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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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FERC Capacity Markets face scrutiny as GAO flags inconsistent data on resource adequacy and costs, urging performance goals, risk assessment, and better metrics across PJM, ISO-NE, NYISO, and MISO amid cost-recovery proposals.

Key Points

FERC capacity markets aim for resource adequacy, but GAO finds weak data and urges goals and performance reviews.

✅ GAO cites inconsistent data on resource adequacy and costs

✅ Calls for performance goals, metrics, and risk assessment

✅ Applies to PJM, ISO-NE, NYISO; MISO market is voluntary

Capacity markets may or may not be functioning properly, but FERC can't adequately make that determination, according to the GAO report.

"Available information on the level of resource adequacy ... and related costs in regions with and without capacity markets is not comprehensive or consistent," the report found. "Moreover, consistent data on historical trends in resource adequacy and related costs are not available for regions without capacity markets."

The review concluded that FERC collects some useful information in regions with and without capacity markets, but GAO said it "identified problems with data quality, such as inconsistent data."

GAO included three recommendations, including calling for FERC to take steps to improve the quality of data collected, and regularly assess the overall performance of capacity markets by developing goals for those assessments.

"FERC should develop and document an approach to regularly identify, assess, and respond to risks that capacity markets face," the report also recommended. The commission "has not established performance goals for capacity markets, measured progress against those goals, or used performance information to make changes to capacity markets as needed."

The recommendation comes as the agency is grappling with a controversial proposal to assure cost-recovery for struggling coal and nuclear plants in the power markets. So far, the proposal would only apply to power markets with capacity markets, including PJM Interconnection, the New England ISO, the New York ISO and possibly MISO. However MISO only has a voluntary capacity market, making it unclear how the proposed rule would be applied there. 

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IESO Capacity Auctions will competitively procure resources for Ontario electricity needs, boosting reliability and resource adequacy through market-based bidding, enabling demand response, energy storage, and flexible supply to meet changing load and regional grid conditions.

Key Points

A competitive, technology-neutral auction buys capacity at lowest cost to keep Ontario's grid reliable and flexible.

✅ Market-based procurement reduces system costs.

✅ Enables demand response, storage, and hybrid resources.

✅ Increases flexibility and regional reliability in Ontario.

The Independent Electricity System Operator (IESO) is introducing changes to Ontario's electricity system that will help save Ontarians about $3.4 billion over a 10-year period. The changes include holding annual capacity auctions to acquire electricity resources at lowest cost that can be called upon when and where they are needed to meet Ontario electricity needs. 

Today's announcement marks the release of a high level design for future auctions, with changes for electricity consumers expected as the first is set to be held in late 2022.

"These auctions will specify how much electricity we need, and introduce a competitive process to determine who can meet that need. It's a competition among all eligible resources, and it's the Ontario consumer, including industrial electricity ratepayers, who benefits through lower costs and a more flexible system better able to respond to changing demand and supply conditions," says IESO President and CEO Peter Gregg.

In the past decade, electricity supply was typically acquired through very prescriptive means with defined targets for specific types of resources such as wind and solar, and secured through 20-year contracts.  While these long-term commitments helped Ontario transform its generation fleet over the last decade, electricity cost allocation also played a role, but longer term contracts provide limited flexibility in dealing with unexpected changes in the power system. 

"Imagine signing a 20-year contract for your cable TV service. In five years' time, electricity rates could be lower, new competitors may have entered the market, or entirely new and innovative platforms and services like Netflix may have emerged. You miss out on opportunities for improvement by being locked-in," says Gregg.

Provincial electricity demand has traditionally fluctuated over time due to factors like economic growth, conservation and the introduction of generating resources on local distribution systems, with occasional issues such as phantom demand affecting customers' costs as well. Technological changes are adding another layer of uncertainty to future demand as electric vehicles, energy storage and low-cost solar panels become more common.

"Our planners do their best to forecast electricity demand, but the truth is there's no such thing as certainty in electricity planning. That's why flexibility is so important. We don't want Ontarians to have to pay more on the typical Ontario electricity bill for electricity resources than are needed to ensure a reliable power system that can continue to meet Ontario's needs," says IESO Vice President and COO Leonard Kula.

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West and Central Africa Electricity Access hinges on utility reform, renewable energy, off-grid solar, mini-grids, battery storage, and regional grid integration, lowering costs, curbing energy poverty, and advancing SDG7 with sustainable, reliable power solutions.

Key Points

Expanding reliable power via renewables, grid trade, and off-grid systems to cut energy poverty and unlock inclusive growth.

