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