Nova Scotia Power rates could make big jump in 2020

Nova Scotia Power customersmaybe shocked to see how much their residential rates couldrise in 2020after three years of much smaller increases being sought by the utility.

The power company announced Monday it is seeking approval from theprovince'sUtility and Review Board for fuel cost adjustments that will see residential rates rise1.4 per cent or $2 per month on average in 2017, 2018 and 2019.

Not mentionedin the statement, however, is what could happenwhen the three years of stability are over.In the 546-pageapplication publishedto its website, the utility aims toincreaseratesfor residential customers 6.4 per cent in2020.

Most other customer classes could also be hit with considerable increases in 2020:

Commercial business

• Small: five per cent (1.6 per cent each of the three years prior)
• Medium: 8.5 per cent (0.6per cent each of the three years prior)
• Large: 1.1 per cent (3.8per cent each of the three years prior)

Industrial business

• Small: 8.3 per cent (0.9per cent each of the three years prior)
• Medium: 6.9 per cent (1.6per cent each of the three years prior)
• Large: 7.5 per cent (1.5per cent each of the three years prior)

In its statement, the utility says it won't be filing for a general residential rate increase forthe next three years. The rate includes non-fuel costs suchas labour, equipment and supplies.

"Our investments in diverse electricity sources, prudent fuel procurement and strict corporate cost control allow us to offer great predictability and stability for our customers," CEO BobHanf saidin Monday'sstatement.

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

Rates for residential customers went down 0.9 per cent on Jan. 1. When the utility announced those changes in December, it said fuel costs were likely to increase between 2017 and 2019.

Fuel costs covercoal, natural gas and renewable energy contracts used to generate electricity. The base cost of fuel can be reset every second year or during a general rate proceeding.

The Utility and Review Board will consider the utility's application during ahearing in June.