Nova Scotia Power has to meet tough new standards as part of energy plan

A new 25-year electricity plan unveiled by the Nova Scotia government Monday lays out how the province intendsto create a sustainable power system and includes new performance standards for Nova Scotia Power.

The standards outlined in the planinclude penalties of up to $1 million if the utility does not measure up in areas of reliability, storm response and customer service.

The province intends to pass legislation this fall that will set a framework for the standards, whichwill guide the Nova ScotiaUtility and Review Boardas it enforces the new rules.

The legislation is supposed to ensure "predictable, stable"power rates for three years. However, even though the Liberals promised a power-rate cutduring the 2013 provincial election, the plan does not include lower rates.

"Futurepower bills may see increases, but they will beminimal," Energy Minister Michel Samson said Monday.

But Samson didn't completely eliminate the possibility of reduced rates in the near future.

"For the first time we and Nova ScotiaPower are talking about a possible reduction in residential rates for 2016," he said.

'Feeble attempt' to be tough on NSP

Opposition leaderJamieBaillieisn't impressed by the government's energy plan or its tough talkabout regulatingNova Scotia Power.

"A $1 million dollar maximum penalty.That's a slap on the wrist.Nova Scotians will laugh at that feeble attempt to show that they are trying to be tough on Nova Scotia Power," said Baillie.

He says the province's strategyto handle Nova Scotia Power's fuel costs also makes no sense.

In the energy planthe province says projected fuel costs will be averaged over three years and included in the power rate at the same amount each year.

The real cost will be figured out later, but it will be same in 2017, 2018 and 2019.

Baillie believes that change will justincrease the hardship onratepayers. Hewants to see the risk of fuel increases become the responsibility of Nova Scotia Power.

"Today all that's happened is they're spreading out those increases, they're not stopping them," said Baillie.

"Insteadof the power company,which has the expertise to absorb the risk of fuel increases, doing its job, they get to continue to pass thoseincreases onto Nova Scotia ratepayers.It's not a true freeze until we actually change that."

Renewable power

There are now 121 small-scale community renewable energy projects in the province.

Those, combined with Muskrat Falls coming on at the end of 2017, meanthe province is on track to meet its goal of 40 per cent renewable electricity by 2020.

The province also wants to have between 16 and 22 megawattsof electricity from in-stream tidal production near Parrsboro by the early 2020s.

The estimated impact that will have on power rates is less than twoper cent over three to six years.

The plan also commits $1.5 million over next threeyears to research technologies related to energy storage, tidaland solar power.