LANL officials see lab's mission evolving

By Santa Fe New Mexican


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"Complex transformation may have been the buzz-phrase of the year at Los Alamos National Laboratory, but actually, the lab has never been a stranger to mission shifts.

In the 1970s, the lab played a large role in energy initiatives for the Carter administration, in the '80s, the lab did a lot of work with the FBI, and now, while the labs historic focus on nuclear nonproliferation and managing the stockpile remains, the push is on once again for change, said Terry Wallace, the lab's principal associate director for science, technology and engineering.

"We are seeing a tremendous pressure, and rightfully so, for a shift in mission space," he said. "But that's really not a bad thing. It's easy to get overly worried about mission swings."

Talk of complex transformation across the Department of Energy and all of its labs and facilities continued throughout 2008, and could well continue to evolve this year. The National Nuclear Security Administration's plan for Los Alamos in that process is to consolidate plutonium research from other DOE facilities to the lab, to add the capability of producing 50 to 80 nuclear weapons cores called pits each year, and overall — in what might seem like a contradiction to the other missions — to reduce the stockpile and the labs' nuclear weapons-based operations.

Key to that change is a building complex called the Chemistry and Metallurgy Research Replacement facility, estimated to cost between $745 million and $975 million when completed, according to the lab's Web site.

When completed, it will house more than just nuclear weapons activities. It will also be used to train nuclear inspectors, to investigate other areas of nuclear science such as reactors or batteries for NASA spacecraft and even to look at nuclear isotopes for medicine, said Joe Martz, nuclear weapons program director.

Scientists will need the facility no matter how much the lab's nuclear weapons operations shrink. And even though the goal is to have fewer nuclear weapons and fewer people monitoring them across the entire DOE complex, the basic abilities of scientists to be able to understand nuclear weapons is something that cannot change, Wallace said.

"Something like plutonium, even though we say we can handle it safely, we still need world-class facilities and scientists to maintain those abilities," he said. "Whether you have 20 or 2,000 warheads, you still have to maintain them."

The lab will likely always have some sort of focus on nuclear weapons science, but the shift to a smaller program started before complex transformation really spread into the limelight by the middle of the year. In late 2007 and early 2008, lab management shrank the staff by about 570 employees, through attrition or voluntary reductions.

And most of those jobs came from nuclear weapons areas, Wallace said, adding he doesn't foresee any more staff reductions in the coming year.

That said, some employees who left nuclear weapons-related jobs also didn't actually leave the lab. They simply shifted to other spots that could also use their skill sets, said Mike Burns, acting associate director for Threat Reduction.

"Threat reduction, we refer to that as national security programs that do not involve our nuclear stockpile, and through 2008, our portfolio grew by 6 percent," Burns said. "I personally think there are a lot of opportunities to grow in our areas of the lab."

Threat reduction, especially in the modern era of terrorism, will probably continue to grow rapidly in coming years. In that area, the lab investigates potential threats using sensors and monitors, by creating simulations on supercomputers and by looking at ways to save energy, among other things, Burns said.

"One area that's really interesting is something called mobility energy," Burns said. "The Department of Defense is the nation's largest user of things like fuel, jet fuel, gasoline. So if the lab can help find ways to make small reductions or changes there, it can create huge benefits for the nation."

Threat reduction also works on surveillance gadgets to help improve situational awareness on battlefields, hopefully saving American lives in the process, he said.

Another big area where some activities are shifting is to energy and power issues and how to improve storage and power grids in the United States, Wallace said. "We're also looking at next generation nuclear power because it can be an important resource that doesn't produce greenhouse gasses," he said.

Supercomputer activities, as well, have grown far beyond nuclear weapons functions at the lab.

Earlier in 2008 the lab started to install Roadrunner, a supercomputer that continues to be the fastest in the world. The speeds available on that computer have opened up entirely new areas of science, Martz said.

"These changes aren't just true at the lab — the nature of science is changing," he said. "We can do things now that seemed impossible 10 years ago."

