NOVA SCOTIA Power wants to hike residential power bills an extra $4 to cover the cost of introducing new energy-efficiency programs.
Hearings began Monday before the Nova Scotia Utility and Review Board into the power company’s plan to spend $41.9 million in 2011 on energy conservation programs for its customers.
These measures include: energy-saving light bulbs, expanding a small business lighting program and a $200 rebate on energy-efficient clothes washers.
The company argues that if customers reduce their electricity consumption, it will generate savings of more than $190 million because the utility will be burning less fuel to generate electricity.
"There is no cheaper, cleaner kilowatt hour than the one we don’t have to produce," said Nova Scotia Power vice-president Alan Richardson, in an opening statement Monday.
The proposed budget for 2011 on energy efficiency would increase to $41.9 million from $22.6 million in 2010.
Richardson said the utility is having trouble getting the message out to customers about the savings from energy conservation.
"Perhaps it is sign of our times, but the public discussion of conservation and energy efficiency seems to most often focus on the costs, with, in many cases, little or no mention of the benefits," said Richardson.
The vice-chairman of the board said Nova Scotia Power customers don’t know the benefits and should be told in an "understandable" way about the potential savings of the program, since they are footing the $41.9- million bill.
"Going green is good, and it’s necessary, but it’s not cheap. I think people should have a clear understanding of that, and that if they participate, they will see savings. It’s not just the environment that will be protected; it will actually save money at some point," Margaret Shears, the review board’s vice-chair, told Nova Scotia Power executives appearing at the hearing.
Richardson said the company still has "a long way to go" before customers really understand how good the deal will be for their pocketbook.
Nova Scotia’s consumer advocate John Merrick questioned the company about which programs are priorities and how they will be evaluated.
He said the energy conservation programs have a "socially beneficial goal" and may not be getting a rigorous examination.
"It’s easier to be for it, than against it," he suggested.
If Nova Scotia Power came before the board asking to spend $41 million on vegetation control, a new fleet of vehicles or enhancements to the pension plan, would the utility face tougher questions? he asked.
"Don’t you think that kind of use of money might attract more of a critical attention?"
Richardson said it may appear that way but the program offers a "strong business case" and must still be reviewed by the board and go before a public hearing.
Richardson admitted the utility wants to spend 3.5 per cent of the utility’s revenues, or $41.9 million, on energy conservation, which is among the highest rates in North America.
"If you think about what it is doing — replacing a power plant — it would make sense that it’s going to be significant. It has to be a significant expenditure if it is going to accomplish that goal," Richardson told the three-member panel hearing the case.
The utility is hoping that by 2020, electricity consumption in the province could be five per cent lower that it is today.
Fiona Traynor, of the Affordable Energy Coalition, pointed out that 50,000 renters in Nova Scotia are unable to take advantage of these programs, even though they fund the measures through their power bills.
John Aguinaga, Nova Scotia Power manager of conservation and energy, admitted renters only have access to using energy-efficient light bulbs, but the utility will try and overcome that barrier.
"It makes it very challenging to have a program that accommodates people that rent, (that) don’t own the devices that are using electricity, and yet are paying their electricity bill."
Later this year, the utility will transfer responsibility for implementing the new conservation programs to a new government agency called Efficiency Nova Scotia Corp.
The hearing resumes today in Halifax.
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