.

"It is unclear why ratepayers should incur additional costs in 2009 on account of a requirement effective in later years," Gubbins stated in the submission.

Earlier this year, Nova Scotia Power forecast power rate hikes of 12 per cent for residential customers and 18 per cent for industrial customers, so it could buy more expensive coal with reduced mercury content as the provincial government required.

But in late July, the Dexter government softened its pollution rules to save power customers money on their power bills. It extended until 2014 the deadline for the utility to lower its mercury emissions to 65 kilograms a year from 168 kg.

The deadline extension from 2010 will reduce Nova Scotia Power’s fuel expenses by $60 million for 2011, the company says.

It is forecasting fuel costs of $544.7 million for the year.

On Monday, a proposal was put forth to phase in the power rate increase over three years, but that was rejected by Nova Scotia Power.

The hearing continues today in Halifax.

Board chairman Peter Gurnham has stated a decision would probably be made in late November.

http://www.thechronicleherald.ca/Business/1207861.html

NSP rejects phased-in rate hike

Utility asking review board to approve 6.5% increase in power bills next year
By JUDY MYRDEN Business Reporter
Tue, Oct 19 - 4:53 AM

Nova Scotia Power rejected a proposal Monday recommended by a majority of its electricity customers to phase in a planned power rate increase over the next three years.

Senior utility executives distanced the company from any deferral of fuel costs, arguing that financial markets want the utility’s costs paid in a timely manner or it will face higher borrowing costs when it builds a wind farm.

Nova Scotia’s consumer advocate, representing the province’s 440,000 residential customers, supports the proposal so customers don’t face rate shock next year.

In the coming years, Nova Scotia Power’s customers will be faced with "significant" increases to pay for energy savings programs, higher fuel costs and capital expenses on renewable energy projects required to meet new environmental targets, said Bill Mahody.

"The compromise reached by many of the interveners properly allows for the smoothing out of fuel costs paid by ratepayers over a relatively brief period," said Mahody.

"This deferral mechanism provides NSP with an opportunity to share in the burden faced by its ratepayers while also making the company whole by the end of the deferral period."

News of Nova Scotia Power rejecting the deal came on the first day of a scheduled hearing into its application before the Utility and Review Board to hike power rates for residential customers by 6.5 per cent starting next year.

If approved by the board, it would be the sixth power rate increase in nine years in Nova Scotia.

The utility is also seeking rate increases of 8.6 per cent for commercial customers and 11.3 per cent for industrial customers. In addition, customers are facing an increase of almost three per cent on power bills starting Jan. 1 to cover the $41-million budget of setting up a new government agency to run energy efficiency programs.

"What we are concerned about is future costs for customers. . . . We truly have customers in mind when we think about future costs of financing," Brian Rendell, Nova Scotia Power’s vice-president of finance, testified Monday.

The utility requires low-cost financing as it is investing over $1 billion in renewable energy such as wind projects and tidal development, said Rick Janega, Nova Scotia Power’s chief operating officer.

Nova Scotia Power’s largest customer, NewPage Port Hawkesbury Corp., maintains double-digit power rate increases are "very troublesome" at any time but, in these "uncertain economic times," they are of even "greater concern," said NewPage lawyer David MacDougall.

He said the energy efficiency charges combined with the proposed rate increase will mean an 8.8 per cent increase for homeowners and 12.4 per cent increase for large industrial customers.

Nova Scotia Power argues that those figures are "exaggerated" and higher than its estimates.

The proposed phasing in of the rate increases was agreed to by NewPage, Bowater Mersey Paper Co. and the so-called Avon Valley group, representing businesses, as well as the consumer advocate.

MacDougall said the board has the discretion to defer power rate increases under the new method, which was approved by the board in 2009, for recovering fuel costs called the fuel adjustment mechanism.

Under the plan, an estimate of Nova Scotia Power’s base fuel costs is reset every two years and built into power rates. The estimate is later adjusted in two stages so customers pay the actual fuel costs.

Nova Scotia Power is estimating its fuel costs to be $544.7 million in 2011.

