Wind farm winners announced

August 2, 2012 - 11:01am BY JOANN ALBERSTAT BUSINESS REPORTER

Two of Nova Scotia’s leading family businesses are teaming up to build what amounts to Nova Scotia’s largest wind farm.

Oxford Frozen Foods, controlled by the Braggs, and Minas Basin Pulp and Power, controlled by the Jodreys, each got the green light Thursday to build about $200 million in wind projects on a massive Lunenburg County site.

The two ventures, which are called South Canoe Wind, are among three energy projects awarded contracts by the province’s renewable electricity administrator.

The third winner is a roughly $25-million wind farm near Canso that is led by the Municipality of the District of Guysborough.

Nova Scotia Power is a minority partner in all three projects. Provincial renewable energy rules allow the utility to own up to 49 per cent of projects proposed by independent power producers.

The three wind farms are expected to start producing electricity for the grid starting in January 2015.

South Canoe includes a 78-megawatt project led by Oxford, as well as a neighbouring 24-megawatt development led by Minas Basin.

The two are on 6,000 hectares of land in a non-residential area between Chester and Windsor. Most of the site is owned by the Hantsport pulp and power company, also in the hydroelectric business.

“We’re ecstatic about this,” Scott Travers, Minas Basin’s president and chief executive officer, said in an interview.

“It’s great to be building one of the biggest wind farms in Nova Scotia.”

A total of 30 to 50 turbines will be on the sites, depending on turbine size.

Rick Cecchetto, chief financial officer of the Bragg Group of Companies, said the two wind farms plan to work together and share some infrastructure.

“We’re excited to be in the business. We think it’s going to be a nice addition to what Oxford Frozen Foods does. It’s really going to help our reputation with our food customers.”

This is also the first foray into large-scale wind for the Guysborough municipality.

Its 13.8-megawatt project, called Sable Wind, will have six turbines. The development will be on 137 hectares of municipal land.

“As an investment for the municipality, I think it’s a really smart one for us,” said Warden Lloyd Hines.

The winning projects beat out 16 others that were submitted to the independent administrator, Power Advisory LLC, a Massachusetts consulting firm.

Power Advisory president John Dalton said he knows other bidders won’t be happy that all three winning projects involve Nova Scotia Power.

But the contract awards represent the best value for ratepayers, the administrator said.

The average price for the electricity in the contracts is $70 to $75 per megawatt hour.

Dalton said that’s “meaningfully lower” than previous contracts the utility has with independent producers.

“We’ve benefited from lower costs of wind turbines in general and a very competitive process.”

Some developers expressed concern while tender rules were being developed Nova Scotia Power had an unfair advantage over their projects.

One losing bidder said the independent administrator has been fair and objective in his dealings with developers.

But Dan Roscoe, chief operating officer of Dartmouth’s Scotian WindFields, also said independent producers will be talking to the province about ways of improving the process next time.

“If Nova Scotia Power is underwriting all these projects, are they really independent? We feel a discussion will need to be had (about) whether or not there’s a value to Nova Scotians in having 100 per cent independent power producers rather than semi-independent power producers.”

Scotian had proposed a 40-megawatt project in Renfrew, Hants County, in partnership with WEB Wind Energy North America.

Nova Scotia Power said the decision process was fair.

“The winners are all well-established Nova Scotia entities with deep roots in their communities,” said utility spokeswoman Neera Ritcey.

“Their involvement will ensure the benefits are flowing locally. We are proud to have partnered with them and look forward to our work ahead.”

Energy Minister Charlie Parker said the province isn’t planning to approve any other large-scale wind farms soon.

The 115 megawatts of wind energy being added to the grid this time will bring the system close to the 500-megawatt threshold, he said in a news release.

“This is near the technical limit of the amount that can be integrated into the province’s electricity grid,” the release said.

http://thechronicleherald.ca/business/123220-wind-farm-winners-announced

New Renewable Projects Provide Jobs and Investment

NS Dept of Energy

August 2, 2012 10:19 AM

---

Nova Scotia is moving ahead with three commercial-scale wind-energy projects that will create good jobs and $200 million of new investment.

