At odds over renewable energy

NDP, Tories play blame game over energy costs
By DAVID JACKSON Provincial Reporter
Fri, Sep 23 - 4:55 AM

Premier Darrell Dexter and Tory Leader Jamie Baillie traded offers of blackboard lessons Thursday as they debated the cost of renewable energy to power consumers.

The Tories have for weeks chided the Dexter government about its renewable energy targets driving up costs.

A Tory news release Wednesday said it appeared about 25 per cent of the proposed electricity rate hike was attributable to government policies, but a caucus spokeswoman said Thursday the power costs are so intertwined that a definite figure is unknown.

Dexter accused the third-place party of advocating a fossil fuel policy that led to a 35 per cent increase in electricity costs from 2002 to 2009. He also said the price of coal, Nova Scotia Power’s main fuel, is up 75 per cent in the last six years.

"Maybe the next time I try to explain it, maybe I should use a blackboard because it’s a choice between having a graph line that continues to go up, and one that allows you to create a stable energy price or a flat line," Dexter said.

"I’m not sure why they have so much difficulty trying to grasp the simple concept that, you know, the faster you can get to stable energy prices, the better off the public is."

Baillie said renewable energy sources are the way to go, but at a pace Nova Scotians can afford.

"If we’re going to get a blackboard out, I would like to teach him Economics 101, that raising the HST and forcing power prices up costs jobs and it hurts families."

The provincial Utility and Review Board is considering an agreement between Nova Scotia Power and most of its customer groups for an average increase of a little more than five per cent in 2012. It would add about a $6 a month to the average household power bill.

The Dexter government wants 25 per cent of the province’s electricity to be generated from renewable energy, such as wind, biomass and tidal energy, by 2015, and 40 per cent by 2020.

http://thechronicleherald.ca/NovaScotia/1264642.html

Nova Scotia Power may have finally heeded its wakeup call

By ROGER TAYLOR Business Columnist
Tue, Sep 20 - 4:54 AM

Could it be that Nova Scotia Power Inc. is starting to clue in to the consequences of higher power rates?

The provincial power monopoly announced Monday that it had reached an agreement with advocates who act on behalf of consumers and industry on its latest rate application.

Not surprisingly, the negotiated rate increase is less than its initial application in May.

If the deal is ultimately approved by the Nova Scotia Utility and Review Board, it would mean that residential customers will see their power rates increased by an average of about five per cent next year, which someone has calculated would mean $6 added to the average monthly residential bill.

The revised increase is down from the 7.2 per cent the utility had originally asked for in its rate application to the review board.

The agreement would also defer until its next rate application the power company’s recovery of any fixed costs that may come about as a result of the indefinite closure of the NewPage Port Hawkesbury Ltd. paper mill in Cape Breton.

Ratepayers couldn’t be blamed for being fed up with what seem to be yearly power rate increases and had been bracing themselves for another boost this fall.

Nova Scotia Power is a monopoly and one of Nova Scotia’s largest employers, so it isn’t a stretch to suggest that what’s good for Nova Scotia is probably good for Nova Scotia Power. Vice versa isn’t necessarily true.

Even though the utility is regularly put through a wringer by the regulator to justify the increase it requests, ordinary ratepayers see the company’s return on equity, which is its profit margin, and they automatically think that number is too high.

In the past, that criticism was brushed aside with a number of explanations, such as the Nova Scotia Power rate is similar to what other utilities were making or the regulator set the rate of return and the power company has little authority to change it.

In the agreement announced Monday, the increase in the rate of return Nova Scotia Power will be seeking has been reduced to 9.2 per cent instead of a range of 9.35 to 9.6 per cent in the initial application.

When NewPage, one of Nova Scotia Power’s largest customers, sought protection from creditors recently, citing the high cost of electricity as one of the biggest reasons, it was a wakeup call for the power company and, frankly, everyone in the province.

