The Carbon Reduction Commitment (CRC) scheme being implemented by the United Kingdom in an effort to improve energy efficiency and reduce the country's carbon footprint is likely to affect more than 5,000 large domestic, private and public sector organizations including companies, supermarkets, hotels, schools, hospitals, banks and local authorities.
The mandatory CRC trading scheme, a part of the Climate Change Act, requires companies in the UK to record, monitor and report their energy usage. The scheme is projected to result in savings of more than $1.4 billion by 2020 and reduce carbon-dioxide emissions by nearly 4 million tons per year. The UK is aiming to reduce carbon emissions by 80% by 2050 from the emission levels recorded in 1990.
Eligibility criterion for the CRC program is based on the electricity consumption of an organization. All locations and facilities of an organization including its subsidiaries are considered as a single entity. Organizations with a total metered half-hourly electricity consumption of at least 6,000 megawatt-hours in 2008 are obligated to participate in the program.
The CRC trading scheme is slated to begin in April 2010, with an introductory phase spanning three years. During the "qualification period" of the introductory phase, organizations will be required to assess whether they are eligible to participate in the program. This would be followed by the "registration period" in which participant organizations are legally required to register and disclose their energy footprint by September 30, 2010, or within the first six months of every phase.
Compliance years will run from April to March. The first compliance year, April 2010-March 2011, known as the "footprint year," will facilitate monitoring and reporting of emissions by participants based on their usage. A monetary fine will be levied on the defaulting organizations.
Companies are expected to estimate their energy consumption at the beginning of a compliance year based on their usage and buy carbon allowances sold by the government for each ton of carbon dioxide emitted. Electricity, gas, coal, liquefied petroleum gas and diesel are some of the carbon-emitting fuels included in the list in the CRC regulations. The first sale of allowances is planned from the second compliance year, April 2011-March 2012. The price of carbon allowances is currently fixed at $16.80 per ton of carbon dioxide emissions for the introductory phase, 2010-2012.
Participants are required to submit their annual energy consumption and emission figures at the end of every compliance year. They will have to purchase additional allowances at a higher price if the actual emission figures exceed forecasts. Companies will be able to buy extra allowances either through the secondary market from other CRC participants or through the safety valve. The more carbon an organization emits, the more it will have to spend in buying allowances. This is expected to motivate organizations to trim emissions and save on energy bills.
Subsequent phases are planned to run for a seven-year period with the first capped phase scheduled to commence in 2013. In this phase, auctioning of carbon allowances will be permitted.
The government plans to publish a CRC league table annually listing the top-performing CRC participants. The revenue from the CRC scheme will be used for financially rewarding and recognizing the most energy-efficient companies.
Boeing 787 More-Electric Architecture replaces pneumatics with bleedless pressurization, VFSG starter-generators, electric brakes, and heated wing anti-ice, leveraging APU, RAT, batteries, and airport ground power for efficient, redundant electrical power distribution.
Key Points
An integrated, bleedless electrical system powering start, pressurization, brakes, and anti-ice via VFSGs, APU and RAT.
✅ VFSGs start engines, then generate 235Vac variable-frequency power
✅ Bleedless pressurization, electric anti-ice improve fuel efficiency
✅ Electric brakes cut hydraulic weight and simplify maintenance
The 787 Dreamliner is different to most commercial aircraft flying the skies today. On the surface it may seem pretty similar to the likes of the 777 and A350, but get under the skin and it’s a whole different aircraft.
When Boeing designed the 787, in order to make it as fuel efficient as possible, it had to completely shake up the way some of the normal aircraft systems operated. Traditionally, systems such as the pressurization, engine start and wing anti-ice were powered by pneumatics. The wheel brakes were powered by the hydraulics. These essential systems required a lot of physical architecture and with that comes weight and maintenance. This got engineers thinking.
What if the brakes didn’t need the hydraulics? What if the engines could be started without the pneumatic system? What if the pressurisation system didn’t need bleed air from the engines? Imagine if all these systems could be powered electrically… so that’s what they did.
Power sources
The 787 uses a lot of electricity. Therefore, to keep up with the demand, it has a number of sources of power, much as grid operators track supply on the GB energy dashboard to balance loads. Depending on whether the aircraft is on the ground with its engines off or in the air with both engines running, different combinations of the power sources are used.
