N.S. power rates likely going up: UARB

Residential Nova Scotia Power customers could see their power bills increase by as much as 9.8 per cent in January.

Nova Scotia Power wants to raise its residential rates by 7.5 per cent Jan. 1.

That's on top of a 2.3 per cent increase to cover the cost of energy conservation programs.

The Emera-owned company filed documents Friday with the Nova Scotia Utility andReview Boardasking for an additional one per cent, above an earlier request to hike rates by 6.5 per cent.

Industrial customers could see hikes of 12.5 per cent, while commercial users might face increases of 9.5 per cent.

The company says the cost of coal has shot up $13 million more than forecast.

Cleaner coal is required to meet the province's emission controls, but it costs more, the company said.

It's anticipatedthe provincial regulator will approve the rate hike next month.

It would be Nova Scotia Power'ssixth rate increase in nine years.

A 59-pagereport from the UARB suggests commercial customers will likely see their bills increase by 8.6 per cent in 2011, while industrial users are likely looking at in increase of about 11.3 per cent.

Power bills for residential customers have risenby 34 per cent since 2002.

The latest hike would cause major financial problems for places such as the Sackville Community Arena, saidAllan Smith, who helps run the rink. He saidthey are trying to cut costs wherever possible.

"We're doing what we can but Nova Scotia Power still gets their rate increases and we still get rates going up," he said.

That could force the arena to raise ice fees.

"We'd charge the people who use the ice. It's the only way we could pay for it," he said.

The average Nova Scotia household pays $1,464 a year for power. The total rate increase would boost that by $143.