July 22, 2010

Targets not to blame for rate hike

Next month, Nova Scotia Power will file its evidence on its estimat­ed fuel costs for 2011 to the Utility and Review Board. NSP must then put all the evidence on the table for its claim that a hefty hike in power rates (from 12 to 18 per cent) is warranted and unavoid­able. All facts related to increased fuel costs will then be known.

But in the meantime, the public relations offensive has been launched: environmental stan­dards are behind the increase and emissions standards must be relaxed to provide rate relief. The NDP government and others seem to be willing to carry that ball.

In a July 20 editorial (“Emis­sions and rate hike: Give pace a chance"), this newspaper over­simplified NSP’s rate case to an incorrect equation: this proposed double-digit increase is based on government regulations to reduce mercury emissions overnight.

The reality is more complex and reveals a lot about the politics of energy in Nova Scotia.

Regulations to reduce sulfur dioxide have been in place for almost a decade. Nova Scotia Power has been working on a mercury abatement program for several years in advance of regu­lations to reduce that heavy metal. In the editorial, the writer stated “a sustainable plan to re­duce emissions and to shift to cleaner energy is one that pro­ceeds at a manageable pace and that avoids price shocks that damage the economy and provoke public resistance."

Emissions standards were set for the good of all Nova Scotians … and unanimously supported by all parties in the legislature. Re­ducing sulphur dioxide and mer­cury makes sense. What doesn’t make sense is simplifying the debate. The goal must be a sus­tainable, stable energy environ­ment in Nova Scotia. This requires vision, both on the part of Nova Scotia Power and government.

There has been an attempt to convince people who pay power bills that the rate increase is solely a response to heightened emis­sions standards. In fact, most of the increase is due to higher costs of coal and other fossil fuels used to make electricity in our prov­ince. Using fuels with less mercu­ry is a contributing factor, but not the main reason for the increase.

Energy issues are not simple.

And solutions are not inexpensive. What is required is construc­tive, immediate attempts by this government to create an electricity transmission corridor which will link Nova Scotia with its Atlantic neighbours. We need to be able to access electricity from Newfound­land’s Lower Churchill Hydro project, from wind energy in P.E.I. and our own renewable resources. It will allow each province to benefit from the cleaner energy solutions being developed by its neighbours and provide us with price stability in the long term.

Photo ops and memorandums of understanding should not be confused with action on this im­portant issue.

Stephen McNeil is leader of the Liberal Party of Nova Scotia.

Source: The Chronicle Herald online, Letters and Feedback, Thursday, July 22, 2010.

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