Engine starter/generators
The main source of power comes from four 235Vac variable frequency engine starter/generators (VFSGs). There are two of these in each engine. These function as electrically powered starter motors for the engine start, and once the engine is running, then act as engine driven generators.
The generators in the left engine are designated as L1 and L2, the two in the right engine are R1 and R2. They are connected to their respective engine gearbox to generate electrical power directly proportional to the engine speed. With the engines running, the generators provide electrical power to all the aircraft systems.
APU starter/generators
In the tail of most commercial aircraft sits a small engine, the Auxiliary Power Unit (APU). While this does not provide any power for aircraft propulsion, it does provide electrics for when the engines are not running.
The APU of the 787 has the same generators as each of the engines — two 235Vac VFSGs, designated L and R. They act as starter motors to get the APU going and once running, then act as generators. The power generated is once again directly proportional to the APU speed.
The APU not only provides power to the aircraft on the ground when the engines are switched off, but it can also provide power in flight should there be a problem with one of the engine generators.
Battery power
The aircraft has one main battery and one APU battery. The latter is quite basic, providing power to start the APU and for some of the external aircraft lighting.
The main battery is there to power the aircraft up when everything has been switched off and also in cases of extreme electrical failure in flight, and in the grid context, alternatives such as gravity power storage are being explored for long-duration resilience. It provides power to start the APU, acts as a back-up for the brakes and also feeds the captain’s flight instruments until the Ram Air Turbine deploys.
Ram air turbine (RAT) generator
When you need this, you’re really not having a great day. The RAT is a small propeller which automatically drops out of the underside of the aircraft in the event of a double engine failure (or when all three hydraulics system pressures are low). It can also be deployed manually by pressing a switch in the flight deck.
Once deployed into the airflow, the RAT spins up and turns the RAT generator. This provides enough electrical power to operate the captain’s flight instruments and other essentials items for communication, navigation and flight controls.
External power
Using the APU on the ground for electrics is fine, but they do tend to be quite noisy. Not great for airports wishing to keep their noise footprint down. To enable aircraft to be powered without the APU, most big airports will have a ground power system drawing from national grids, including output from facilities such as Barakah Unit 1 as part of the mix. Large cables from the airport power supply connect 115Vac to the aircraft and allow pilots to shut down the APU. This not only keeps the noise down but also saves on the fuel which the APU would use.
The 787 has three external power inputs — two at the front and one at the rear. The forward system is used to power systems required for ground operations such as lighting, cargo door operation and some cabin systems. If only one forward power source is connected, only very limited functions will be available.
The aft external power is only used when the ground power is required for engine start.
Circuit breakers
Most flight decks you visit will have the back wall covered in circuit breakers — CBs. If there is a problem with a system, the circuit breaker may “pop” to preserve the aircraft electrical system. If a particular system is not working, part of the engineers procedure may require them to pull and “collar” a CB — placing a small ring around the CB to stop it from being pushed back in. However, on the 787 there are no physical circuit breakers. You’ve guessed it, they’re electric.
Within the Multi Function Display screen is the Circuit Breaker Indication and Control (CBIC). From here, engineers and pilots are able to access all the “CBs” which would normally be on the back wall of the flight deck. If an operational procedure requires it, engineers are able to electrically pull and collar a CB giving the same result as a conventional CB.
Not only does this mean that the there are no physical CBs which may need replacing, it also creates space behind the flight deck which can be utilised for the galley area and cabin.
A normal flight
While it’s useful to have all these systems, they are never all used at the same time, and, as the power sector’s COVID-19 mitigation strategies showed, resilience planning matters across operations. Depending on the stage of the flight, different power sources will be used, sometimes in conjunction with others, to supply the required power.
On the ground
When we arrive at the aircraft, more often than not the aircraft is plugged into the external power with the APU off. Electricity is the blood of the 787 and it doesn’t like to be without a good supply constantly pumping through its system, and, as seen in NYC electric rhythms during COVID-19, demand patterns can shift quickly. Ground staff will connect two forward external power sources, as this enables us to operate the maximum number of systems as we prepare the aircraft for departure.