Energy Minister Charlie Parker said the projects, in Lunenburg and Guysborough counties, will help stabilize electricity prices in Nova Scotia and benefit the environment.

"These large wind projects will result in $200 million in private sector investments that will, in turn, help us meet our cleaner energy agenda," said Mr. Parker.

The projects announced today, Aug. 2, by the province's renewable electricity administrator, Power Advisory, are:
-- a 78 megawatt South Canoe Wind Project between Chester and Windsor, led by Oxford Frozen Foods
-- a 24 megawatt South Canoe Wind Project in Lunenburg County, led by Minas Paper Pulp and Power
-- a 13.8 megawatt Sable Wind Project near Canso, led by the Municipality of the District of Guysborough

"Nova Scotia has one of the best wind regimes in North America," said Mr. Parker. "The wind itself is free, and the cost of building wind farms can be spread over many years. The result is a stabilizing effect on electricity rates."

The selected projects represented the most cost-effective offers. Their average purchase price was in the mid-$70s per MWh, lower than those in the 2007 call for bids. Nova Scotia Power is a minority investor in each of the projects.

Collectively, these projects are expected to bring total wind energy close to the 500 MW wind threshold by 2015. This is near the technical limit of the amount that can be integrated into the province's electricity grid, according to the 2008 Nova Scotia Wind Integration Study by Hatch Energy. Consequently, the province does not expect to issue more request for proposals for large-scale wind projects in the near future.

The renewable electricity administrator was appointed by the province to call for bids, evaluate bid submissions and select winning projects based on which projects provide the best value for ratepayers.

The process also completes an objective of the province's renewable electricity plan to determine if the utility or independent power producers could build the lowest-cost renewables for the province. The competition indicates a partnership model produces the best results.

The three large-wind projects will help the province reach its renewable energy plan target of 25 per cent of the province's electricity needs met by renewable sources by 2015. The province also committed to achieving a 40 per cent renewable electricity target by 2020.

Wind energy development is one aspect of the renewable electricity plan, which focuses on diversifying the province's energy mix and meeting federal and provincial environmental targets. Other elements include tidal energy, natural gas and hydroelectricity from Lower Churchill.

http://www.gov.ns.ca/news/details.asp?id=20120802003

Holding our Breath

Well, the proponents heard yesterday which of the 19 proposals are winners. The public will officially be informed in couple of weeks, but we are expecting some flapping gums before that. Meanwhile, we hold our breath waiting for any news.

We know that in Pugwash there has been some last minute wheeling and dealing. There have been attempts to purchase land in the middle of the project that was bought four years ago with the explicit purpose of avoiding having turbines on it. An offer of $1000/acre for half cut off land sound a little desperate.

A sad little property at the end of the Miller Road has been purchased by the proponent - to what end we're not quite sure. What he says its for and its actual purpose would be are likely very different.

We know that their field workers were attempting to home in on final turbine locations at the very last minute. This is a mandatory step for the RFP. Despite the fact this has been a very dry year, wetlands that are to be avoided are still clearly identifiable.

A real big stumbling block was the anemometer - or lack thereof. RFP scoring improves with multiple wind monitoring towers. This project had one, short tower, a little outside of the project footprint. Not a good score. The only wind data used in the EA came from Truro!!

The Environmental Assessment (EA) had been submitted, which would score well. This is not fair and has to be addressed for next time. Having an poorly executed, incomplete EA scores just as well as a good one and better than a really good one that has not been submitted yet. Not fair.

Menawhile ..... Health Canada has announced it will conduct a study on health effects of wind turbines. It is a little concerning that the sites have already been chosen, but we have to trust that the Feds will conduct everying fairly and with transparency. Hmmm ....

.... so you would think that, if the Feds finally realize that there is enough smoke to investigate the fire, that any projects planned anywhere near any populated areas would be put on hold. To carry on building while that very type of site is being investigated for its potential to make people sick would be reckless. But I supposed there are people who would rather risk the ire of the locals, Feds and everyone inbetween, and go "ooops, my bad" than not grasp at any opportunity to make a dollar off the backs of local residents and local property owners.