Perhaps the management at Nova Scotia Power realized it wasn’t prudent business practice to continually ask the regulator to increase rates, even though those increases could be justified in some way, because it forced people to use less power.

Higher rates may appear to pay off for the power company’s bottom line, but it doesn’t make sense if it means Nova Scotia Power could be forcing many of its customers out of business or to seek lower energy prices in other provinces.

If Nova Scotia Power had not been part of a regulated industry in its home province, it could be argued the power company would be less likely to jack up power rates simply because it felt the need to provide a certain rate of return. In that case, the utility would have to be conscious of the potential for competitors to swoop in and take away market share by offering a more competitive price for electricity.

http://thechronicleherald.ca/Business/1264189.html

NSP offers reduced rate hike

Proposal would increase residential customers’ bills by $6 a month in 2012
By BRUCE ERSKINE Business Reporter
Tue, Sep 20 - 4:54 AM

Residential customers will pay about $6 more a month for electricity in 2012 under a rate settlement deal tabled Monday with the Utility and Review Board.

The agreement, subject to board approval, will increase power rates by an average of about five per cent next year, down from the 7.2 per cent Nova Scotia Power Inc. asked for in a filing with the board in May.

"I think it’s a very good settlement for ratepayers, obviously," said provincially appointed consumer advocate John Merrick after the agreement was announced at the start of a scheduled hearing on the rate increase application.

"It’s brought down the request for revenue increases by about $24 (million) or $25 million — we’re still working the calculation of the fine numbers — the executive bonuses are gone, the rate of return that they were seeking to increase from 9.35 (per cent) to 9.6 is down to 9.2," Merrick said.

"We think they moved considerably; they moved to where we wanted them to be and we’re quite comfortable with the outcome."

The agreement reduces Nova Scotia Power’s revenue requirements for 2012 to $66.5 million from $94.4 million.

Merrick, a Halifax lawyer, said the return on equity concession was particularly important, since it governs the amount of money Nova Scotia Power is allowed to put in its own pocket.

"That’s been something that’s troubled us for some time. We started out wanting to see that reduced and it got reduced."

Return on equity is fixed at 9.2 per cent for 2012, with an allowed range of 9.1 per cent to 9.5 per cent.

The agreement includes a deferral mechanism that will allow Nova Scotia Power to recover about $30 million in fixed costs for 2012 associated with this month’s shutdown of the NewPage Port Hawkesbury paper mill, the utility’s largest customer.

"The differential for the load retention of NewPage is still a cost that consumers are going to have to pick up," Merrick said. "All we’ve managed to do is to defer it for one year."

The consumer advocate said his office will push Nova Scotia Power to minimize the impact of the NewPage closure, which he said could increase consumer rates by another two to three percentage points.

Rob Bennett, Nova Scotia Power’s president and CEO, said he was happy with the agreement, which maintains tree-clearing and storm repair budgets for 2012 at current levels.

"We’re trying to create a new energy future here in Nova Scotia and this open, transparent dialogue with customers is an important part of that," he said Monday.

Bennett said the agreement reflects the utility’s efforts to move away from its dependency on fossil fuels such as coal toward more renewable energy sources.

"Fossil fuels are a huge part of the driving force behind rate increases and they have been for years. We’re trying to change that."

Government-mandated conservation charges could add another two percentage points to consumer rates, but Bennett said conservation will ultimately save customers money.

"While rates may be impacted slightly by conservation programs, we have to remember that that allows the average customer to save money on their power bill."

Premier Darrell Dexter said he’s looking forward to the review board’s reaction to the agreement.

"Anything that’s less than what was anticipated will be welcome, but the reality is that it’s still tougher, when the cost of electricity goes up, for people to make ends meet," Dexter said Monday.

He said the rate increase underlines the need to reduce the reliance on fossil fuels to generate electricity.

"What people have to understand is that the price of coal over the last six years has gone up by 75 per cent. The only way that we can stop the price of power from going up is to stop buying coal.