Whilst connected to the external source, there is not enough power to run the air conditioning system. As a result, whilst the APU is off, air conditioning is provided by Preconditioned Air (PCA) units on the ground. These connect to the aircraft by a pipe and pump cool air into the cabin to keep the temperature at a comfortable level.
APU start
As we near departure time, we need to start making some changes to the configuration of the electrical system. Before we can push back , the external power needs to be disconnected — the airports don’t take too kindly to us taking their cables with us — and since that supply ultimately comes from the grid, projects like the Bruce Power upgrade increase available capacity during peaks, but we need to generate our own power before we start the engines so to do this, we use the APU.
The APU, like any engine, takes a little time to start up, around 90 seconds or so. If you remember from before, the external power only supplies 115Vac whereas the two VFSGs in the APU each provide 235Vac. As a result, as soon as the APU is running, it automatically takes over the running of the electrical systems. The ground staff are then clear to disconnect the ground power.
If you read my article on how the 787 is pressurised, you’ll know that it’s powered by the electrical system. As soon as the APU is supplying the electricity, there is enough power to run the aircraft air conditioning. The PCA can then be removed.
Engine start
Once all doors and hatches are closed, external cables and pipes have been removed and the APU is running, we’re ready to push back from the gate and start our engines. Both engines are normally started at the same time, unless the outside air temperature is below 5°C.
On other aircraft types, the engines require high pressure air from the APU to turn the starter in the engine. This requires a lot of power from the APU and is also quite noisy. On the 787, the engine start is entirely electrical.
Power is drawn from the APU and feeds the VFSGs in the engines. If you remember from earlier, these fist act as starter motors. The starter motor starts the turn the turbines in the middle of the engine. These in turn start to turn the forward stages of the engine. Once there is enough airflow through the engine, and the fuel is igniting, there is enough energy to continue running itself.
After start
Once the engine is running, the VFSGs stop acting as starter motors and revert to acting as generators. As these generators are the preferred power source, they automatically take over the running of the electrical systems from the APU, which can then be switched off. The aircraft is now in the desired configuration for flight, with the 4 VFSGs in both engines providing all the power the aircraft needs.
As the aircraft moves away towards the runway, another electrically powered system is used — the brakes. On other aircraft types, the brakes are powered by the hydraulics system. This requires extra pipe work and the associated weight that goes with that. Hydraulically powered brake units can also be time consuming to replace.
By having electric brakes, the 787 is able to reduce the weight of the hydraulics system and it also makes it easier to change brake units. “Plug in and play” brakes are far quicker to change, keeping maintenance costs down and reducing flight delays.
In-flight
Another system which is powered electrically on the 787 is the anti-ice system. As aircraft fly though clouds in cold temperatures, ice can build up along the leading edge of the wing. As this reduces the efficiency of the the wing, we need to get rid of this.
Other aircraft types use hot air from the engines to melt it. On the 787, we have electrically powered pads along the leading edge which heat up to melt the ice.
Not only does this keep more power in the engines, but it also reduces the drag created as the hot air leaves the structure of the wing. A double win for fuel savings.
Once on the ground at the destination, it’s time to start thinking about the electrical configuration again. As we make our way to the gate, we start the APU in preparation for the engine shut down. However, because the engine generators have a high priority than the APU generators, the APU does not automatically take over. Instead, an indication on the EICAS shows APU RUNNING, to inform us that the APU is ready to take the electrical load.
Shutdown
With the park brake set, it’s time to shut the engines down. A final check that the APU is indeed running is made before moving the engine control switches to shut off. Plunging the cabin into darkness isn’t a smooth move. As the engines are shut down, the APU automatically takes over the power supply for the aircraft. Once the ground staff have connected the external power, we then have the option to also shut down the APU.
However, before doing this, we consider the cabin environment. If there is no PCA available and it’s hot outside, without the APU the cabin temperature will rise pretty quickly. In situations like this we’ll wait until all the passengers are off the aircraft until we shut down the APU.
Once on external power, the full flight cycle is complete. The aircraft can now be cleaned and catered, ready for the next crew to take over.
Bottom line
Electricity is a fundamental part of operating the 787. Even when there are no passengers on board, some power is required to keep the systems running, ready for the arrival of the next crew. As we prepare the aircraft for departure and start the engines, various methods of powering the aircraft are used.
