N.S. Power says rates to rise 4.2 per cent over three years to cover fuel costs

HALIFAX – Nova Scotia Power says it expects to hike rates 4.2 per cent in the next three years, to cover fuel costs.

The utility (TSX.EMA) says it expects the so-called fuel cost adjustments will be about 1.4 per cent annually to 2019, about $2 per month for the average residential customer.

Nova Scotia Power’s expenses are regulated in two divisions by the Nova Scotia Utility and Review Board, with fuel costs assessed under the fuel adjustment mechanism.

The company says it has kept its other costs, including labour, equipment and supplies, under control, meaning it doesn’t have to apply for increased fees to cover those expenses.

The plan includes integrating the first two years of Maritime Link costs into power rates.

The Maritime Link is the subsea transmission line being constructed between Newfoundland and Cape Breton, which will deliver hydroelectricity from Muskrat Falls in Labrador.