Proposed legislative changes in Nova Scotia are meant to soften the blow of what likely will still be a significant future increase in power bills.
Nova Scotia Power is currently before the provincial regulator and is asking for a general rate increase of nearly 14 per cent over the next two years.
Natural Resources Minister Tory Rushton says leaving aside fuel costs, the rate increase would be limited to 1.8 per cent over the next two years for any increases related to the utility’s operations and maintenance.
However, with rising fuel costs for coal-fired plants, Rushton admits that any final decision by the utility and review board will likely still see an increase that is closer to the utility’s original rate increase application.
Nova Scotia’s privately owned utility is threatening that the government’s plans to cap rate hikes, aside from fuel costs, will mean it can’t meet reliability standards.
Nova Scotia Power Chief executive Peter Gregg has put out a release claiming that the utility had plans to spend 500-million dollars on various improvements to the grid.
However, he says the cap of 1.8 per cent imposed by legislation will mean there are “serious risks” to the utility’s ability to serve customers reliably, including during severe storms like Fiona.
He also says the cap may mean the utility can’t make investments to ensure “a sustainable energy future,” and bring more renewables online.
An initial estimate suggests post-tropical storm Fiona was the most costly extreme weather event in Atlantic Canada’s history in terms of insured damages.
The Insurance Bureau of Canada says an estimate shows Fiona caused 660-million dollars in insured damage.
But the bureau says the overwhelming majority of disaster costs will be borne by government because many of those affected were in high-risk flood areas where residential flood insurance is not available.
It says the storm also washed at least 20 homes into the ocean.
Mere days into the fall sitting of the Nova Scotia legislature the Progressive Conservative government has extended house hours until midnight for the next week.
While in opposition, Premier Tim Houston was highly critical of a tactic that had been used by the previous Liberal government.
But, Houston told reporters Tuesday that his government will set the hours it thinks are appropriate to get its work done.
Liberal Leader Zach Churchill says the much longer hours mean the government wants to wrap up the sitting in a short period of time.
Teaching assistants at Dalhousie University in Halifax are on strike.
The strike also affects instructors, markers and demonstrators who are members of the Canadian Union of Public Employees.
The campus will remain open and most classes will continue, though classes taught by unionized instructors will be suspended for the duration of the strike.