✅ Utility reform lowers costs and improves service reliability

✅ Regional grid integration enables clean, least-cost power trade

✅ Off-grid solar and mini-grids electrify remote communities

As commodity prices soar and leaders around the world worry about energy shortages and prices of gasoline at the pump, millions of people in Africa still lack access to electricity.  One-half of the people on the continent cannot turn on a fan when temperatures go up, can’t keep food cool, or simply turn the lights on. This energy access crisis must be addressed urgently.

In West and Central Africa, only three countries are on track to give every one of their people access to electricity by 2030. At this slow pace, 263 million people in the region will be left without electricity in ten years.  West Africa has one of the lowest rates of electricity access in the world; only about 42% of the total population, and 8% of rural residents, have access to electricity.

These numbers, some far too big, others far too small, have grave consequences. Electricity is an important step toward enhancing people’s opportunities and choices. Access is key to boosting economic activity and contributes to improving human capital, which, in turn, is an investment in a country’s potential.  

Without electricity, children can’t do their schoolwork at night. Businesspeople can’t get information on markets or trade with each other. Worse, as the COVID-19 pandemic has shown so starkly, limited access to energy constrains hospital and emergency services, further endangering patients and spoiling precious medicine.  

What will it take to power West and Central Africa?  
As the African continent recovers from COVID-19 impacts, now is the critical time to accelerate progress towards universal energy access to drive the region’s economic transformation, promote socio-economic inclusion, and unlock human capital growth. Without reliable access to electricity, the holes in a country’s social fabric can grow bigger, those without access growing disenchanted with inequality.  

Tackling the Africa region’s energy access crisis requires four bold approaches. 

First, this involves making utilities financially viable. Many power providers in the region are cash-strapped, operate dilapidated and aging generation fleet and infrastructure. Therefore, they can’t deliver reliable and affordable electricity to their customers, let alone deliver electricity to those that currently must rely on inadequate alternatives to electricity. Overall, fewer than half of the utilities in Sub-Saharan Africa recover their operating costs, resulting in GDP losses as high as four percent in some countries.

Improving the performance of national utilities and greening their power generation mix is a prerequisite to lowering the costs of supply, thus expanding electricity access to those currently unelectrified, usually lower-income and often remote households. 

In that effort — and this a critical second point — West and Central African countries need to look beyond their borders and further integrate their national utilities and grids to other systems in the region. The region has an abundance of affordable clean energy sources — hydropower in Guinea, Mali, and Cote d’Ivoire; high solar irradiation in the Sahel — but the regional energy market is fragmented. 

Without efficient regional trade, many countries are highly dependent on one or two energy resources and heavily reliant on inefficient, polluting generation sources, requiring fuel imports linked to volatile international oil prices.

The vision of an integrated regional power market in countries of the Economic Community of West African States (ECOWAS) is coming a step closer to reality thanks to an ambitious program of cross-border interconnection projects. If countries take full advantage of this grid, the share of the region’s electricity consumption traded across borders would more than double from 8 percent today to about 17 percent by 2030. Overall, regional power trade could lower the lifecycle cost of West Africa’s power generation system by about 10 percent and provide greener energy by 2030. 

Third, electrification efforts need to be open to private sector investments and innovations, such as renewables like solar energy and battery storage, which have made a tremendous impact in enabling access for millions of poor and underserved households.  Specifically, off-grid solar systems and mini-grids have become a proven reliable way to provide affordable modern electricity services, powering homes in rural communities, healthcare facilities, and schools.

Burkina Faso, which enjoys one of the best solar radiation conditions in the region, is a successful example of leveraging the transformative impact of solar energy and battery storage. With support from the World Bank, the country is deploying solar energy to power its national grid, as well as mini-grids and individual household systems. Solar power with battery storage is competitive in Burkina Faso compared to other technologies and its government was successful in attracting private sector investments to support this technology.

Last, achieving universal electricity access will involve significant commitment from political leaders, especially developing policies and regulations that can attract high-quality investments.  

A significant step in that direction was achieved at the World Bank’s 2020 Annual Meetings with a commitment to set up the Powering Transformation Platform in each African country. Through the platform, each government will set their country-specific vision, goals and metrics, track progress, and explore and exchange innovative ideas and emerging best practices according to their own national energy needs and plans. 

This platform will bring together the elements needed to bring electricity to all in West and Central Africa and help attract new financing.