The hearing continues today in Halifax.

http://www.thechronicleherald.ca/Business/1207674.html

New Regulations Encourage Community-Based Renewable Projects

NS Dept of Energy

October 15, 2010 9:23 AM

New energy regulations announced today, Oct. 15, will help stabilize electricity costs for Nova Scotians, while promoting a greener, more sustainable province for generations to come.

The new regulations enable the province to increase the amount of renewable electricity produced in communities across Nova Scotia, to help government achieve the goals it set in the province's new Renewable Electricity Plan.

"These regulations are another step towards implementing some of the most aggressive renewable energy goals in the world," said Premier Darrell Dexter.

"These greener, local projects will help to create good jobs, provide a better future for Nova Scotians and reduce our overall dependence on imported carbon-based sources. This will help stabilize electricity prices over the long term and improve the environment."

The Renewable Electricity Regulations follow a consultation process that determined eligible technologies and who would qualify for a community-based feed-in tariff program, which involves a fixed pricing structure for renewable electricity production.

The Nova Scotia Utility and Review Board will immediately begin the process of setting rates for community-based feed-in projects, with a hearing in the new year and a decision expected by spring.

An on-line application and approval system is scheduled to be in place in the spring. A website and preliminary guide detailing how to participate is available at www.nsrenewables.ca.

Rates will vary for developmental tidal projects and community-based projects such as small-scale in-stream tidal, run-of-the-river hydroelectricity, and biomass combined heat and power systems.

Wind projects will also face different rates -- one for projects over 50 kW and another for micro-scale projects under 50 kW. This ensures a variety of community opportunities and support development of Nova Scotia companies.

"The new regulations are an exciting step forward for Nova Scotia and it should help our company build its wind turbine business both locally and globally," said Jonathan Barry, president of Seaforth Energy. "The ability of Nova Scotians and businesses to participate in community energy will help us to scale up our operations, research and development and manufacturing and will make us more competitive globally."

"The new Renewable Electricity Regulations are very important in helping provide us with direction to move forward with the implementation of our Regional Energy Strategy for Cumberland County," said Shawna Eason, Cumberland County energy officer. "Our strategic priorities, especially wind energy development of both large scale and community projects, will benefit from the COMFIT program, helping us to increase the amount of sustainable, clean energy generated in Cumberland County."

The regulations put the Renewable Electricity Plan into action and puts Nova Scotia on course to reach its target of 25 per cent of renewable electricity supply by 2015 and a goal of 40 per cent by 2020.

The new regulations provide opportunities for combined heat and power projects, where a proponent has direct access to a biofuel source, such as sawmills, farms and greenhouses.

Medium to large-scale renewable electricity projects by independent power producers will be subject to a competitive bidding process overseen by a renewable electricity administrator who will set rates.

Talks are continuing between the province and the Mi'kmaq to encourage the development of renewable electricity projects on First Nations. The regulations are expected to be amended to incorporate agreements reached.

The province will review and analyze the progress of the Renewable Electricity Plan, with a special focus on the COMFIT program, within 18 months of implementation to determine whether the regulations are achieving its goals.

http://gov.ns.ca/news/details.asp?id=20101015002

NSP reviewing biomass decision

Utility weighing conditions imposed by utility and review board
By JUDY MYRDEN Business Reporter
Sat, Oct 16 - 4:54 AM

A day after getting the government go-ahead for its proposed $208-million biomass-burning project outside Port Hawkesbury, Nova Scotia Power couldn’t say Friday if it will proceed.

Executive vice-president Robin McAdam told The Chronicle Herald that the power company is still reviewing the provincial regulator’s decision, which approved the electricity-generating project but stipulated that any cost overruns must be borne by the utility’s shareholders, not its customers.

"So, I don’t have a clear fix on that," McAdam said.

"But be assured there’s a lot of work going on."

Nova Scotia Power will not appeal the Utility and Review Board’s ruling but is studying the conditions the board imposed.

"That’s something we’re still working our way through, but I expect there’s a way to advance the project," McAdam said. "There’s a process we have to go through to carefully consider the conditions and we are doing that."

