News release

Province Steps in to Limit Power Rate Increases

Premier's Office

Premier Darrell Dexter, today July 22, announced government's plan to reduce the impact of rising fuel costs and make life more affordable for Nova Scotians by making changes to the province's air quality regulations.

"I said that Nova Scotians would not be unduly burdened by our commitment to reduce mercury. The plan we are announcing today will result in more affordable electricity while maintaining government's environmental commitments," said Premier Dexter.

The province will amend its air quality regulations to extend the deadline for achieving the 2010 cap until 2014 and require an even lower emissions cap of 35 kilograms by 2020. By 2020, total mercury emissions will be lower than originally set.

Nova Scotia Power will also be required to make up for any emissions over 65 kilograms per year and submit a plan on how it will be accomplished. The new 2010 cap will still be lower than levels in 2009, and result in a year over year improvement.

"Nova Scotians said the proposed power increase would have a devastating impact and government listened," said Premier Dexter. "Nova Scotia Power has agreed to look at a change in their technology in order to reduce costs, make electricity more affordable and ensure the province meets its mercury emission targets."

Nova Scotia Power released projections two weeks ago about the cost of fuel to generate power which could see electricity rates increase by 12 per cent or more for residential customers and 18 per cent or more for large industries. The rate increase would be effective in January.

The utility attributes about half of the increase to the cost of meeting provincial regulations on mercury emissions, currently set at 65 kilograms per year.

"No one is ever happy when there is an increase to the cost of doing business," said Robert Patzelt, of the Canadian Manufacturers and Exporters Nova Scotia division. "We, along with others, approached government about our concerns and they have listened. This decision reflects their understanding of the importance of working together to achieve the right balance in protecting our environment and maintaining our competitiveness."

"By taking this approach, we will see less mercury in the environment by 2020 and significantly reduced levels in the years leading up to that," said Sterling Belliveau, Minister of Environment. "This decision was based on doing what is right for Nova Scotians now and in the future."