Over the last 3 years, the World Bank has doubled its investments to increase electricity access rates in Central and West Africa.  We have committed more than $7.8 billion to support 40 electricity access programs, of which more than half directly support new electricity connections. These operations are expected to provide access to 16 million people. The aim is to increase electricity access rates in West and Central Africa from 50 percent today to 64 percent by 2026.

However, World Bank’s financing alone is not enough. Our estimates show that nearly $20 billion are required for universal electrification across Sub-Saharan Africa, aligning with calls to quadruple power investment to meet demand, with about $10 billion annually needed for West and Central Africa. 

Closing the funding gap will require mobilizing traditional and new partners, especially the private sector, which is willing to invest if enabling conditions are in place, as well as philanthropic capital, that can fill in the space in areas not yet commercially attractive. The World Bank is ready to play a catalytical role in leveraging new investments. 

This is vital as less than a decade remains to reach the 2030 SDG7 goal of ensuring electricity for all through affordable, reliable, and modern energy services. As headlines worldwide focus on soaring energy prices in the developed world, we cannot lose sight of the vast populations in Africa that still cannot access basic energy services. This is the true global energy crisis.  

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Ontario Electricity Relief outlines an extended disconnect moratorium, potential time-of-use price changes, and Ontario Energy Board oversight to support residential customers facing COVID-19 hardship and bill payment challenges during the emergency in Ontario.

Key Points

Plan to extend disconnect moratorium and weigh time-of-use price relief for residential customers during COVID-19.

✅ Extends winter disconnect ban by 3 months

✅ Considers time-of-use price adjustments

✅ Requires Ontario Energy Board approval

The Ontario government is preparing to announce electricity relief for residential electricity users struggling because of the COVID-19 emergency, according to sources.

Sources close to those discussions say a decision has been made to lengthen the existing five-month disconnect moratorium by an additional three months.

Separately, Hydro One's relief fund has offered support to its customers during the pandemic.

News releases about the moratorium extension are currently being drafted and are expected to be released shortly, as the pandemic has reduced electricity usage across Ontario.

Electricity utilities in Ontario are currently prohibited from disconnecting residential customers for non-payment during the winter ban period from November 15 to April 30.

The province is also looking at providing further relief by adjusting time-of-use prices, such as off-peak electricity rates, which are designed to encourage shifting of energy use away from periods of high total consumption to periods of low demand.

For businesses, the province has provided stable electricity pricing to support industrial and commercial operations.

But that would require Ontario Energy Board approval and no decision has been finalized, our sources advise.

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BC Hydro Trades Electrical Safety addresses electric contact incidents among trade workers, emphasizing power line hazards, overhead lines clearance, the 3 m rule, jobsite planning, and safety training to prevent injuries during spring and summer.

Key Points

BC Hydro Trades Electrical Safety is guidance and training to reduce power-line contact risks for trade workers.

✅ Stay at least 3 m from overhead power lines and equipment

✅ Plan worksites and spot hazards before starting tasks

✅ Use BC Hydro electrical awareness training near electricity

A BC Hydro report finds serious electrical contact incidents are more common among trades workers, and research shows this is partly due to a knowledge gap in the electricity sector in Canada.

Trade workers were involved in more than 60 per cent of electric contact incidents that led to serious injuries over the last three years, according to BC Hydro.

One-in-five trade workers have also either made contact or had a close call with electric equipment.

A recent worksite electrocution case underscores the consequences of contact.

“New research finds many have had a close call with electricity on the job or have witnessed unsafe work near overhead lines or electrical equipment,” BC Hydro staff said in the report.

“A gap in electrical safety knowledge is a contributing factor in most of these incidents.”

Most electrical contact incidents take place in the spring and summer, when trade workers are working outdoors and are working in close proximity to power lines.

BC Hydro offered tips for trades workers who may work closely to possible electrical contact points:

• Look up and down – Observe the site beforehand and plan work so you can avoid contact with power lines
• Stay back – You and your tools should stay at least 3 m away from an overhead power line
• Call for help – If you come across a fallen power line, or a tree branch or object contacts a line—stay back 10 metres and call 911. Never try and move it yourself. If you must work closer than 3 m to a power line at your worksite, call BC Hydro before you begin.
• Learn about the risks – BC Hydro offers in-person and online electrical awareness training, such as arc flash training, for anyone who works near electricity.

The report found that 38 per cent of trades workers who participated in the report said they only feel “somewhat informed” about safety measures around working near electricity and 71 per cent were unable to identify the correct distance they should be away from active power lines or electrical equipment.

BC Hydro said trade workers should participate in its electrical awareness training courses, including arc flash training, to make sure all safety measures are taken.

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