Nova Scotia Power files plan to lower financing costs and help reduce future rate increases

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeBusiness Wire News ReleasesPMN Press ReleasesThis section is The content in this section is supplied by Business Wire for the purposes of distributing press releases on behalf of its clients. Postmedia has not reviewed the content. by Business Wire Nova Scotia Power files plan to lower financing costs and help reduce future rate increasesAuthor of the article:HALIFAX, Nova Scotia — Nova Scotia Power has filed an application with the Nova Scotia Energy Board for a new way to finance costs tied to the province’s changing electricity system. If approved, the plan would reduce pressure on customer rates by lowering borrowing costs and spreading repayment over a 30-year period.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountOriginally proposed and supported as part of Nova Scotia Power’s most recent General Rate Application, the proposed plan would allow up to $1 billion in eligible costs to be financed using a lower-cost method called securitization. Securitization is a proven financial tool that has been used in other jurisdictions to lower costs for customers by enabling lower interest rates and longer repayment terms.This advertisement has not loaded yet, but your article continues below.The filing follows a framework developed by the Province of Nova Scotia to help manage costs associated with the energy transition for the benefit of customers. Eligible costs include the remaining value of certain coal-related assets due to be retired as part of the energy transition, fuel used to generate electricity, costs to establish the Nova Scotia Independent Energy System Operator, and other deferred expenses.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThese existing expenses are already part of what it costs to operate and transition the electricity system. The proposed securitization approach changes how those costs are financed, allowing for lower-cost borrowing to be accessed and used to help reduce the impact on customers as the system changes. Without this plan, these costs would be funded at higher interest rates. As a result, the proposed framework is expected to save customers approximately $265 million over the full 30-year repayment period.If the application is approved, the lower-cost debt would be repaid through a separate line item on power bills, called a rider, beginning in 2027. For residential customers, the rider would add 2.9% in 2027. Combined with the previously approved 3.9% rate increase for residential customers for 2027, the total increase would be 6.8% for residential customers. Across all customer groups, the new rider would average 3.3%.The Nova Scotia Energy Board will review the application and determine whether the proposed financing plan is in the best interest of customers.Forward Looking InformationThis news release contains forward-looking information and forward looking statements within the meaning of applicable securities laws (collectively, “forward-looking information”) with respect to Nova Scotia Power, including without limitation, statements about its expectations regarding: lower financing costs and reduced future rate increases through securitization; cost savings to customers of approximately $265 million over a 30-year repayment period; and new rider amounts for each customer group and the average rider for all customer groups. Forward-looking information is typically identified by words such as “anticipate,” “expect,” “intend,” “plan,” “target,” “believe,” “forecast,” “estimate,” “will,” “may,” “should,” and similar expressions suggesting future outcomes. Undue reliance should not be placed on this forward-looking information, which applies only as of the date hereof. By its nature, forward-looking information requires Nova Scotia Power to make assumptions and is subject to inherent risks and uncertainties. These statements reflect Nova Scotia Power management’s current beliefs and are based on information currently available to Nova Scotia Power management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward- looking information will not prove to be accurate, that Nova Scotia Power’s assumptions may not be correct and that actual results may differ materially from those expressed or implied by such forward-looking information. The forward-looking information in this news release is made only as of the date hereof, and except as required by law, Nova Scotia Power disclaims any intention or obligation to update or revise any forward-looking information as a result of new information, future events or otherwise. Additional detailed information about these assumptions, risks and uncertainties is included in Nova Scotia Power’s securities regulatory filings, including under the heading “Enterprise Risk and Risk Management” in Nova Scotia Power’s annual Management’s Discussion and Analysis, and under the heading “Principal Financial Risks and Uncertainties” in the notes to Nova Scotia Power’s annual and interim financial statements, which can be found on SEDAR+ at www.sedarplus.ca.This advertisement has not loaded yet, but your article continues below.Nova Scotia Power has had a presence in communities across Nova Scotia for over a century. As the primary electricity provider in the province, the company is regulated by the Nova Scotia Energy Board and provides generation, transmission and distribution of electrical power to approximately 550,000 customers. This includes residential, commercial, and industrial customers across Nova Scotia. With 2,200 dedicated employees, the team at Nova Scotia Power works every day to provide safe, reliable service to customers in every corner of the province. Their focus is on engaging with communities about the important work being done to meet the evolving energy needs of Nova Scotians while supporting the exciting growth and development in the region. Nova Scotia Power Inc. is a wholly owned subsidiary of Emera Inc. (TSX/NYSE-EMA). Learn more at www.nspower.ca.View source version on businesswire.com: Media Contact (Nova Scotia Power): This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.