The aircraft has six electrical generators, of which only four are used in normal flights. Should one fail, there are back-ups available. Should these back-ups fail, there are back-ups for the back-ups in the form of the battery. Should this back-up fail, there is yet another layer of contingency in the form of the RAT. A highly unlikely event.
The 787 was built around improving efficiency and lowering carbon emissions whilst ensuring unrivalled levels safety, and, in the wider energy landscape, perspectives like nuclear beyond electricity highlight complementary paths to decarbonization — a mission it’s able to achieve on hundreds of flights every single day.
Germany Nuclear Power Extension keeps Isar 2, Neckarwestheim 2, and Emsland running as Olaf Scholz tackles the energy crisis, soaring gas prices, and EU winter demand, prioritizing grid stability amid the Ukraine war.
Key Points
A temporary policy keeping three German reactors online to enhance grid stability and national energy security.
✅ Extends Isar 2, Neckarwestheim 2, and Emsland operations
✅ Addresses EU energy crisis and soaring gas prices
✅ Prioritizes grid stability while coal phase-out advances
German Chancellor Olaf Scholz has ordered the country's three remaining nuclear power stations to keep operating until mid-April, signalling a nuclear U-turn as the energy crisis sparked by Russia's invasion of Ukraine hurts the economy.
Originally Germany planned to phase out all three by the end of this year, continuing its nuclear phaseout policy at the time.
Mr Scholz's order overruled the Greens in his coalition, who wanted two plants kept on standby, to be used if needed.
Nuclear power provides 6% of Germany's electricity.
The decision to phase it out was taken by former chancellor Angela Merkel after Japan's Fukushima nuclear disaster in 2011.
But gas prices have soared since Russia's invasion of Ukraine in February, which disrupted Russia's huge oil and gas exports to the EU, though some officials argue that nuclear would do little to solve the gas issue in the short term. In August Russia turned off the gas flowing to Germany via the Nord Stream 1 undersea pipeline.
After relying so heavily on Russian gas Germany is now scrambling to maintain sufficient reserves for the winter. The crisis has also prompted it to restart mothballed coal-fired power stations, with coal generating about a third of its electricity currently, though the plan is to phase out coal in the drive for green energy.
Last year Germany got 55% of its gas from Russia, but in the summer that dropped to 35% and it is declining further.
EU leaders consider how to cap gas prices France sends Germany gas for first time amid crisis Chancellor Scholz's third coalition partner, the liberal Free Democrats (FDP), welcomed his move to keep nuclear power as part of the mix. The three remaining nuclear plants are Isar 2, Neckarwestheim 2 and Emsland, which were ultimately shut down after the extension.
The Social Democrat (SPD) chancellor also called for ministries to present an "ambitious" law to boost energy efficiency and to put into law a phase-out of coal by 2030, aiming for a coal- and nuclear-free economy among major industrial nations.
Last week climate activist Greta Thunberg said it was a "mistake" for Germany to press on with nuclear decommissioning while resorting to coal again, intensifying debate over a nuclear option for climate goals nationwide.
Global Renewable Electricity Milestone signals solar, wind, hydro, and geothermal surpass 30% of power generation, driven by falling costs, battery storage, smart grids, and ambitious policy targets that strengthen energy security and decarbonization.
Key Points
It marks renewables exceeding 30% of global power, enabled by cheaper tech, storage, and strong policy.
✅ Costs of solar and wind fall, boosting competitiveness
✅ Storage and smart grids improve reliability and flexibility
✅ Policies target decarbonization while ensuring just transition
A recent report by the energy think tank Ember marks a significant milestone in the global energy transition. For the first time ever, according to their analysis, renewable energy sources like solar, wind, hydro, and geothermal now account for more than 30% of the world's electricity generation, a milestone echoed by wind and solar growth globally. This achievement signifies a pivotal shift towards a cleaner and more sustainable energy future.
The report attributes this growth to several key factors. Firstly, the cost of renewable energy technologies like solar panels and wind turbines has plummeted in recent years, making them increasingly competitive with traditional fossil fuels. Secondly, advancements in battery storage technology are facilitating the integration of variable renewable sources like solar and wind into the grid, addressing concerns about reliability. Thirdly, a growing number of countries are implementing ambitious renewable energy targets and policies, driven by environmental concerns and the desire for energy security.
