Update to membership and friends - and blog followers

NS Department of Energy has released the Request for Proposals (RFP) to renewable energy developers. This would include the developers of the Pugwash wind project.

The RFP release has been delayed due to wrangling between various parties over the Power Purchase Agreement (PPA). This is a shell form that is used to form an agreement between developers and Nova Scotia Power once the projects have been approved.

Once the PPA was approved by the Utilities and Review Board (UARB), the final wording of the RFP was determined and finally released. Because of these delays, the format of how projects are to be submitted is a little different to how we had been originally told. The proponents now have until June 27th to submit their projects to the Renewable Energy Administrator (REA).

The proponents' projects are scored by the REA from predetermined criteria (see below). In the case of a tie, other factors could have influence, for example input from the public to the REA.

The REA, which is in Massachusetts with an office in Toronto, only knows what the developer submits in their project proposal. The developer is going to present the very best case they can to the REA in order to win the bid.

It is up to those of us who care about the Pugwash economy and quality of life to make sure that the REA is truly informed about the Pugwash project - warts and all.

There are many other wind projects on offer that are abundantly better located, planned and prepared - the extensions to existing projects at Glen Dhu and Dalhousie Mountain come to mind.

We have been going though this process for over 5.5 years. Now we have 17 days to make sure the people who are going to make a decision that could affect all our lives forever know all that they need to know about this project, particularly those uglier facts that you can be assured will not be included in the project proposal. Check out the criteria list below and please make sure the REA knows all what we know. What they will find out for sure is that this is a contentious and unpopular project and that it will not score well in "Community Acceptance". Copy your emails to your MLA and NS Ministers too. Make sure you get your letters in by June 27th.

The Department of the Environment received unprecedented volumes of letters over our objections to the Pugwash project EA. The government is taking notice. Lets make sure the REA knows where Pugwash, Nova Scotia is too!

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The RFP is at: http://nsrenewables.ca/request-proposals
The Environmental Assessments are at: http://www.gov.ns.ca/nse/ea/

Renewable Energy Administrator (REA): REA@poweradvisoryllc.com
NS Minister of Environment, Sterling Belliveau: min_env@gov.ns.ca
NS Minister of Energy, Charlie Parker: energyminister@gov.ns.ca
MLA for Cumberland North, Brian Skabar: brian@brianskabarmla.ca

The REA can also be contacted via their website http://poweradvisoryllc.com/contact.html or
http://nsrenewables.ca/competitive-bidding/renewable-electricity-administrator.

Scoring Criteria
Network Upgrade Requirements: 40
Project Team Experience : 15
Financial Assessment: 15
Resource Assessment: 10
Environmental Assessment: 10
Community Acceptance: 10
Top score: 100

Time to be proactive, not reactive, about energy future

June 10, 2012 - 4:12am

by Rachel Brighton, Just Business

Protests against Nova Scotia Power are like water off a duck’s back.

Instead of dressing up and parading in front of corporate shareholders and executives in Halifax, angry ratepayers should pile into buses and tour Cumberland County to learn how citizens can take a real stake in the democratically governed production of green energy.

Some of them may be put off by the sight of the 15 tall wind turbines planted on the stark Tantramar marsh just on the Nova Scotia side of the New Brunswick border.

But that privately owned wind farm on private land does not indicate the full thrust of the region’s energy strategy, which is partly geared to attracting outside investment and very much aimed at building energy self-sufficiency.

Cumberland County should inspire municipalities and civic institutions in the way its public buildings, infrastructure and services are being powered with green energy, including solar, wind and — thanks to the flooded coal mines under Springhill — warm mine water.

A battery maker, a boiler maker, a plastics manufacturer and a pizza chain were among the first businesses to experiment with this geothermal heat from the mines, which has been used in Springhill for two decades and provides energy for heating, cooling and processing to 10 operations in a geothermal industrial park.

The Joggins Fossil Institute is powered by wind and solar, and at the new community centre in Springhill, underground warm water is converted into energy for heating, cooling and making ice for the arena.

The county has the province’s only regional energy office, a partnership that includes Cumberland County, the towns of Springhill and Parrsboro and the Cumberland Regional Economic Development Authority.

A regional energy strategy was developed with advice from local manufacturers, wineries, producers of blueberries and other agricultural products, the forestry sector, environmentalists, academics, the Nova Scotia Community College and Minas Basin Pulp and Power, which has a stake in the experimental stage of tidal power development in the Minas Channel.

