Wednesday, May 16, 2012

Kings County says no to wind farm

May 15, 2012 - 8:58pm
by Gordon Delaney, Valley Bureau

Council takes first step toward ban on turbines


KENTVILLE — Large-scale wind farms will be unwelcome in any part of Kings County, at least in the immediate future.

Municipal council on Tuesday night gave first reading to a recommendation from its planning advisory committee to prohibit all major wind projects while it reviews issues around the controversial developments.

The move comes in response to strong public opposition to proposed large-scale wind farms in the Greenfield area on the South Mountain and a large swath of land from Arlington to the West Black Rock Road on the North Mountain.

Residents of both areas have lobbied council against the wind plans and presented petitions to the committee and council.

Second reading is expected in July, following a public meeting next month. The amendment must then be approved by the province.

“There are people here who have building lots and are afraid to build on them,” Coun. Mike Ennis said Tuesday night at a special council meeting to deal with the issue. “It’s their community and I think they’ve spoken loud and clear.”

Coun. Dick Killam, who represents part of the North Mountain area, said the debate over wind turbines has caused much stress for residents.

“They have health and safety concerns. ... We can’t just rush ahead and allow this to happen.”

The proposed North Mountain wind farm would cause problems for the military at 14 Wing Greenwood, which has expressed concerns over interruption of radar coverage, Killam said.

But councillors were at odds on a motion asking for a five-year moratorium on large-scale wind farms, referring the matter back to its planning advisory committee.

Coun. Wayne Atwater said a five-year moratorium is giving wind farm opponents “faint hope” because a new council could overturn the decision. Municipal elections will be held in October.

“The only protection we can give is for the next six months,” Atwater said.

Warden Diana Brothers said she supported the moratorium and it’s up to the public to hold future councils accountable.

“There are way too many concerns about wind turbines and too few answers,” said Coun. Basil Hall.

“I think we need to put out a very clear indication of where we intend to go in this county.”

Coun. Fred Whalen argued against the five-year moratorium, suggesting a new council could overturn it.

“And it sends out a message that we’re closed for business. I think we need to leave the door open a little bit,” Whalen said, noting that the province has renewable energy goals to fulfil.

Council will rescind its current wind turbine bylaw, which allows large-scale developments if they meet the county’s zoning and planning criteria. It was just approved by council last year after a series of public meetings.

But the public got more involved in the process after learning of Scotian Windfield’s proposed development on the South Mountain, and a proposed wind farm by Acciona, a multinational company based in Spain. The development would see 20 to 30 large wind turbines on the North Mountain.

http://thechronicleherald.ca/novascotia/96511-kings-county-says-no-to-wind-farms

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If Kings County can do it why can't Cumberland County?

In energy game, ratepayers lose

May 13, 2012
Rachel Brighton

Along with making luxury payments to its top executive and seeking back-to-back rate hikes for two years, Nova Scotia Power Inc. is also nudging for higher returns for its shareholders.

The regulated return on equity for shareholders fluctuates around 9.2 per cent, and last year it reached 9.6 per cent.

But the allowable rate is “bare bones” and ought to be closer to 10 per cent, according to a detailed report that formed part of the rate application submitted to the Nova Scotia Utility and Review Board this week.

Expert evidence commissioned for the report suggests the utility’s return on equity is low and should be “competitive with those of its peers.”

Some utilities in Canada and the United States set higher rates for return on equity and allow higher ratios of equity to debt. These combined factors place the utility at a disadvantage, according to the report.

It seems Nova Scotia Power may be warming up the room for a future application to bump up the allowed return on equity, when we all get over the current rate bump.

In the meantime, shareholder demands and credit concerns are driving factors behind the current application, which would push up rates by three per cent in 2013 and again in 2014.

Without these rate hikes, shareholders’ return on equity would nosedive from the nine-per cent range to below three per cent in 2013 and below six per cent in 2014.

As well, the utility’s ratio of cash flow to debt would be critically low. This could lead to downgrading of the utility’s creditworthiness and an increase in its borrowing costs, following a negatively revised outlook from Standard & Poor’s rating agency this year.

The rate application also pours cold water on the idea that the shift to renewable energy will ease pressure on power rates.

Using more green power promises to reduce spending on fossil fuel, which should reduce our power bills because wind, tidal and hydro are “free.”

But fuel savings will be offset by increased capital expenses that will see more money spent on interest and dividends to finance the infrastructure needed for renewable energy production.

All this means that power rates will be under pressure from the markets, along with our own government’s push for green power.

The demands of paper mills for major subsidies from other ratepayers will also drive up rates, as will the current weak demand for electricity.

Part of that reduced demand reflects the effectiveness of the conservation programs that we pay for with a surcharge on our power bills.

Yet it’s a win-lose scenario, because the more power we save, the more we pay as the utility raises rates to cover the lost consumption.

The only winners in this energy game are shareholders, power producers, and, for the short or the long term, the subsidized paper mills.

This leaves lowly ratepayers two choices: buy shares in Nova Scotia Power’s parent company or get off the grid and produce your own green energy.

Rachel Brighton is a freelance journalist and former magazine publisher. She writes on environmental technology for the new Herald Magazine and on small business for The Chronicle Herald.


http://thechronicleherald.ca/business/95838-in-energy-game-ratepayers-lose