Dominoes
Nova Scotia Power Inc recently announced a new agreement to purchase renewable energy from the Amherst Wind Energy Project. The project is expected to produce about 100 gigawatt hours of energy annually by 2007. That's enough to supply 10,000 homes. The turbines will be situated alongside the Trans-Canada Highway on the Tantramar Marshes.Including this latest project, NSPI has awarded contracts for 100 megawatts of wind energy from independent power producers in the last 16 months.
I applaud NSPI for their green energy efforts and recognizing wind as a cost-effective energy source, that is also a clean, domestic, renewable resource. Green energy also has the potential to help wean North America from its dependence on foreign fuel sources.
(Who needs to drill in the ANWR for independance? :p)
However, this won’t amount to any real dollar savings for consumers.
Especially considering that big increases in the price of oil, coal and natural gas (which have the shit taxed out of them) have prompted NSPI to request an average 15% increase in electricity prices for 2006.
"Everyone - from our customers in Nova Scotia to electrical utilities throughout North America - is feeling the effect of rising global energy prices," said Chris Huskilson, President and Chief Executive Officer of Nova Scotia Power.
"With fuel our single biggest expense as a utility, it's impossible to avoid making this rate request, no matter how much we would prefer not to."
I suppose I can understand that Chris. But Nova Scotians on low and fixed incomes will have an especially difficult time dealing with the impact of the recent increase in residential electricity rates, let alone an additional 15%. I would expect a very cold winter for many families and individuals.
Darrell Dexter and the Nova Scotia NDP recently launched a petition that calls for no more power rate increases until NSPI and the government help families save at least 15% on their electricity bills.
"We know the best way to reduce energy costs is to reduce the amount of energy Nova Scotians use. Energy conservation isn’t a new idea, but it is one that has been gaining momentum across Canada as the price of fossil fuels spiral out of control." Says Dexter.
And he makes an excellent point. Initiatives are already underway in other provinces and territories to conserve energy, including government agencies committed to energy conservation, sales tax rebates on the purchase of energy efficient appliances, and monitoring devices that provide real-time usage data and actual dollar cost for appliance use.
I’m trying desperately to understand the burden fuel costs might have on a corporation like NSPI. And yet I fail to figure why the burden of such costs must again fall to consumers. It’s like a bloody game of Dominoes and Nova Scotians are standing smack below the last one.
Last December, the Nova Scotia Government and its universities signed a Memorandum of Understanding (MOU), capping tuition increases at 3.9 per cent each year.
The agreement states that the province will not levy new taxes or charges. The council of Nova Scotia University Presidents and the Association of Atlantic Universities views the increase in power rates as an additional charge in part by the province and are consequently preparing to increase tuition rates above the 3.9 percent cap.
I suppose I am in no position to complain, The MOU tuition cap excluded fees for students in medicine, dentistry and law, which are to increase 9.28 per cent in 2005-2006, as approved by the Dalhousie Board of Governors last April. (How else would a university componsate for any losses a new pay contract might create?) International student, differential fees, also excluded from the cap will increase $810.
And the trend continues. Recently the Dalhousie University Bookstore has been told by the Canada Customs and Revenue Agency that it must now charge HST on all books that include a CD, CD-ROM or pin number that gives access to a website.
Anyway, all this leaves me trying to figure, why are the big guys like Nova Scotia Power Inc and the Association of Atlantic Universities so incapable of cutting a few losses like the rest of us? Do simple economics not ring clear to them? If we’re spending money we barely even have on fuel, or power, or school, (or all of the above) how do they suppose this will affect the economy and their rear ends (when it all comes back to kick em’ there)?
Memorandum of Understanding
NDP Petition