Computer models of systems like the ribosome, tiny cellular factories that transform instructions from DNA into biological material, could play a huge role in medical science in the not-so-distant future. And computer models of ocean systems and climate can help us better understand how human activities are changing those systems, Martz said.

"In some ways, through these computer systems, science is coalescing," Martz said. "Many disciplines are coming together."

Still, while activities at the lab are shifting and changing, nuclear weapons science remains a large chunk of the budget.

About $650 million of the lab's fiscal 2008 $2.074 billion budget is not tied to nuclear weapons-related activities, Wallace said.

But he thinks it's likely the budget distribution will continue to shift away from nuclear and into more of the emerging science and technology areas.

"Budgets will likely remain about the same, but the buckets that each dollar goes into may change as we transform," Wallace said.

And there's an advantage to keeping people from nuclear operations around and letting them switch to work in non-nuclear weapons-related areas of the lab, he said.

Should the nation need them to go back to nuclear work, those workers can shift back and be up to speed on the science fairly quickly, Wallace said.

Overall, It's hard to say anything definitively about exactly where the lab will grow and shrink and how funding will continue to change. The Obama administration could change many things when it takes over the White House later this month.

No matter what happens, though, the lab seems to be in good shape to handle it and continue to transform with the times, Wallace said.

"We do what the nation asks us to do," he said. "And of course we'll continue to do whatever is needed."

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Ontario hydro rates set to increase Nov. 1, Ontario Energy Board says

Ontario Electricity Rebate clarifies hydro rates as OEB aligns bills with inflation, shows true cost per kilowatt hour, and replaces Fair Hydro Plan; transparent on-bill credit offsets increases tied to nuclear refurbishment and supply costs.

 

Key Points

A line-item credit on Ontario hydro bills that offsets higher electricity costs and reflects OEB-set rates.

✅ Starts Nov. 1 with rates in line with inflation

✅ Shows true per-kWh cost plus separate rebate line

✅ Driven by nuclear refurbishment and supply costs

 

The Ontario Energy Board says electricity rate changes for households and small businesses will be going up starting next week.

The agency says rates are scheduled to increased by about $1.99 or nearly 2% for a typical residential customer who uses 700 kilowatt hours per month.

The provincial government said in March it would continue to subsidize hydro rates, through legislation to lower rates, and hold any increases to the rate of inflation.

The OEB says the new rates, which the board says are “in line” with inflation, will take effect Nov. 1 as changes for electricity consumers roll out and could be noticed on bills within a few weeks of that date.

Prices are increasing partly due to government legislation aimed at reflecting the actual cost of supply on bills, and partly due to the refurbishment of nuclear facilities, contributing to higher hydro bills for some consumers.

So, effective November 1, Ontario electricity bills will show the true cost of power, after a period of a fixed COVID-19 hydro rate, and will include the new Ontario Electricity Rebate.

Previously the electricity rebate was concealed within the price-per-kilowatt-hour line item on electricity statements, prompting Hydro One bill redesign discussions to improve clarity. This meant customers could not see how much the government rebate was reducing their monthly costs, and bills did not display the true cost of electricity used.

"People deserve facts and accountability, especially when it comes to hydro costs," said Energy Minister Rickford.

The new Ontario Electricity Rebate will appear as a transparent on-bill line item and will replace the former government's Fair Hydro Plan says a government news release. This change comes in response to the Auditor General's special report on the former government's Fair Hydro Plan which revealed that "the government created a needlessly complex accounting/financing structure for the electricity rate reduction in order to avoid showing a deficit or an increase in net debt."

"The Electricity Distributors Association commends the government's commitment to making Ontario's electricity bills more transparent," said Teresa Sarkesian, President of the Electricity Distributors Association. "As the part of our electricity system that is closest to customers, local hydro utilities appreciated the opportunity to work with the government on implementing this important initiative. We worked to ensure that customers who receive their electricity bill will have a clear understanding of the true cost of power and the amount of their on-bill rebate. Local hydro utilities are focused on making electricity more affordable, reducing red tape, and providing customers with a modern and reliable electricity system that works for them."