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!

~~~

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

~~~~

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

~~~~~~~~~~~

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

GSPA prepares to fight wind farm using Minister's conditional approval

PUGWASH, NS, March 28, 2012 /CNW/ -

After receiving more than two hundred comments from concerned Pugwash residents, Minister Sterling Belliveau has placed over thirty conditions on the approval of the Pugwash Wind Farm environmental assessment (EA) that must be met before construction could be contemplated. In addition to meeting these conditions, the Pugwash wind farm project would also need to be successful in the upcoming request for proposal (RFP) process providing 300MW renewable energy to Nova Scotia Power.

"Frankly, we are not surprised at all that the environmental assessment was approved, they always are, but we are heartened by the fact that the Minister has set these conditions. This makes the project extraordinarily difficult for the proponent to successfully develop," said Lisa Betts, Chair of the Gulf Shore Preservation Association. "The clock begins ticking today on a two year deadline to complete more than thirty tasks set out by the Minister that the proponent has not met in five years of trying."

One condition, for example, requires the proponent to keep wind turbine locations more than 30 metres from wetlands and water courses, which could eliminate more than 40% of the proponent's existing locations. Other conditions requires the proponent to conduct additional fieldwork relating to birds and bats, while avoiding specific species of flora and fauna during site selection. The proponent will also be required to create a community advisory committee, soliciting involvement of members of the general public in that process.

"Hundreds of residents expressed serious concerns during the EA comment period. These are educated, well read individuals who did their research before making their comments. None of these people is prepared to just let this happen without continued and sustained opposition. There are still a number of regulatory hurdles for the proponent to complete if, and only if, they are even able to develop a viable project with all of Minister Belliveau's conditions," added Betts.

http://www.newswire.ca/en/story/945333/gspa-prepares-to-fight-wind-farm-using-minister-s-conditional-approval

Plan for 12 turbines in Pugwash area gets environmental OK

Bill Power

Business Reporter

March 27th, 2012

An $85-million wind farm proposed for the Pugwash area received clearance from the provincial Environment Department on Tuesday.

Environmental approval of the project basically gives a green light to North Cumberland Wind Farm LP to proceed with the construction in 2013 of 12 turbines capable of generating 32 megawatts of electricity.

“I have carefully reviewed the application and I am confident there are appropriate measures in place to protect the environment and public health,” Environment Minister Stirling Belliveau said in a news release.

Opposition to the project has been intense, even drawing criticism from entertainer Anne Murray, who has a summer home near the project, which is located about two kilometres from the Cumberland County village.

A local organization, the Gulf Shore Preservation Association, has led the opposition which has “certainly been substantial and consistent right from the beginning,” association chairwoman Lisa Betts said. “We are well organized and will not take this lying down.”

Betts said few people in Pugwash will be surprised that the province approved the project and most will be interested in the stipulations placed on the developer.

“We’ll be responding more fully to the announcement very soon,” she said.

Local supporters of the project, including some land owners whose properties will host turbines, have argued the project will help the province meet its green energy objectives.

The 33-megawatt wind farm will generate enough electricity to power about 10,000 homes.

However, it must still go through a competitive biding process under the province’s renewable electricity administrator.

“Wind farms are an important part of government’s renewable energy goals and will help us reduce our reliance on coal,” Belliveau said in the release.

The developer must monitor and mitigate potential impact on wildlife and must maintain limits on noise and proximity to homes in the area. There is also a requirement to create controls for erosion and sedimentation and to conduct a monitoring program for surface water.

A community liaison committee to address community concerns must also be established. In addition, there is a requirement for the developer to complete a Mi’kmaq ecological knowledge study.

The site must also be restored to its original state when it is decommissioned.

Nova Scotia’s 2010 Renewable Electricity Plan requires a reduction of electrical generation from coal to 40 per cent by 2020. The government said electricity from coal currently accounts for 57 per cent of the province’s energy mix.

http://thechronicleherald.ca/business/78065-plan-12-turbines-pugwash-area-gets-environmental-ok

Catching up

Been a tad busy lately. A catch up and review of recent events should be here in the next few days.

UARB may hold full hearing on power deal

Joann Alberstat

March 22nd 2012

The Nova Scotia Utility and Review Board may change the way it handles a proposed provincial plan to get more renewable electricity from independent producers because of concerns raised by Nova Scotia Power.

