Nova Scotia Power: Premier Houston urges lower profits, spending cuts and an independent review

Premier Tim Houston told the Nova Scotia Energy Board he wants the utility's return on equity cut from 9% to 7.6% and a board-ordered savings review as the board considers Nova Scotia Power's rate application.

Premier Tim Houston submitted a 20-page filing to the Nova Scotia Energy Board asking the board to reject Nova Scotia Power's general rate application. He combined concerns about rising customer costs, the province's fiscal pressures and recent billing errors into a call for lower profits, reduced spending and an independent review. Houston also serves as energy minister and presented detailed figures and requests in his submission. Nova Scotia Power has an opportunity to respond to the board before it issues a decision. Key points: - Houston proposed cutting the company's return on equity from nine per cent to 7.6 per cent, which he and an expert witness said would reduce the utility's revenues by about $30 million this year and about $50 million next year. - He asked the board to reject a $20-million upgrade planned for a coal unit at the Lingan Generating Station in Cape Breton. - The submission called for a savings review under the Public Utilities Act to examine the utility's finances, operations and management. - Houston raised questions about roughly 500 additional full-time equivalent positions included in the rate application and asked the board to consider reducing that number. - He requested that any approved increase not be applied retroactively, noting customers have faced billing errors linked to last year's cybersecurity breach, and the filing noted cross-party opposition to the proposed rate hikes. Summary: Houston's submission would lower the company's allowed return and seek operational savings if the board accepts those measures, which would reduce the utility's proposed revenues. Nova Scotia Power can make a final response next week before the board makes its decision. The political parties in the legislature have expressed common concern about affordability and support for a review. Undetermined at this time.