The average customer will see the electricity line on their bill rise, showing the real cost per kilowatt hour. The new Ontario Electricity Rebate will compensate for that rise, and will be displayed as a separate line item on hydro bills. The average residential bill will rise in line with the rate of inflation.

 

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Ottawa hands N.L. $5.2 billion for troubled Muskrat Falls hydro project

Muskrat Falls funding deal delivers federal relief to Newfoundland and Labrador: Justin Trudeau outlines loan guarantees, transmission investment, Hibernia royalties, and $10-a-day child care to stabilize hydroelectric costs and curb electricity rate hikes.

 

Key Points

A $5.2b federal plan aiding NL hydro via loan guarantees, transmission funds, and Hibernia royalties to curb power rates.

✅ $1b for transmission and $1b in federal loan guarantees

✅ $3.2b via Hibernia royalty transfers through 2047

✅ Limits power rate hikes; adds $10-a-day child care in NL

 

Prime Minister Justin Trudeau was in Newfoundland and Labrador Wednesday to announce a $5.2-billion ratepayer protection plan to help the province cover the costs of a troubled hydroelectric project ahead of an expected federal election call.

Trudeau's visit to St. John's, N.L., wrapped up a two-day tour of Atlantic Canada that featured several major funding commitments, and he concluded his day in Newfoundland and Labrador by announcing the province will become the fourth to strike a deal with Ottawa for a $10-a-day child-care program.

As he addressed reporters, the prime minister was flanked by the six Liberal members of Parliament from the province. He alluded to the mismanagement that led the over-budget Muskrat Falls hydroelectric project to become what Liberal Premier Andrew Furey has called an "anchor around the collective souls" of the province.

"The pressures and challenges faced by Newfoundlanders and Labradorians for mistakes made in the past is something that Canadians all needed to step up on, and that's exactly what we did," Trudeau said.

Furey, who joined Trudeau for the two announcements and was effusive in his praise for the federal government, said the federal funding will help Newfoundland and Labrador avoid a spike in electricity rates as customers start paying for Muskrat Falls ahead of when the project begins generating power this November.

"Muskrat Falls has been the No. 1 issue facing Newfoundlanders and Labradorians now for well over a decade," Furey said, adding that he is regularly asked by people whether their electricity rates are going to double, a concern other provinces address through rate legislation in Ontario as well.

"We landed on a deal today that I think -- I know -- is a big deal for Newfoundland and Labrador and will finally get the muskrat off our back," he said.

The agreement-in-principle between the two governments includes a $1-billion investment from Ottawa in a transmission through Quebec portion of the project, as well as $1 billion in loan guarantees. The rest will come from annual transfers from Ottawa equivalent to its annual royalty gains from its share in the Hibernia offshore oilfield, which sits off the coast of St. John's. Those transfers are expected to add up to about $3.2 billion between now and 2047, when the oilfield is expected to run dry.

The money will help cover costs set to come due when the Labrador project comes online, preventing rate increases that would have been needed to pay the bills, and officials have discussed a lump-sum bill credit to help households. Though electricity rates in the province will still rise, to 14.7 cents per kilowatt hour from the current 12.5 cents, that's well below the projected 23 cents that officials had said would be needed to cover the project's costs.

Muskrat Falls was commissioned in 2012 at a cost of $7.4 billion, but its price tag has since ballooned to $13.1 billion. Ottawa previously backed the project with billions of dollars in loan guarantees, and in December, Trudeau announced he had appointed Serge Dupont, former deputy clerk of the Privy Council, to oversee rate mitigation talks with the province about financially restructuring the project.

Its looming impact on the provincial budget is set against an already grim financial situation: the province projected an $826-million deficit in its latest budget, and a recent financial update from the provincial energy corporation reflected pandemic impacts, coupled with $17.2 billion in net debt.

After visiting with children from a daycare centre in the College of the North Atlantic, Trudeau and Furey announced that in 2023, the average cost of regulated child care in the province for children under six would be cut to $10 a day from $25 a day. Trudeau said that within five years, almost 6,000 new daycare spaces would be created in the province.