The provincial regulator said Thursday it could hold a full hearing on a draft power purchase agreement, rather than make a decision based on written evidence.

“It is apparent to the board, given the comments that were received yesterday, including those of Nova Scotia Power, that an abbreviated paper process the board had put in place to review this matter may not be adequate,” Nancy McNeil, regulatory affairs officer, wrote in a letter to the electrical utility Thursday.

In a filing Wednesday, Nova Scotia Power said it would not adopt the proposed agreement unless the regulator orders it to do so. The company said it’s concerned the draft terms favour independent producers at the expense of ratepayers.

“In light of our concerns ..., N.S. Power is not prepared to execute the proposed standard form (power purchase agreement), unless directed to do so by the UARB,” says a letter signed by company lawyer Nicole Godbout.

If it’s directed to accept the proposed terms, Nova Scotia Power said it will ask the review board to confirm that procuring more renewable electricity is “prudent” and that the utility won’t be held responsible for any additional costs or problems the approved projects may encounter.

The regulator responded by saying it will decide the next steps after the province’s renewable electricity administrator makes its own filing, which is due April 4.

The administrator, Power Advisory LLC, submitted the proposed agreement to the review board last month and had expected a ruling by April 25. That would pave the way for developers to submit their bids by May.

Several wind projects are in the planning stages across the province but some developers have said they expect no more than three or four of them to be selected.

The provincially appointed administrator, a Massachusetts-based consultant, is expected to announce the winning bidders in mid-July.

The province wants to obtain an additional 300 gigawatt hours of renewable electricity from independent producers, starting Jan. 1, 2015. That is equal to about 100 megawatts of wind energy.

The last time the province issued a tender call for renewable electricity, which occurred in 2007, the power purchase agreement was developed by Nova Scotia Power.

The utility said the proposed terms this time around are “substantially changed” from those approved by the review board five years ago.

Nova Scotia Power outlined several parts of the agreement it said could result in extra costs to ratepayers and require them too shoulder additional risk if a project runs into difficulty.

Some wind farm developers also wrote the review board this week suggesting further changes to the draft agreement.

Montreal-based Renewable Energy Systems Canada Inc., which is planning a wind farm in the Wentworth area, told the regulator it participated in recent consultations by the administrator and is “generally satisfied” with the outcome.

“The proposed contract properly allocates the risks of the contemplated projects to the parties that can best manage them, providing for the best outcome to the customer,” writes Nicolas Muszynski, RES Canada’s senior development manager.

http://thechronicleherald.ca/business/76468-urb-may-hold-full-hearing-power-deal

Company backing off wind turbine proposal for Braeshore

New Glasgow News

Published on February 28, 2012

PICTOU – Residents of Braeshore opposed to the location of a wind turbine in their area can breathe a sigh of relief.

Andy MacCallum with Wind Prospects Inc. said the company will be “stepping back” on its ComFit application for the construction of one to two wind turbines in the Braeshore area. The towers would have the capacity of 1.6 megawatts and be located on a piece of property formerly owned by Hughie MacDonald.

“We will probably not pursue it,” he said during an interview with The News Tuesday. “We will be leaving the application in, but we are pulling back.”

The proposal would see the wind field developed through the ComFit program, which requires 25 people from within the county to sign up as shareholders for the project. The remaining shareholders can come from other parts of the province.

During a public meeting in early February, MacCallum outlined several reasons why the development would be positive for the community, including decreasing the use of coal at the Trenton Generating Station.

Wind Prospects Inc.’s application was met with opposition from some Braeshore residents who are concerned about noise and health problems in relation to having a wind turbine near their homes.

They had circulated a petition and gathered signatures against the development and recently presented it to Pictou West MLA Charlie Parker, who is also the province’s energy minister.

MacCallum said Wind Prospects was aware of the opposition to the development and was working with the community to find a solution. He said the project does have some support, but he acknowledged the “vocal minority” was effective in making its point.

He added there is also another company in the Pictou County area that has a ComFit proposal in for wind turbines in the Caribou area and both would be competing for the same amount of space on the grid.

MacCallum said his company has about 10 other ComFit applications in with the government it will be pursuing in the future.

Susan Moland, a Braeshore resident who helped spearhead the petition signing, said community members recently met with county council asking for a larger setback for wind turbines. The setback is currently 600 metres.

“We are really feeling like we are waiting for the other shoe to drop,” she said. “Although Wind Prospects may not be interested, there is nothing stopping another company from coming in.”

