Local wind exploration company objects to UARB decision
SYDNEY — The province’s energy regulator has approved a new schedule of rates for municipalities looking to purchase some or all of their electricity from non-regulated suppliers, over the objections of Cape Breton Explorations Ltd.
The Utility and Review Board issued its ruling Tuesday, following a public hearing in December.
In 2007, an act came into effect that opened the Nova Scotia electricity market for wholesale competition. Nova Scotia Power Inc.’s municipal class customers are now eligible to purchase some or all of their electricity requirements from suppliers other than NSPI. None of the customers have selected that option but they did ask that tariffs applicable to the wholesale market be developed by NSPI.
After discussions with municipal class customers and renewable energy stakeholders, the province asked that the rates be developed and brought forward for UARB approval, the decision notes. NSPI then worked with stakeholders to reach an understanding of the needs of customers, the potential effects on other customers and to prepare an application for UARB approval.
NSPI and stakeholders reached agreement in a number of areas. The only party to oppose the settlement agreement was Cape Breton Explorations Ltd., a local wind exploration company.
At December’s hearing, Luciano Lisi of Cape Breton Explorations Ltd. raised concerns about NSPI’s continued market dominance. At the hearing, Lisi argued this is a small but important first step in opening the market and that it’s paramount for the regulator to make the correct decisions.
“If by opening of the market, we mean NSPI is all things to all people forever, then let’s say it openly. The monopoly will be preserved, and if ratepayers don’t like it, tough,” Lisi said.
He asked that the application either be rejected or approved on the condition that municipal utilities would only be able to use the rate tariff if they were able to prove to the UARB that renewable energy independent producers could not supply all the services required.
“But if we genuinely believe that a balance can be achieved, then this is a good opportunity to make positive changes,” Lisi said. “Send a signal to the utilities, to NSPI, ‘We thank you for following up on the province’s request, but we want you to allow others to step into the breach.”
Lisi argued that utilities, to serve ratepayers better, should go to the marketplace and ask for proposals.
The UARB decision notes that as municipalities start the process of purchasing electricity from non-regulated suppliers, they require a back-stopping arrangement to be in place that facilitates their ability to transfer to another supplier, yet at the same time ensure their customers reliable service.
“As the wholesale market matures, there may well be a sufficient number and diversity of independent suppliers that this service by NSPI may no longer be needed,” the decision reads. “As was pointed out repeatedly in the hearing, it is open to the municipal utilities to take this service or not, as their needs require. If, as the market evolves, companies such as (Cape Breton Explorations) can supply these services at a price more favourable than NSPI, while meeting the municipal utilities’ reliability needs, then the municipal utilities are obviously free to contract with companies other than NSPI.”
The UARB accepted that the tariffs set out in settlement agreement reflect the context of the state of the market as it currently exists.
Nancy King
6 January 2009
Tags: Wind power, Wind energy
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