Kings County, which has placed a hold on large-scale wind projects and is considering a moratorium on new wind farms while it figures out how to balance the interests of developers and residents, should marvel at what can happen when municipal governments are proactive rather than reactive in the renewable energy game.

Local governments are realizing they can gain a competitive edge if they have the right wind regime, the right regulations and a hold on natural assets, such as a natural supply of warm water underground or the prospect, as difficult as it seems, of harnessing tidal energy.

Public attention right now is fixed on the cost of power that is distributed through a provincial monopoly. The simplest and easiest way to avoid these costs is to generate alternative energy sources.

Municipalities can and should play a bigger role in energy generation to help us break our dependence on a monopolized, expensive, centrally operated power system.

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/105568-time-to-be-proactive-not-reactive-about-energy-future

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Ms Brighton is correct on many level - any investor will tell you a diversified portfolio is much more stable than investing in a single stock. There are some important things missing here, though.

Cumberland County is unique in having a variety of excellent resources available to it that others do not, not least geothermal and access to the biggest tides in the world. It is also the sunniest part of the province, so solar is a definite possibility as that technology moves apace. Oh yes, and we have wind too.

Of these renewables (in the absence of any large hydro project) wind energy is by far the most invasive to those nearby and for miles around. Municipalities have to understand that these energy generating sites cannot be located just anywhere. Rules have to be written to protect residents from these projects and developers from attracting such poor acceptance the entire industry gets bad press.

The Municipality of Cumberland County has definitely made great strides in supporting these renewables, but what Kings County has done is realise that people are part of the environment too. It is the residents who are the end user of the County's services and it is they who the county need to listen to and realise that if they are not happy they will either (a) react at election time, (b) not develop their properties, thus affecting its tax value or (c) simply move away.

The Municipalities can have their renewables and keep their residents happy at the same time, but it takes good planning guidelines that are not a cookie cutter approach but look at each case on its own merits. Yes, that takes more time but what is important: doing it fast or getting it right?

RFP for Renewables Released

The Nova Scotia Department of Energy has released the final version of the Request for Proposals (RFP) for 300 GWh renewable energy to be online by January 1st, 2015. http://nsrenewables.ca/request-proposals

This long overdue document has been delayed by protracted discussion between the prospective proponents, Nova Scotia Power (NSPI), the Renewable Energy Administrator (the REA) and the NS Utility and Review Board (UARB), mostly over the final version of the standard form for the Power Purchase Agreement (PPA). This was released May 25th, which then allowed for any final tweaks of the RFP.

Proponents now have less than three weeks to get thier proposals submitted to the REA. Submission deadline is June 27th.

Projects will be scored out of 100 points depending on their location within the province (40), project team experience(15), resource assessment (10), financial security (15), environmental assessment (EA) (10), community acceptance (10).

From the RFP: "All communication with respect to this RFP will be conducted through the NSRenewables website: http://nsrenewables.ca/competitive-bidding/renewable-electricity-administrator. Comments and questions regarding the RFP or PPA should be directed to REA@poweradvisoryllc.com."

NSP CEO defends raise

June 5, 2012 - 8:54pm

Joann Ablerstat, Business Reporter

Bennett says compensation came after rigorous review

Nova Scotia Power’s president and chief executive officer is defending the 23 per cent raise he received last year.

Rob Bennett told a Halifax business audience Tuesday that the utility’s executive compensation is about average compared with other Canadian companies.

“I know that people look at the reported executive ‘comp’ numbers and they may be concerned,” he said in response to an audience question. “But I can tell you that that compensation is subject to a myriad of reviews.”

Bennett’s total compensation last year reached $1.15 million, according to documents filed last month.

Ratepayers cover all of the base salaries and half of the incentives for four Nova Scotia Power executives, including Bennett.

The CEO said the utility’s board of directors sets compensation levels in consultation with experts and after a review of compensation trends nationally.

The top dogs at Emera Inc., Nova Scotia Power’s parent company, also saw their pay packets grow last year.

President and CEO Chris Huskilson received $2.99 million in total compensation, and vice-president Nancy Tower got $1.4 million.

The figures became public two days after Nova Scotia Power applied for a three per cent rate increase next year and another three per cent the year after.

Bennett said after his speech that the utility’s board uses “a very diligent process” to set executive compensation.

“I feel very fortunate to be able to be here in this province with my family, to work at a job that I really enjoy doing,” he told reporters. “And I’m well compensated — there’s no doubt about that.”

Bennett told the chamber of commerce luncheon that power rates are being driven up by the cost of adding more renewable electricity to the grid, coupled with the financial woes in the province’s pulp and paper industry.