She said a larger setback would make it more difficult for companies to develop wind turnbines in the area because of the configuration of homes in the Braeshore area.

http://www.ngnews.ca/News/Local/2012-02-28/article-2910876/Company-backi

Pugwash wind farm and The Rick Mercer Report

From CBC's The Rick Mercer Report seen on CBC Tuesday February 28th, 2012

http://www.youtube.com/mercerreport#p/search/1/giOcFDDWmtI

Wind farm fight goes online

Published on March 1, 2012

PUGWASH – The fight against a proposed wind farm near the Gulf Shore has gone online.

The Gulf Shore Preservation Association has launched the website http://protectpugwash.org to makes contacting Premier Darrell Dexter, cabinet ministers and local representatives regarding the wind farm much easier.

The website shares the area’s history, articulates local residents’ concerns and allows citizens to take action by writing their own comments to government.

“We feel it is very important that members of our association and those of the community are being heard. We can’t say for certain the government is actually listening, but the more of us involved and the louder we get, the harder we will be to ignore,” association president Lisa Betts said. “There are very serious concerns with this project and we believe it is the obligation of concerned residents to take action.”

The association is calling on the province to stop the project that could see up to 12 turbines erected near the Irishtown Road.

Atlantic Wind Farms has submitted its environmental assessment to the province.

The group of residents fighting the project wants the province to throw out the assessment saying it’s full of deficiencies.

The company says it has listened to residents concerns since a previous project was abandoned several years ago. The latest project is proposing fewer turbines, farther away from the shoreline and homes and cottages.

http://www.cumberlandnewsnow.com/News/Local/2012-03-01/article-2912864/Wind-farm-fight-goes-online/

Awarding of wind farm deals delayed until July

February 27, 2012 - 8:41pm

Joann Alberstat, Business Reporter

Green energy developers will find out in mid-July whether they have been awarded contracts to get their wind farms off the ground.

The province’s renewable electricity administrator set out the revised timeline in a regulatory filing Friday with the provincial Utility and Review Board.

John Dalton, president of Power Advisory LLC, said Monday the timeline was changed because final revisions to the proposed tendering process took longer than expected.

“We started the process back in July in terms of working with stakeholders and have for the last six to seven months been working with them to get their comments and feedback,” Dalton said from Boston.

This is the second time the Massachusetts consultant, appointed by the Energy Department last year, has changed the timeline for awarding contracts. The independent administrator had planned to award contracts in April and then June.

The administrator is asking the review board to approve a draft power purchase agreement, which will be used to oversee the development of energy projects.

The draft agreement is based on previous contracts awarded by Nova Scotia Power but has been updated to reflect industry best practice and similar recent procurements across Canada, the filing said.

Dalton said board officials have suggested a two-month timeline for making a decision. A ruling is expected by April 25, paving the way for developers to submit their bids in May.

One recent change in the process involves the scoring system for evaluating projects.

The previous plan would have penalized projects in southwestern Nova Scotia and Cape Breton, where there is less room on the grid. But the latest proposal would allow developers in those two areas to score points by offering to pay for the necessary network upgrades.

Dalton said he doesn’t know whether the proposal will be approved because such costs are normally paid by Nova Scotia Power customers.

“We felt it was important to be as inclusive as possible. We think we get that same net result by providing some additional flexibility. But the ultimate decision is the board’s.”

The province’s consumer advocate has questioned the plan to build more wind farms, saying they are not needed to meet renewable energy targets.

The Energy Department has said it will award contracts for an additional 300 gigawatt hours of renewable electricity, which equals about 100 megawatts of wind power, anyway.

http://thechronicleherald.ca/business/67801-awarding-wind-farm-deals-delayed-until-july

Pugwash - the village not so peaceful

Dave MacGrath

Original (unedited) submission to Chronicle Herald

Published in Opinions 24th February 2012

For fifty years Pugwash, Nova Scotia has been known around the world for its dedication in making the world a more peaceful place. There is now a very large problem within the community that certainly needs the help of our government officials. Perhaps the most important of these would be the Department of Environment and the Department of Tourism.

The Gulf Shore area of Pugwash is one of the fastest growing areas in Cumberland County. The majority of the residents who moved here from away did so because they wanted to live in a peaceful place. Pugwash and the Gulf Shore Road area has residents from all around the world who find it a great place to live, with clean air, very little crime, wonderful ocean activities and friendly people who work together for the common good of this community. A few years ago the residents thought it would be a good idea to build a curling rink. They held some meetings, everyone joined in and the rink was built using volunteers without one hitch or argument and it is now the winter focal point for the community. It just shows what can be done with a joint effort. We are a successful area but the depth of our success is not deep and the future of this area and village is "at risk".