The rise of renewables is not uniform across the globe. Europe leads the pack, with the European Union generating a staggering 44% of its electricity from renewable sources in 2023. Countries like Denmark, Germany, and Spain are at the forefront of this clean energy revolution. Developing nations are also starting to embrace renewables, driven by factors like falling technology costs and the need for affordable electricity access.
However, challenges remain. Fossil fuels still dominate the global energy mix, accounting for roughly two-thirds of electricity generation. Integrating a higher proportion of variable renewables into the grid necessitates robust storage solutions and smart grid technologies. Additionally, the transition away from fossil fuels needs to be managed carefully to ensure a just and equitable outcome for workers in the coal, oil, and gas sectors.
Despite these challenges, the report by Ember paints an optimistic picture. The rapid growth of renewables demonstrates their increasing viability and underscores the global commitment to a cleaner energy future, and in the United States, for example, renewables are projected to reach one-fourth of U.S. electricity generation, reinforcing this trajectory. The report also highlights the economic benefits of renewables, with new jobs created in the clean energy sector and reduced reliance on volatile fossil fuel prices.
Looking ahead, continued technological advancements, supportive government policies, and increased investment in renewable energy infrastructure are all crucial for further growth, with scenarios such as BNEF's 2050 outlook suggesting wind and solar could provide half of electricity, underscoring the importance of sustained effort. Furthermore, international cooperation is essential to ensure a smooth and equitable global energy transition. Developed nations can play a vital role by sharing technology and expertise with developing countries.
The 30% milestone is a significant step forward, but it's just the beginning. As the world strives to combat climate change and ensure energy security for future generations, renewables are poised to play a central role in powering a sustainable future, with wind and solar surpassing coal in the U.S. offering a clear signal of the shift. The report by Ember serves as a powerful reminder that a clean energy future is not just a dream, but a rapidly unfolding reality.
Hydro One Account Customization lets Ontario customers pick billing due dates, enable balanced billing, get early high usage notifications, monitor electricity consumption, and receive outage alerts, offering flexibility during COVID-19.
Key Points
A flexible toolkit to set due dates, balance bills, get usage alerts, and track electricity.
✅ Pick your billing due date for better cash flow
✅ Balanced billing smooths seasonal usage spikes
✅ Early high usage and outage alerts via text or email
Hydro One announced it is providing its customers with the flexibility to customize their account. Customers can choose their own billing due date, flatten usage spikes from temperature fluctuations through balanced billing and the Ultra-Low Overnight Price Plan, and monitor their electricity consumption by signing up for early high usage notifications.
Research shows that Ontario electricity customers want more choice and flexibility (CNW Group/Hydro One Inc.) "Being in-tune with our customers' needs is more important than ever. As we continue to navigate the COVID-19 pandemic, customers tell us that choice and flexibility, alongside electricity relief, will help them during this difficult time," said Jason Fitzsimmons, Chief Corporate Affairs and Customer Care Officer, Hydro One. "As a customer-driven organization, we have an important responsibility to support customers with relief, flexibility and choice."
According to recent research conducted by Angus Reid, 78 per cent of Ontario electricity customers said balanced billing would help them better manage their finances, even as peak hydro rates remained unchanged for many self-isolating customers. Balanced billing flattens out the spikes in electricity usage that commonly occurs in the summer due to air conditioning use and in the winter due to heating.
The research also found that 72 per cent of customers would like to pick their own due date to better manage their finances. This feature is now included in Hydro One's new customization bundle, which will be shared with customers through an awareness campaign. Other customization tools include alerts when electricity usage falls outside of the customer's normal pattern, the ability to report outages online and the ability to receive text messages or emails when outages occur. Customers can visit www.HydroOne.com/Choice to learn more.
"Customers can pick and choose the tools that work best for them. We are now able to offer a suite of features built for any lifestyle as our employees support Ontario's COVID-19 response across the province," said Fitzsimmons.