“Other provinces are facing the same challenges that we face in terms of modernization of their grid, and change,” he said.

Bennett said the rate hikes would be even higher — 13 per cent over the next two years — if Nova Scotia Power didn’t have a plan to soften the impact of mill closures.

NewPage and Bowater Mersey used to contribute $45 million a year to the utility’s fixed costs but the amount is expected to be $3 million annually if the Point Tupper operation resumes.

“We’ve worked hard to reduce that rate ‘ask’ down to something that’s about equivalent to the rate of inflation,” Bennett said.

He mentioned the seasonable shutdown of two coal-fired units at Lingan and the recent elimination of 100 jobs through layoffs and attribution as examples of recent cost-cutting measures.

Opposition party leaders who attended the luncheon said they’re not buying Nova Scotia Power’s argument that it needs more money.

Stephen McNeil, leader of the official Opposition Liberals, said ending the utility’s monopoly would help lower energy costs.

“The only way Nova Scotians are going to see any kind of stability and any kind of relief when it comes to energy pricing is if we begin to allow competition in the market and allow other producers to come in and provide an opportunity to sell directly to customers,” he told reporters.

Progressive Conservative Leader Jamie Baillie said Premier Darrell Dexter should change the law to make affordability a priority when the provincial regulator — the Utility and Review Board — sets power rates.

“The way the power company makes money and the way its executive are paid is out of line with what Nova Scotians can afford,” Baillie said.

http://thechronicleherald.ca/business/103851-nsp-ceo-defends-raise

Clydesdale Ridge Wind plans to expand Dalhousie Mountain wind farm

June 4, 2012, 6:54pm

by Chris Lambie, Buusines Editor

Reuben Burge has plans to expand the Dalhousie Mountain wind farm by adding 28 turbines and generators on land located between Mount Thom, Pictou County, and Earltown, Colchester County.

Clydesdale Ridge Wind LP registered the 50-megawatt project for environmental assessment Monday, with plans to start construction in December and commission the facility within about a year.

“The environmental assessment process is very detailed,” Burge, who heads RMSenergy Ltd., said in a telephone interview from atop Dalhousie Mountain.

Planning work on the project has been going on for more than two years. Experts have examined everything from how it will affect the bat, bird and moose populations, to whether the site was home to early Scottish and English settlers. Historic Mi’kmaq use of the land was also part of the investigation.

“We certainly have spent a great deal of time making sure the quality is there,” said Burge, who declined to say how much all the studies have cost or put a price tag on the entire wind project.

The province is expected to call for bids for renewable electricity this month. Awards to provide green energy to Nova Scotia Power are slated for some time this summer.

“It’s a large financial commitment, I will say that, to make early on in the bidding stage,” Burge said of all the environmental planning work.

But he’s hoping taking that risk up front pays off. “It puts our project in a good position at the time bids are awarded.”

If it goes ahead, the project would provide a boost for the local economy.

“We’ll definitely have hundreds of employees during the construction period,” Burge said. “For approximately 18 months there will be over 100 people employed, in one form or another, whether it’s consultants or direct construction related or tower manufacturing.”

The turbine towers will be 80 metres tall.

“The Clydesdale Ridge Wind Farm Project will provide renewable power sufficient for 20,000 homes annually and have a positive effect on the environment through the displacement of burning fossil fuel,” according to documents prepared by Stantec Consulting Ltd.

“In light of both Canada’s and Nova Scotia’s commitment to reduce greenhouse gas emissions and invest in renewable energy, the Clydesdale Ridge Wind Farm Project will be an important component of Nova Scotia’s energy mix.”

Toronto’s Firelight Infrastructure Partners LP, which invests in North American renewable energy projects, including wind, hydro and solar, is a partner in the Clydesdale Ridge project. Firelight also partnered with Sprott Power Corp. on its Amherst wind project.

Firelight “is the majority owner” of the Clydesdale project, Burge said.

Environment Minister Sterling Belliveau has until July 24 to decide if the project can be granted conditional environmental assessment approval.

“No significant adverse residual environmental effects of the Clydesdale Ridge Wind Farm Project are predicted,” according to the Stantec report.

The project is slated to expand on the 34-turbine, 51-megawatt Dalhousie Mountain project operated by a subsidiary of RMSenergy Ltd.

http://thechronicleherald.ca/business/103582-clydesdale-ridge-wind-plans-to-expand-dalhousie-mountain-wind-farm

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