Nova Scotia Power and its largest customer, NewPage Port Hawkesbury, have been given the green light to burn 650,000 tonnes of wood waste a year for 40 years at NewPage’s Point Tupper plant, producing enough electricity for 50,000 homes.

The review board’s 50-page decision, written by chairman Peter Gurnham, includes several conditions intended to protect Nova Scotia Power’s 470,000 customers.

Gurnham wrote that the most important part of the project is a contract worth $92.9 million covering engineering, procurement and construction costs.

Any additional costs cannot be passed along to Nova Scotia Power customers, he ruled.

The board noted that Nova Scotia Power "has shown an unusual aversion to shareholder risk" in twice presenting this project to the board for approval.

McAdam was noncommittal Friday on whether the utility is prepared to shift any risk to its shareholders.

"Our job is to provide electricity at the lowest possible cost to our customers of Nova Scotia, and we are able to do that because of the kind of regulatory regime that we have here," he said.

"We work to keep the risk at the right level so we can raise money at the lowest possible cost. When we raise money at the lowest possible cost, customers benefit.

"We manage the risk profile to the best of our ability."

The board also ordered that Nova Scotia Power’s shareholders, not its customers, be on the hook if a penalty clause kicks in for a late start to the project.

Also, if there are capital cost overruns, the power company must come back before the board for another public hearing.

The board also addressed the financial woes of NewPage Corp., the Ohio parent company of NewPage Port Hawkesbury.

NewPage has reported having only $7 million in cash and $113 million available on a line of credit while being $3.3 billion in debt and facing annual debt servicing charges of $330 million.

If NewPage or its Nova Scotia subsidiary fails, no additional project costs can be passed on to Nova Scotia Power customers, the board ordered.

The utility has said it needs the biomass project to proceed in order to meet the province’s renewable energy target of generating 10 per cent of its electricity from wind, tides or biomass by 2013.

http://www.thechronicleherald.ca/Business/1207146.html

$208m biomass project gets OK

By JUDY MYRDEN Business Reporter
Fri, Oct 15 - 7:02 AM

A $208-million project to generate electricity by burning wood waste in a paper mill outside Port Hawkesbury was approved with conditions Thursday by the province’s Utility and Review Board.

Nova Scotia Power and its largest customer, NewPage Port Hawkesbury, were given the go-ahead to proceed with the project at the Point Tupper mill, and they expect to burn 650,000 tonnes of biomass a year for 40 years, producing enough electricity for 50,000 homes.

Opponents say the regulatory board’s decision will clear the way for more tree-cutting in the province and increase carbon emissions.

The board’s 50-page decision, written by chairman Peter Gurnham, includes several conditions to provide safeguards for Nova Scotia Power’s 470,000 customers.

Gurnham wrote that the most important part of the project is a contract worth $92.9 million covering engineering, procurement and construction costs. Any additional costs cannot be passed along to Nova Scotia Power customers.

The board also ordered that Nova Scotia Power’s shareholders, not its customers, be on the hook if a penalty clause kicks in for a late start to the project. Also, if there are capital cost overruns, the power company must come back before the board for another public hearing.

The board also addressed the financial woes of NewPage Corp., the Ohio parent company of NewPage Port Hawkesbury. NewPage has reported having only $7 million in cash and $113 million available on a line of credit while being $3.3 billion in debt and facing annual debt servicing charges of $330 million.

If NewPage or its Nova Scotia subsidiary fails, no additional project costs can be passed on to Nova Scotia Power customers, the board ordered in its decision.

The utility says it needs the biomass project to proceed in order to meet the province’s renewable energy target of generating 10 per cent of its electricity from wind, tides or biomass by 2013.

The Ecology Action Centre of Halifax, which opposes the project, is concerned over the supply of biomass and said the review board should have waited for the provincial government’s new policy on forestry practices, expected to be unveiled later this month.

"We’re especially disappointed that this decision is going forward before the natural resources strategy is being released," said Jamie Simpson, forestry program co-ordinator for the Ecology Action Centre.