"As part of the agreement, a new full-day, year-round pre-kindergarten program for four-year-olds will also start rolling out in 2023," the prime minister told reporters. "For parents, this agreement is huge."

Newfoundland and Labrador is the fourth province, after Prince Edward Island, Nova Scotia and British Columbia, to sign on to the federal government's child-care program.

 

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FPL stages massive response to Irma but power may not be back for days or weeks

FPL Power Restoration mobilizes Florida linemen and mutual-aid utility crews to repair the grid, track outages with smart meters, prioritize hospitals and essential services, and accelerate hurricane recovery across the state.

 

Key Points

FPL Power Restoration is the utility's hurricane effort to rebuild the grid and quickly restore service across Florida.

✅ 18,000 mutual-aid utility workers deployed from 28 states

✅ Smart meters pinpoint outages and accelerate repairs

✅ Critical facilities prioritized before neighborhood restorations

 

Teams of Florida Power & Light linemen, assisted by thousands of out-of-state utility workers and 200 Ontario workers who joined the effort, scrambled across Florida Monday to tackle the Herculean task of turning the lights back on in the Sunshine State.

The job is quite simply mind-boggling as Irma caused extensive damages to the power grid and the outages have broken previous records, and in other storms Louisiana's grid needed a complete rebuild after Hurricane Laura to restore service.

By 3 p.m. Monday, some 3.47 million of the company's 4.9 million customers in Florida were without power. This breaks the record of 3.24 million knocked off the grid during Hurricane Wilma in 2005, according to FPL spokesman Bill Orlove.

Prepared to face massive outages, FPL brought some 18,000 utility workers from 28 states here to join FPL crews, including Canadian power crews arriving to help restore service, to enable them to act more quickly.

“That’s the thing about the utility industry,” said  Alys Daly, an FPL spokeswoman. “It’s truly a family.”

Even with what is believed to be the largest assembly of utility workers ever assembled for a single storm in the United States, power restoration is expected to take weeks, not days in some areas.

FPL vowed to work as quickly as possible as they assess the damage and send out crews to restore power.

"We understand that people need to have power right away to get their lives back to normal," Daly said.

The priority, she said, were medical and emergency management facilities and then essential service providers like gas stations and grocery stores.

After that, FPL will endeavor to repair the problems that will restore power to the maximum number of people possible. Then it's individual neighborhoods.

As of 3 p.m. Monday, 219,040 of FPL's 307,600 customers on the Space Coast had no power. That's an improvement over the 260,600 earlier in the day.

Daly was unable to say Monday how many crews FPL had working in Brevard County. In some areas, power came back relatively swiftly, much quicker than expected.

" I was definitely surprised at how quickly they got our power back on here in NE Palm Bay," said Kelli Coats. "We lost power last night around 9 p.m Sunday and regained power around 8:30 a.m. today."

Others, many of them beachside, were looking at a full 24 hours without power and it's possible it could extend into Tuesday or longer.

One reason for improved response times since 2005, Daly said, is the installation of nearly 5 million "Smart Meters" at residences. These new devices, which replaced older analog models, allows FPL crews to track a neighborhood's power status via handheld computers, pinpointing the cause of an outage so it can be repaired.

Quick restoration is key as stores and restaurants struggle to re-open, and Gulf Power crews restored power in the early push. Without electricity many of them just can't re-start operations and get goods and services to consumers.

At the Atlanta-based Waffle House, which Federal Emergency Management Administration use to gauge the severity of damage and service to an area, restaurant executives are reviewing its operations in Florida and should have a better handle Monday afternoon how quickly restaurants will re-open.

"Right now, we're in an assessment phase," said Pat Warner, spokesman for Waffle House. "We're looking at which stores have power and which ones have damage."

FEMA's color-coded Waffle House Index started after the hurricanes in the early 2000s. It works like this: When an official phones a Waffle House to see if it is open,  the next stop is to assess it's level of service. If it's open and serving a full menu, the index is green. When the restaurant is open but serving a limited menu, it's yellow. When it's closed, it's red.