Unfortunately, "The Atlantic Wind Power Corporation" has leased land from several residents in the area and plan to erect windmills on that leased land which is in the middle of this pristine area. The people who came here from away and spent there life savings on their retirement homes on the Gulf Shore will be right in the middle of this if it goes ahead. According to the most recent census the Gulf Shore area is one of the few rural places in Nova Scotia which is growing in numbers, it is helping to keep Pugwash a viable village.

A study in Ontario which was shown on CBC stated property values in a windmill area will depreciate from 20% to 40 % . These wind mills have a life expectancy of nineteen years and it is the land owner’s responsibility to put the land back to its original condition which will cost an estimated forty thousand dollars per windmill. In the mining industry a reclamation bond must be posted by the land owner if the status of the land is changed. Is it really worth all the aggravation and dissension to lease to The Atlantic Wind Power Corporation?

Pugwash is a beautiful place and I love living here. The landscape, beaches and serene skyline is what invites people to come live here, I would hate to see our tourism, and the people who have moved into the area, suffer. We are on a slippery slope. Nobody is against wind power, what they are against is ruining a beautiful residential area with windmills that are 350 feet high. By the way, what is wrong with the Cobequid Pass area? Lots of wind there and nobody would suffer if they covered the mountain with them.

My question to these windmill proponents; my politicians, federally, provincially and municipally, is simple:

"Would you after reading the CBC article, gladly accept a windmill for which you have no financial reimbursement, within 600 meters of your home? " A simple "Yes" or "No"

http://www.cbc.ca/news/canada/story/2011/09/30/ontario-wind-power-property-values.html

Dave McGrath

http://thechronicleherald.ca/opinion/66966-pugwash-not-so-peaceful-village

Minister: Pugwash wind farm assessment OK

Brian Mendel

February 24, 2012 - 4:31am

Community group says data inaccurate, incomplete

Despite calls to do so, the province’s environment minister says he won’t reject an environmental assessment for a wind farm planned for the Pugwash area.

"That’s not going to happen," Sterling Belliveau said Wednesday while in his constituency.

"There is a process in place and we see that unfolding as (with) any other project that’s similar."

Earlier this month, members of the Gulf Shore Preservation Association urged Belliveau to reject an environmental assessment prepared for Pugwash Wind Farm Inc. because they claimed the company was using data collected for public consultations five years ago. The group says that data is now inaccurate and incomplete.

In a news release issued earlier this week, the association said the community opposes the project, which would see 11 to 12 turbines, generating up to 33 megawatts of electricity, built on a site about two kilometres east of Pugwash.

International singing star Anne Murray, who has a summer home in the area, has also called on the province to stop the proposed wind farm.

Belliveau said the time is now for people to have their say on the project.

"There is a window of opportunity for the public to submit their presentations," Belliveau said. "We’re going through that now, that 30-day window.

"We think the process is right and it’s there for all . . . Nova Scotians to have input. We have great confidence in that particular process."

http://thechronicleherald.ca/novascotia/66574-minister-pugwash-wind-farm-assessment-ok

Reject Pugwash Wind Farm EA Over Shoddy Consultation

PRESS RELEASE

Reject Pugwash Wind Farm EA Over Shoddy Consultation: Gulf Shore Preservation Association

Pugwash - Minister Sterling Belliveau has received a letter from the Gulf Shore Preservation Association outlining concerns with the quality of community consultation provided as part of the Pugwash Wind Farm Environmental Assessment.

“The Minister is being asked to believe public consultations that occurred five years ago regarding an aborted wind project proposed by the same developer constitutes consultation on the current proposal. He is also being asked to accept that native communities do not deserve to be consulted before Environmental Assessments are complete,” said Lisa Betts, Chair of the Gulf Shore Preservation Association.

In the consultation chapter of the Pugwash Wind Farm Environmental Assessment the proponent admits to extensive, demonstrated and prolonged community opposition to this latest incarnation of the project aborted five years ago. In addition, by submitting the Environmental Assessment before the Mi’kmaq Ecological Study (MEKS) is complete, the proponent is asking the minister to devalue the rights of First Nations people to be consulted.

“These are serious issues that the Minister of the Environment must address if Environmental Assessments in Nova Scotia are going to be worth the paper they are written on.” Said Lisa Betts “We do not see how in good conscience or in following Nova Scotia environmental requirements, the Minister can deem this project worthy of approval.”

Lisa Betts

Chair
Gulf Shore Preservation Association