"(The new) regulations should come first, and then decide where we want to go with forest biomass harvesting."

Simpson also said the project will place a major new stress on forests and will require an extra 350,000 tonnes of clearcutting a year.

NewPage Port Hawkesbury said it was pleased with the board’s approval, especially since the board rejected a similar proposal last year.

"It’s great news for all of Nova Scotia that we are going to be able to provide a significant contribution to the generation of renewable energy in the province," said Bill Stewart, the company’s director of woodlands and strategic initiatives.

Stewart said the project will create about 150 new jobs in the seven eastern counties of Nova Scotia in trucking, harvesting and silviculture.

Port Hawkesbury Mayor Billy Joe MacLean acknowledged there is deep opposition to the project in some quarters but he said NewPage is a reputable company that will manage the forests properly.

"The company is a good community-minded company and they are the mainstay of our economic base here," the mayor said.

Independent sawmill operator Murray MacDonald, who owns or leases more than 6,000 hectares of timber in Pictou County, said the news was like a shot in the arm to the forestry industry.

"It builds confidence and it is positive news for our industry," said MacDonald, president of M.R. Holdings Ltd. "Everyone in the industry is going to benefit from this, but we must make sure to keep biomass secondary to the sawmills."

Energy Minister Bill Estabrooks applauded the review board’s decision.

"It’s important for Port Hawkesbury particularly, (and all of) rural Nova Scotia," he said.

Estabrooks also noted that Nova Scotia Power customers are protected from any risks.

With Jeffrey Simpson and Mary Ellen MacIntyre, staff reporters

http://www.thechronicleherald.ca/Front/1207046.html

NSP wants to test ‘smart grid’

Green technology saves users’ cash
BY JUDY MYRDEN Business Reporter
Sat, Oct 9 - 4:53 AM

Nova Scotia Power is looking to spend $4.3 million to find out if customers are prepared to save money on their power bills while helping the environment.

The utility wants to participate in a regional pilot project to help manage the electricity grid and use wind power more effectively by using "smart grid" technology.

Here’s how it would work.

When the wind is not blowing, the utility wants to be able to shut off customers’ hot water heaters, instead of what they do today, which is switching to another fuel source like coal.

The idea behind the program "is to save energy and increase the use of renewables," said Nova Scotia Power spokeswoman Patty Faith, on Friday.

The study will select up to 1,500 residential customers and 150 commercial customers to participate in the test. About 750 will be in Nova Scotia.

Faith said the customers and the areas in this province to be tested will not be decided until the expenditure is approved by the Nova Scotia Utility and Review Board.

If approved, Nova Scotia Power would install special devices on water heaters that communicate with the electrical grid. The devices would tell the appliances to turn on or off, depending on the conditions of the system and the amount of renewable energy available.

Homeowners shouldn’t notice if their hot water or space heater was turned off, Faith said.

The pilot project will evaluate, "the customers’ role and their acceptance of utility load control for the purposes of renewable energy integration," the power company said in its application to the board.

Called PowerShift Atlantic, the $32-million project was first announced in July in Fredericton when the federal government announced it would provide $15.9 million through the federal government’s Clean Energy Fund.

"The challenges with wind generation are the variability and uncertainty of production levels to match customer demand. If proven commercially viable, load control, as an ancillary service, may provide an effective means of dealing with wind energy intermittency," the utility’s application said.

"This is a unique opportunity to look at how you can take that technology and use it to balance intermittent power like wind," said Faith.

Participants in the study besides Nova Scotia Power are NB Power, Maritime Electric Co. Ltd. of Prince Edward Island, the University of New Brunswick and the power commission in Saint John, N.B.

http://www.thechronicleherald.ca/Business/1206040.html

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Note

I effectively already do this. I have an Aube T1040 timer which turns my hot water heater on for two hours in the early morning and that is enough hot water for me for the rest of the day. With this and other power saving tactics, my daily power usage was down to 7.2 kWh on my last power bill.