 

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Electricity blackouts spark protests in Iranian cities

Iran Power Outage Protests surge as electricity blackouts, drought, and a looming heat wave spark unrest in Tehran, Shiraz, and more, with chants against leadership, strikes, and sanctions-driven economic pressures mounting.

 

Key Points

Protests across Iran over blackouts, drought, and economic strain challenge authorities and demand accountability.

✅ Rolling blackouts blamed on drought, heat wave, and surging demand.

✅ Chants target leadership amid strikes and wage, water shortages.

✅ Legitimacy questioned after low-turnout election and sanctions.

 

There have been protests in a number of cities in Iran amid rising public anger over widespread electricity blackouts.

Videos on social media appeared to show crowds in Shar-e Rey near Tehran, Shiraz, Amol and elsewhere overnight.

Some people can be heard shouting "Death to the dictator" and "Death to Khamenei" - a reference to Supreme Leader Ayatollah Ali Khamenei.

The government has apologised for the blackouts, which it has blamed on a severe drought and high demand.

Elsewhere, similar outages have had political repercussions, as a widespread power outage in Taiwan prompted a minister's resignation earlier this year.

President Hassan Rouhani explained in televised remarks on Tuesday morning that the drought meant most of the country's hydroelectric power plants were not operating, placing more pressure on thermal power plants, and that electricity consumption had surged as people used air conditioning to cope with the intense summer heat.

"I apologise to our dear people who have faced problems and suffering in the past few days and I urge them to co-operate [by cutting their electricity use]. People complain about power outages and they are right," Mr Rouhani said.

A video that has gone viral in recent days shows a woman complaining about the blackouts and corruption at a government office in the northern city of Gorgan and demanding that her comments be conveyed to "higher-ups like Mr Rouhani". "The only thing you have done is forcing hijab on us," she shouts.

The president has promised that the government will seek to resolve the problems within the next two or three weeks.

However, a power sector spokesman warned on Monday that consumption was exceeding the production capacity of Iran's power plants by 11GW, and said a "looming heat wave" could make the situation worse, as seen in Iraq's summer electricity crunch this year.

Iranians have also been complaining about water shortages and the non-payment of wages by some local authorities, while thousands of people working in Iran's oil industry have been on strike over pay and conditions, as officials discuss further energy cooperation with Iraq to ease supply pressures.

There was already widespread discontent at government corruption and the economic hardship caused by sanctions that were reinstated when the US abandoned a nuclear deal with Iran three years ago, even as Iran supplies about 40% of Iraq's electricity through cross-border sales.

Analysts say that after the historically low turnout in last month's presidential election, when more than half of the eligible voters stayed at home, the government is facing a serious challenge to its legitimacy.

Mr Rouhani will be succeeded next month by Ebrahim Raisi, a hard-line cleric close to Ayatollah Khamenei who won 62% of the vote after several prominent contenders were disqualified, while Iran finalizes power grid deals with Iraq to bolster regional ties.

The 60-year-old former judiciary chief has presented himself as the best person to combat corruption and solve Iran's economic problems, including ambitions to transmit electricity to Europe as a regional power hub.

But many Iranians and human rights activists have pointed to his human rights record, accusing him of playing a role in the executions of thousands of political prisoners in the 1980s and in the deadly crackdowns on mass anti-government protests in 2009 and 2019.

 

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Trump's Canada Tariff May Spike NY Energy Prices

25% Tariff on Canadian Imports threatens New York energy markets, disrupting hydroelectric power and natural gas supply chains, raising electricity prices, increasing gas costs, and intensifying trade tensions, policy uncertainty, and cross-border logistics risks.

 

Key Points

A U.S. policy imposing 25% duties on Canadian goods, risking higher New York electricity and natural gas costs.

✅ Hydroelectric and gas imports face costlier cross-border flows

✅ Higher utility bills for NY households and businesses

✅ Supply chain volatility and policy uncertainty increase

 

President Donald Trump announced the imposition of a 25% tariff on all imports from Canada, citing concerns over drug trafficking and illegal immigration. This decision has raised significant concerns among experts and residents in New York, who warn that the tariff could lead to increased electricity and gas prices in the state.