In addition to these customization options, Hydro One has also developed a number of customer support measures during COVID-19, including a Pandemic Relief Fund to offer payment flexibility and financial assistance to customers. The company is also extending its ban on electricity disconnections to ensure that no customer is disconnected at a time when support is needed most. More information about Hydro One's Pandemic Relief Program can be found at www.HydroOne.com/PandemicRelief. Customers can continue to contact Hydro One to determine individual payment plans and determine financial assistance programs available to meet their needs, especially as disconnection pressures can arise for some households.
Manitoba Hydro Court Ruling affirms the Public Utilities Board exceeded its jurisdiction by ordering a First Nations rate class, overturning an electricity rates appeal tied to geography, poverty, and regulatory authority in Manitoba.
Key Points
A decision holding the PUB lacked authority to create a First Nations rate class, restoring uniform electricity pricing.
✅ Equalized electricity pricing reaffirmed across Manitoba
✅ Geography, not poverty, found decisive in unlawful rate class
Manitoba Hydro was wrongly forced to create a new rate class for electricity customers living on First Nations, the Manitoba Court of Appeal has ruled.
The court decided the Public Utilities Board "exceeded its jurisdiction" by mandating Indigenous customers on First Nations could have a different electricity rate from other Manitobans.
The board made the order in 2018, which exempted those customers from the general rate increase that year of 3.6 per cent.
"The directive constituted the creation and implementation of general social policy, an area outside of the PUB's jurisdiction and encroaching into areas that are better suited to the federal and provincial government," says the decision, which was released Tuesday.
Hydro's appeal of the PUB's decision went to court earlier this year.
At the time, the Crown corporation acknowledged many Indigenous people on First Nations live in poverty, but it argued the Public Utilities Board was overstepping its authority in trying to address the issue by creating a new rate class.
It also argued it was against provincial law to charge different rates in different areas of the province.
The PUB, however, insisted that legislation gives it the right to decide which factors are relevant when considering electricity prices, such as social issues.
Special Manitoba Hydro rate class needed to offset challenges of living on First Nations, appeal court hears Manitoba Hydro can appeal order to create special First Nation rate The board had heard evidence that some customers were making "unacceptable" sacrifices to keep the lights on each month.
Decision 'heavy-handed': AMC The Assembly of Manitoba Chiefs, an intervener in the appeal, had backed the utility board's position. It said on-reserve customers are disproportionately vulnerable to rate hikes over time.
Grand Chief Arlen Dumas said Wednesday he was surprised by the court's ruling.
"I will be speaking with my federal and provincial counterparts on how we deal with this issue, because I think it's the wrong [decision]. It's heavy-handed and we need to address it."
The appeal court judges said there is past precedent for setting equal electricity rates, regardless of where customers live. Legislation to that effect was made in the early 2000s and a few years ago, the PUB recognized that geographical limitations should not be imposed on a class of customers.
Since the board's new order didn't extend the same savings to First Nations members who don't live on reserve but face similar financial circumstances, it is clear the deciding factor was geography, rather than poverty or treaty status, the judges said.
Manitoba Hydro temporarily cutting 200 jobs, many of them front-line workers "In my view, the PUB erred in law when it created an on-reserve class based solely on a geographic region of the province in which customers are located," the decision read.
While Manitoba Hydro objected to the PUB's order in 2018, it still devoted money to create the new customer class.
Spokesperson Bruce Owen said the utility is still studying the impact of the court's decision, but it appreciates the ruling.
"We all recognize that many people on First Nations have challenges, but our argument was solely on whether or not the PUB had the authority to create a special rate class based on where people live."
Owen added that Hydro recognizes electricity rates can be a hardship on individuals facing poverty. He said those considerations are part of the discussions the corporation has with the utilities board.
Nova Scotia Power Rate Increase 2023-2024 approved by the UARB lifts electricity rates 14 percent, citing fuel costs and investments, despite Bill 212; includes ROE 9 percent, decarbonization deferral, and a storm cost recovery rider.
Key Points
An approved UARB rate case raising electricity bills about 14% over 2023-2024, with ROE 9% and cost recovery tools.
✅ UARB approves average 6.9% annual increases for 2023 and 2024.
✅ Government opposed via Bill 212, but settlement mostly upheld.
Nova Scotia regulators approved a 14 per cent electricity rate hike on Thursday, defying calls by Premier Tim Houston to reject the increase.