"So we need to have a program that gets us off of those kinds of fossil fuels into renewables."

Progressive Conservative Leader Jamie Baillie applauded the agreement’s return on equity and executive bonus concessions, which mirror legislation his party plans to table in the next sitting of the legislature.

"There’s a lot government can do to moderate power rates," he said.

Utility spokesman David

Rodenhiser said 2012 executive compensation incentives aren’t being cut but the 50 per cent portion that previously came from rates will come from shareholders.

Power company representatives will answer questions about the proposal from review board members and interveners on Wednesday.

Nova Scotia Power stock was trading for $27.50 a share on the Toronto Stock Exchange on Monday afternoon, down 13 cents from its previous close.

With files from David Jackson

http://thechronicleherald.ca/Front/1264042.html

Cape Breton Tidal energy project proposal on the way

Mon, Sep 19 - 4:54 AM

SYDNEY — The group behind a tidal energy venture in central Cape Breton is expected to submit its proposal to the province today.

Central Cape Breton Community Ventures wants to develop a multimillion-dollar marine research centre in Iona in partnership with Fundy Tidal Inc.

The project would be powered by the strong currents in the Barra Strait on the Bras d’Or Lakes.

The proposed marine science centre would focus on research of the lake’s marine ecosystem.

Randy Pointkoski, a spokesman for Central Cape Breton Community Ventures, said the research facility and power station could cost between $30 million and $33 million.

http://thechronicleherald.ca/NovaScotia/1263832.html

Hear about Glen Dhu expansion today

Mon, Sep 19 - 4:54 AM

The company that built a set of wind turbines east of New Glasgow is holding a public meeting today to inform citizens of a proposed expansion.

Shear Wind Inc. of Halifax is moving through the environmental assessment stages to develop a 50-megawatt wind farm at Glen Dhu.

Known as Glen Dhu South, it would be a continuation of Glen Dhu North, which opened last May, chief operating officer Ian Tillard said in a news release.

The proposal is in response to a planned request for bids from Nova Scotia’s renewable electricity administrator, Power Advisory LLC, Tillard said.

Two public sessions will be held today at Kenzieville & District Community Centre. The first is from 1 to 3 p.m. and the second is from 5 to 7 p.m.

http://thechronicleherald.ca/NovaScotia/1263964.html

Amherst Turbine parts set to be assembled

By CHRIS LAMBIE Business Editor
Tue, Sep 13 - 4:54 AM

Like a giant toy set, Sprott Power Corp. is assembling the parts for its $61-million Amherst wind project.

Thirty-six 48-metre-long turbine blades, manufactured in Spain by L&M Fibreglass Inc., are now sitting at the Ocean Terminals in Halifax, with another nine scheduled to arrive at the end of this week. Starting the middle of next month, they will be trucked to the wind farm located on a sod farm near the Tantramar Marshes.

The hubs that contain the gearboxes, generators and other electronic equipment, manufactured in India for Suzlon Energy Ltd., are slated to arrive by ship in the Port of Halifax this weekend. Towers made at the former TrentonWorks railcar plant now known as DSTN Trenton Ltd. will also be part of the project.

"It’s like one big giant Lego set," Jeff Jenner, president and chief executive officer of Sprott Power Corp. of Toronto, said Monday.

Now the weather just has to co-operate for a timeline that aims to see construction completed late this year or in early 2012.

"You’re always subject to construction risk," Jenner said. "Hopefully Nova Scotia has its summer now. It didn’t have a summer in the last two months. Hopefully it’s nice and hot and dry for the next couple of months. It makes for easier construction."

The project is slated to include 15 turbines that will, all told, have a capacity of 31.5 megawatts, enough to power 10,000 homes.

They are expected to first produce power in the first quarter of 2012.

"It’s still looking good," Jenner said of that agenda.

Sprott could face penalties if it doesn’t fulfil its contract with Nova Scotia Power by August.