Expert touts Churchill Falls, Point Lepreau power projects

By JUDY MYRDEN Business Reporter
Wed, Oct 6 - 4:53 AM

Atlantic Canada should push ahead with the $6.5-billion Lower Churchill Falls hydroelectric project in Newfoundland and a second nuclear reactor at Point Lepreau in New Brunswick, a U.S. energy expert said Tuesday.

Roger Gale, chief executive of GF Energy of Washington, D.C., made the comment the day before he was to be the keynote speaker at a closed-door meeting in Halifax that will discuss the region’s energy future.

Today’s meeting is sponsored by the Association of Atlantic Universities. About 35 invited guests are expected to attend.

Any new electricity-producing projects must be done in an environmentally clean way, Gale said.

The Lower Churchill, which is still years away from producing power, and a second nuclear reactor in New Brunswick are the "best ways" to make electricity and over the life of the projects, they are probably the "cheapest ways" to make power, he said.

Gale said there is a "huge transformation" underway in North America on how consumers use electricity.

"We are going to have electric vehicles; that means at night, when we don’t have much electricity demand, we can charge and store electricity, which we have never been able to do before," he said.

Scheduled to attend the one-day meeting at The Citadel are Nova Scotia Power president Rob Bennett and Stan Marshall, president of Fortis Inc. of St. John’s, N.L.

Also expected to attend are Atlantic Provinces Economic Council president Elizabeth Beale, St. Mary’s University president Colin Dodds and Scott Travers of Minas Basin Pulp and Power Co. Ltd.

Peter Halpin said this is the second Atlantic Leaders’ Summit hosted by the association, which represents 17 institutions.

"This is a way to get a very open discussion about issues and opportunities that are critical to the region," Halpin, the association’s executive director said.

http://www.thechronicleherald.ca/Business/1205585.html

Power from the mountain

Wind farm now feeding into grid By Our Staff Tue, Oct 5 - 4:53 AM Nova Scotia Power’s $120-million Nuttby Mountain Wind Farm is now providing electricity to homes and businesses in the province, the utility announced Monday. The company says five of the planned 22 wind turbines are in operation at the Colchester County site, and by the end of the year the remaining turbines will be fully operational, producing enough electricity for 15,000 homes. "These are exciting times for our company and for the province as we continue to bring more renewable energy online," Robin McAdam, Nova Scotia Power vice-president, said in a news release. "The Nuttby wind farm will provide value for our customers, delivering price stability over the medium to long term, while reinforcing our commitment to meet Nova Scotia’s renewable energy targets." Nova Scotia Power customers will pay for the project through their power bills but the exact amount will not be known until the utility goes before the Nova Scotia Utility and Review Board for a general rate application, Nova Scotia Power spokeswoman Patty Faith said Monday. Nova Scotia Power originally selected the 45-megawatt wind project as part of its request for proposals in 2007 for renewable energy from independent power producers. Financial troubles drove the developer — EarthFirst Canada Inc. of Calgary — into bankruptcy and NSP picked up the development rights in April 2009. The review board approved the 22-turbine project on Nuttby Mountain in December 2009. Government regulators rejected the company’s request to be able to sell 51 per cent interest in the wind farm. Nova Scotia Power had hoped to get advance approval for the sale, which would allow the wind-generated electricity to be counted toward the 2011 independent green energy target. (The utility has to buy five per cent of its electricity from independent energy sources by that date.) The review board argued that it is up to the courts to decide on the interpretation of provincial legislation, and a ruling now would be "simply premature." The project, located about 20 kilometres north of Truro, has the potential to reduce greenhouse gas emissions in Nova Scotia by more than 100,000 tonnes annually. Nova Scotia Power expects to have more than 280 megawatts of wind-generated electricity on the power grid by the end of 2010, representing 11 per cent of Nova Scotia’s generation capacity. In addition to Nuttby Mountain, NSP’s 30-megawatt Digby wind project is progressing, with full commissioning planned for the end of this year. The Point Tupper wind farm was commissioned on Aug. 4 and Nova Scotia Power has a 49 per cent interest in the 22-megawatt Renewable Energy Services Limited wind project. http://www.thechronicleherald.ca/Business/1205447.html