Utility wants $2 monthly to fund energy-efficiency programs
Nova Scotia Power has failed to prove that hiking power rates $2 a month to cover the costs of its proposed energy-efficiency programs is good use of customers’ money, says provincial consumer advocate John Merrick.
The power company hasn’t explained which energy conservation programs are a priority and how they will be evaluated, argues Merrick in a final submission to the Nova Scotia Utility and Review Board recently.
The board held hearings last month into Nova Scotia Power’s request to spend $41.9 million in 2011 on energy conservation programs for its customers. The board has reserved its decision.
But all parties involved in the hearing were requested to make final submissions by April 30.
These conservation measures include energy-saving light bulbs, expanding a small business lighting program and $200 rebates on energy-efficient clothes washers.
Merrick argues if the utility was looking to spend the same amount for a new computer system, the board would look carefully at the request. However, energy-efficiency programs are not met with the same scrutiny, as everyone is in favour of reducing electricity consumption.
He says there’s the potential that $41.9 million in expenditures "will not get the same rigorous examination to ensure they will realistically achieve their objectives and will give value to the ratepayers for the additional money they must pay in rates."
Before any new conservation programs are approved in the future, Merrick argues there should be objectives and prioritization.
He also pointed out that renters and the poor have a hard time accessing energy-efficiency programs, even though they pay for the plans through their power bills.
Limiting availability of the programs "negatively impacts the success of the programs," and raises questions about it being "equitable," says Merrick.
Nova Scotia Power 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. The proposed budget for 2011 on energy efficiency would increase to $41.9 million from $22.6 million in 2010.
The company argues that if customers reduce their electricity consumption it would generate savings of more than $190 million in fuel costs for the utility.
It 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 paying their power bills.
"This means that some of the poorest Nova Scotians, the majority of whom are renters, are seeing energy rates increase, with limited to no access to DSM (demand-side management) programming," she argued in a final submission.
Meanwhile, some 36 large industrial customers are upset with the cost of paying for these programs and want it reduced.
These customers want to pay $900,000 for the programs, not almost $1.5 million, as proposed by Nova Scotia Power, says the group’s lawyer Nancy Rubin.
She argues many of these customers have already taken steps to reduce their energy costs and would not take advantage of these proposed programs.
For example, she argues Nova Scotia Power has asked these customers to pay $310,000 for programs under new construction, but none of these customers would use the program, nor has the utility provided any evidence they would.
The utility will transfer the implementation of the new conservation programs to a new government agency called Efficiency Nova Scotia Corp. later this year.
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