"So we have a fairly comfortable timeline," he said, noting Sprott has "offsetting contractual penalties for late delivery" arranged with Suzlon, its main contractor, and Indiana-based White Construction, Inc.

The first foundation was poured on the Amherst site last week, Jenner said.

"All the roads are done and about half of the foundations are in various process of completion. Once the foundations are done, obviously the towers and the blades will begin to roll to the project, probably within 30 days."

Moving the blades is a delicate operation. Two of them may fit on a transport trailer, but the truck driver will have to avoid sharp turns and drive slowly.

"Forty-eight metres doesn’t sound like a lot, but it’s half a football field," Jenner said. "To have something that’s somewhat fragile move without bending or breaking it takes a lot of effort. . . . The reason we’re in the Port of Halifax is it’s a reasonably straight shot to get out of Halifax and on the road to Amherst."

South Korea-based Daewoo Shipbuilding and Marine Engineering and the provincial government took over the Trenton plant last year with the aim of manufacturing steel towers for wind turbines.

"The towers are beginning to roll out of DSTN," Jenner said, noting that those 80-metre-tall structures will be trucked to Amherst in sections.

"Each tower, once it’s assembled, is 25 storeys high. But they come in three or four sections."

Most of the subcontractors working on the Amherst project are local, he said.

"I expect there are roughly 50 total people at the site right now," Jenner said.

http://thechronicleherald.ca/Business/1262970.html

Renewable energy plan attracts wind farm developers

By JOANN ALBERSTAT Business Reporter
Fri, Sep 9 - 4:54 AM

It looks like there will be no shortage of wind farm developers bidding early next year to get their projects off the ground.

About 80 people, most representing wind energy companies, took part in a meeting Thursday in Halifax hosted by the province’s renewable electricity administrator.

"It’s a small pond with a lot of big fish in it," Dan Roscoe, chief operating officer of Dartmouth’s Scotian WindFields, said.

"There’s a lot of big players, a lot of international companies, and, really, we’re looking at three or four projects."

The renewable energy plan requires Nova Scotia Power to buy 300 gigawatt hours per year of electricity from independent producers as part of the province’s next round of renewable energy electricity projects. That’s equal to 100 megawatts of wind power.

The province wants to have 25 per cent of electricity come from renewable sources by 2015, and 40 per cent by 2020.

John Dalton, whose Massachusetts company is overseeing the bid process, said the preliminary plan was to have independent producers notify him of their intentions by Oct. 20.

"One party has already indicated the schedule is too aggressive; they’d like more time," the president of Power Advisory said at the start of the meeting.

While the administrator said he’ll consider making changes, others in the audience agreed with the proposed timeline, which would see projects be in service by Jan. 1, 2015.

Independent producers will have to submit their proposals in February and March. The administrator will review them and make recommendations to the Utility and Review Board.

The provincial regulator makes the final decision, with winners being announced in April.

Independent producers shared varying opinions Thursday on whether they should be able to win more than one contract.

The administrator’s initial plan includes such a restriction and also limits project capacity to 50 megawatts.

"We’re going to assess that whole situation," Mike Magnus, president and chief executive officer of Shear Wind, said during a break when asked about the one-contract restriction.

"From the question and answer (session), obviously they’ve got to reassess it as well. It’s a concern."

Shear Wind would like to expand its Glen Dhu wind farm, a 62.1-megawatt facility between Pictou and Antigonish counties, which opened earlier this year. The company has also proposed a 50-megawatt development near Parrsboro, Cumberland County.

Dalton said the feedback will be used to help develop program guidelines this fall.

"We’ve got a good group of prospective bidders in the room," he said after the session.

"We’ve had some good, frank feedback, which we can use to help us refine the proposals that we’ve put forward."

For instance, Dalton said it might be possible to allow developers to be involved in more than one winning bid as long as there are limits on their overall share.

http://thechronicleherald.ca/Business/1262333.html