Impact on New York's Energy Sector

New York relies heavily on energy imports from Canada, particularly electricity and natural gas. Canada is a major supplier of hydroelectric power to the northeastern United States, including New York, with its electricity exports at risk amid trade tensions. The imposition of a 25% tariff on Canadian goods could disrupt this supply chain, leading to higher energy costs for consumers and businesses in New York. Justin Wilcox, an energy analyst, stated, "If the tariff is implemented, it could lead to increased costs for electricity and gas, affecting both consumers and businesses."

Potential Economic Consequences

The increased energy costs could have broader economic implications for New York, and some experts advise against cutting Quebec's exports to avoid exacerbating market volatility. Higher electricity and gas prices may lead to increased operational costs for businesses, potentially resulting in higher prices for goods and services, while tariff threats have boosted support for Canadian energy projects that could reshape regional supply. This could exacerbate the cost-of-living challenges faced by residents and strain the state's economy.

Political and Diplomatic Reactions

The tariff has also sparked political and diplomatic reactions, including threats to cut U.S. electricity exports from Ontario that raised tensions. New York Governor Kathy Hochul expressed concern over the potential economic impact, stating, "We are closely monitoring the situation and are prepared to take necessary actions to protect New York's economy." Additionally, Canadian officials have expressed their disapproval of the tariff, and Ontario Premier Doug Ford's Washington meeting underscored ongoing discussions, emphasizing the importance of the trade relationship between the two countries.

Historical Context

This development is part of a broader pattern of trade tensions between the United States and its neighbors. In 2018, the U.S. imposed tariffs on Canadian steel and aluminum, leading to retaliatory measures from Canada. The current situation underscores the ongoing challenges in international trade relations, where a recent tariff threat delayed Quebec's green energy bill and highlighted the potential domestic impacts of such policies.

The imposition of a 25% tariff on Canadian imports by President Trump has raised significant concerns in New York regarding potential increases in electricity and gas prices. Experts warn that this could lead to higher costs for consumers and businesses, with broader economic implications for the state. As the situation develops, it will be crucial to monitor the responses from both state and federal officials, as well as how Canadians support tariffs on energy and minerals may influence policy, and the potential for diplomatic negotiations to address these trade tensions.

 

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Nova Scotia Premier calls on regulators to reject 14% electricity rate hike agreement

Nova Scotia Power Rate Increase Settlement faces UARB scrutiny as regulators weigh electricity rates, fuel costs, storm rider provisions, Bill 212 limits, and Muskrat Falls impacts on ratepayers and affordability for residential and industrial customers.

 

Key Points

A deal proposing 13.8% electricity hikes for 2023-2024, before the UARB, covering fuel costs, a storm rider, and Bill 212.

✅ UARB review may set different rates than the settlement

✅ Fuel cost prepayment and hedging incentives questioned

✅ Storm rider shifts climate risk onto ratepayers

 

Nova Scotia Premier Tim Houston is calling on provincial regulators to reject a settlement agreement between Nova Scotia Power and customer groups that would see electricity rates rise by nearly 14% electricity rate hike over the next two years.

"It is our shared responsibility to protect ratepayers and I can't state strongly enough how concerned I am that the agreement before you does not do that," Houston wrote in a letter to the Nova Scotia Utility and Review Board late Monday.

Houston urged the three-member panel to "set the agreement aside and reach its own conclusion on the aforementioned application."

"I do not believe, based on what I know, that the proposed agreement is in the best interest of ratepayers," he said.

The letter does not spell out what his Progressive Conservative government would do if the board accepts the settlement reached last week between Nova Scotia Power and lawyers representing residential, small business and large industrial customer classes.

Other groups also endorsed the deal, although Nova Scotia Power's biggest customer — Port Hawkesbury Paper — did not sign on.