~~~~~~~~~~~~~~~~

Assessment of Pugwash Wind Farm Environmental Assessment: Consultation Section (Chapter Five)

Minister Belliveau,

On behalf of concerned residents of Pugwash, I wish to make you aware of a number of issues residents have with the accuracy of the Pugwash Wind Farm Environmental Assessment. While your ministry has determined the document to be complete and ready for a decision, members of the community remain puzzled as to how that is possible after having reviewed the text.

It is our hope that you will recognize that this Environmental Assessment is lacking and not worthy of approval.

One of the largest issues citizens identified when reviewing the Environmental Assessment document is that it isn’t a single Environmental Assessment about a single proposal. The proponent has hobbled together research from an aborted attempt at a project in Pugwash in 2006 and re-packaged it into the current proposal, such as it is.

When reviewing what the proponent has determined to be the ‘consultation’ document for this project, there is a clear acknowledgement that the community has been and remains overwhelmingly opposed to the project.

Further, the Gulf Shore Preservation Association (GSPA) has audio evidence that demonstrates the proponent’s claims about what occurred at the August, 2010 consultation described in section 5.3 (page 66) are simply inaccurate. Residents did not lose interest when the presentation equipment failed. To the contrary. more than an hour of questions were asked by the audience, after which a remarkable degree of opposition to the project remained.

With the proponent acknowledging long standing and intensifying opposition to either proposal for a wind project, how is it that the government can still believe that this project is in the best interest of the community? Do citizens matter at all in this process to your Ministry?

Why is your Ministry allowing a proponent to re-use five year old materials that were prepared for a distinctly different, aborted project to skirt around doing their homework on the present project?

I would respectfully request that in your capacity as Minister of the Environment you reject the Environmental Assessment that has been submitted for the Pugwash Wind Farm on the grounds that the document is both inaccurate and incomplete.

Sincerely,
Lisa Betts
Chair
Gulf Shore Preservation Association