Houston Says It’s Time To Review ‘Relationship’ With NS Power

HALIFAX–Tim Houston wants Nova Scotians to believe he is on the side of protecting ratepayers when it comes to dealing with Nova Scotia Power and its rate application.

The premier repeated that message during a 15-minute video conference with reporters on February 2. He told the media that his government is willing to use “any and all tools” at the government’s disposal.

“There should be no confusion to where our allegiance lays, and that’s with Nova Scotians and ratepayers in this province,” said Houston.

“It’s time to look at every aspect of every relationship between Nova Scotians and Nova Scotia Power.”

Following government intervention, NS Power scratched its controversial plan to increase fees paid by solar users to access the grid. But now, questions are coming in about whether Houston and the PC Party will use legislation to protect ratepayers from the proposed 10 percent general rate increase over three years.

Houston said that’s a possibility.

“Who knows? We might. We’re doing the homework; we’re exploring all options. I don’t want to presuppose any of this other to say we’ll do everything we can to protect the ratepayers.”

At the very least, said the premier, the provincial government will act as intervenors during the rate application process.

“Nothing is (off) the table…we’ll understand the options and then we’ll act.”

One controversial business aspect of NS Power that has irked Nova Scotians is the company’s protected profits.

The utility has been given a nine percent guaranteed rate of return. In theory, this means it could ask the Utility and Review Board to have ratepayers take on the burden of increased operational costs without ever sacrificing investor profits.

Given the fact that NS Power doesn’t have any major competition, and has been chastised in the recent past for not meeting performance standards, this profit protection doesn’t sit well with many.

Houston indicated this is one of the aspects that will be reviewed by the government.

Houston was asked point blank if, in hindsight, the PC Party made a mistake privatizing the utility 30 years ago. The premier would not condemn the politicians of decades past but didn’t defend the choice of privatization, either.

“It’s pretty hard to go back through time and put yourself in the shoes of people who made decisions 30 years ago,” said Houston. “I wouldn’t try to do that; I’ll leave that to people much smarter than myself.”

Houston was then asked if the government considered the possibility of making NS Power and public entity once again. Although he didn’t completely dismiss the idea, the premier indicated it would be unlikely because of the enormous expense involved in buying it back.

He noted that the province can hardly take on another massive debt, as it already spends $1-billion per year servicing interest payments.

The business community is also raising its concerns about the 10 percent hike over three years. Patrick Sullivan, CEO of the Halifax Chamber of Commerce, says businesses in the city are already being hit with higher operating costs.

“What we’re seeing is continued, added costs to the business community,” he said in an interview with Huddle. “This is on top of CPP increases, on top of rent increases and proposed tax increases.”

“It’s still one more thing…at a time when we’re still in a state of emergency and we’re still in a pandemic.”

Sullivan is warning consumers that extra expenses like this will ultimately have to be passed onto the customer.

“This will mean they will, unfortunately, have to add that cost into the cost of their products, goods, or services. Ultimately the customer will bear the costs.”

Derek Montague is a Huddle reporter in Halifax. Send him your feedback and story ideas: [email protected].