Rates will rise on average by 6.9 per cent each year in 2023 and 2024.
In Newfoundland and Labrador, the NL Consumer Advocate called an 18 per cent electricity rate hike unacceptable amid affordability concerns.
The Nova Scotia Utility and Review Board (UARB) issued a 203-page decision ratifying most of the elements in a settlement agreement reached between Nova Scotia Power and customer groups after Houston's government legislated a rate, spending and profit cap on the utility in November.
The board said approval was in the public interest and the increase is "reasonable and appropriate."
"The board cannot simply disallow N.S. Power's reasonable costs to make rates more affordable. These principles ensure fair rates and the financial health of a utility so it can continue to invest in the system providing services to its customers," the three-member panel wrote.
"While the board can (and has) disallowed costs found to be imprudent or unreasonable, absent such a finding, N.S. Power's costs must be reflected in the rates."
In addition to the 14 per cent hike, the board maintained Nova Scotia Power's current return on equity of 9 per cent, with an earnings band of 8.75 to 9.25 per cent. It agreed in principle to establish a decarbonization deferral account to pay for the retirement of coal plants and related decommissioning costs, and implemented a storm cost recovery rider for a three-year trial period.
The board rejected several items in the agreement, including rolling some Maritime Link transmission capital projects into consumers' rates.
Nova Scotia Power welcomed the ruling in a statement, describing it as "the culmination of an extensive and transparent regulatory process over the past year."
Natural Resources and Renewables Minister Tory Rushton, who has said the government cannot order lower power rates in Nova Scotia, stated the UARB decision was not what the government wanted, but he did not indicate the government has any plans to bring forward legislation to overturn it.
"We're disappointed by the decision today. We've always been very clear that we were standing by ratepayers right from the get-go but we also respect the independent body of the UARB and their decision today."
Pressure from the province Houston claimed the settlement breached his government's legislation, known as Bill 212 in Nova Scotia, which he said was intended to protect ratepayers. It capped rates to cover non-fuel costs by 1.8 per cent. It did not cap rates to cover fuel costs or energy efficiency programs.
Bill 212 was passed after the board concluded weeks of public hearings into Nova Scotia Power's request for an electricity rate increase, its first general rate application in 10 years. Nova Scotia Power is a subsidiary of Halifax-based Emera, which is a publicly traded company.
The legislation triggered credit downgrades from two credit rating agencies who said it compromised the independence of the Nova Scotia Utility and Review Board.
In Newfoundland and Labrador, electricity users have begun paying for Muskrat Falls as project costs flow through rates, highlighting broader pressures on Atlantic Canada utilities.
In its decision, the board accepted that legislation was intended to protect ratepayers but did not preclude increases in rates.
"Given the exclusion of fuel and purchased power costs when these were expected to cause significant upward pressure on rates, it also did not preclude large increases in rates. Instead, the protection afforded by the Public Utilities Act amendments appears to be focused on N.S. Power's non-fuel costs, with several amendments targeting N.S. Power's cost of capital and earnings."
The board noted the province was the only intervenor in the rate case to object to the settlement.
Opposition reaction Rushton said despite the outcome, Bill 212 achieved its goal, which was to protect ratepayers.
"Without Bill 212 the rates would have actually been higher," he said. "It would have double-digit rates for this year and next year and now it's single digits."
NDP Leader Claudia Chender said the end result is that Nova Scotians are still facing "incredibly unaffordable power."
Similar criticism emerged in Saskatchewan after an 8 per cent SaskPower increase, which the NDP opposed during provincial debates.
"It's really unfortunate for a lot of Nova Scotians who are heading into a freezing weekend where heat is not optional."
Chender said a different legislative approach is needed to change the regulatory system, and more needs to be done to help people pay their electricity bills.
Liberal MLA Kelly Regan echoed that sentiment.
"There are lots of people who can absorb this. There are a lot of people who cannot, and those are the people that we should be worried about right now. This is why we've been saying all along the government needs to actually give money directly to Nova Scotians who need help with power rates."
Rushton said the government has introduced programs to help Nova Scotians pay for heat, including raising the income threshold to access the Heating Assistance Rebate Program and creating incentives to install heat pumps.