'We're protecting the ratepayers'
Natural Resources Minister Tory Rushton said the province was not part of the negotiations leading up to the settlement.

"As a government or department we had no intel on those conversations that were taking place," he said Tuesday. "So, we saw the information the same as the public did late last week, and right now we're protecting the ratepayers of Nova Scotia, even though the province cannot order Nova Scotia Power to lower rates under current law. We want to make sure that that voice is still heard at the UARB level."

Rushton said he didn't want to presuppose what the UARB will say.

"But I think the premier's been very loud and clear and I believe I have been, too. The ratepayers are at the top of our mind. We have different tools at our [disposal] and we'll certainly do what we can and need to [do] to protect those ratepayers."


The settlement agreement
If approved by regulators, rates would rise by 6.9 per cent in 2023 and 6.9 per cent in 2024 — almost the same amount on the table when hearings before the review board ended in September.

The Houston government later intervened with legislation, known as Bill 212, that 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.

In a statement announcing the agreement, Nova Scotia Power president Peter Gregg claimed the settlement adhered "to the direction provided by the provincial government through Bill 212."

Consumer advocate Bill Mahody, representing residential customers, told CBC News the proposed 13.8 per cent increase was "a reasonable rate increase given the revenue requirement that was testified to at the hearing."

Settlement 'remarkably' similar to NSP application
The premier disagrees, noting that the settlement and rate application that triggered the rate cap are "remarkably consistent."

He objects to the increased amount of fuel costs rolled into rates next year before the annual true up of actual fuel costs, which are automatically passed on to ratepayers.

"If Nova Scotia Power is effectively paid in advance, what motive do they have to hedge and mitigate the adjustment eventually required," Houston asked in his letter.

He also objected to the inclusion of a storm rider in rates to cover extreme weather, which he said pushed the risk of climate change on to ratepayers.

Premier second-guesses Muskrat Falls approval
Houston also second-guessed the board for approving Nova Scotia Power's participation in the Muskrat Falls hydro project in Labrador.

"The fact that Nova Scotians have paid over $500 million for this project with minimal benefit, and no one has been held accountable, is wrong," he said. "It was this board of the day that approved the contracts and entered the final project into rates."

Ratepayers are committed to paying $1.7 billion for the Maritime Link to bring the green source of electricity into the province, while rate mitigation talks in Newfoundland lack public details for their customers.

Although the Maritime Link was built on time and on budget by an affiliated company, only a fraction of Muskrat Falls hydro has been delivered because of ongoing problems in Newfoundland, including an 18% electricity rate hike deemed unacceptable by the province's consumer advocate.

"I find it remarkable that those contracts did not include different risk sharing mechanisms; they should have had provisions for issues in oversight of project management. Nevertheless, it was approved, and is causing significant harm to ratepayers in the form of increased rates."

Houston notes that because of non-delivery from Muskrat Falls, Nova Scotia Power has been forced to buy much more expensive coal to burn to generate electricity.


Opposition reaction
Opposition parties in Nova Scotia reacted to Houston's letter.

NDP Leader Claudia Chender dismissed it as bluster.

"It exposes his Bill 212 as not really helping Nova Scotians in the way that he said it would," she said. "Nothing in the settlement agreement contravenes that bill. But it seems that he's upset that he's been found out. And so here we are with another intervention in an independent regulatory body."

Liberal Leader Zach Churchill said the government should intervene to help ratepayers directly.

"We just think that it makes more sense to do that directly by supporting ratepayers through heating assistance, lump-sum electricity credits, rebate programs and expanding the eligibility for that or to provide funding directly to ratepayers instead of intervening in the energy market in this way," he said.

The premier's office said that no one was available when asked about an interview on Tuesday.

"The letter speaks for itself," the office responded.

Nova Scotia Power issued a statement Tuesday. It did not directly address Houston's claims.

"The settlement agreement is now with the NS Utility and Review Board," the utility said.

"The UARB process is designed to ensure customers are represented with strong advocates and independent oversight. The UARB will determine whether the settlement results in just and reasonable rates and is in the public interest."

 

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