PaperAge Magazine

Port Hawkesbury Paper Seeks Revised Electricity Rate From Nova Scotia Regulators

Port Hawkesbury Paper - reels of paper Under the four-year plan, Nova Scotia Power would control the supply of electricity to Port Hawkesbury Paper, with the right to direct the company to increase or reduce daily consumption throughout the year.

Feb. 13, 2020 (CBC) - Nova Scotia Power [appeared] before government regulators [Feb 11] seeking approval for a unique discount rate for its largest customer.

Under the four-year plan, Nova Scotia Power would control the supply of electricity to Port Hawkesbury Paper, with the right to direct the company to increase or reduce daily consumption throughout the year.

The rate proposal is supported by the mill, which says it needs to lower its power bill to keep its operation viable.

The rate went into effect on Jan. 1 on a temporary basis, pending the outcome of a hearing this week before the Nova Scotia Utility and Review Board.

The mill accounts for 10 per cent of the provincial electricity load, producing glossy paper used in magazines and catalogs.

Nova Scotia Power says controlling how much electricity the mill uses — and when — will allow it to operate the system much more efficiently, saving other customers $10 million a year until the rate expires in 2023.

Ceding control 'not an easy decision'

In its opening statement that was filed in advance, Port Hawkesbury Paper said ceding the control of its electrical supply to Nova Scotia Power was "not an easy decision" to make, but the company is confident the arrangement will work.

In September 2019, Nova Scotia Power and the mill jointly applied for an "extra large active demand control tariff," which would provide electricity to the mill for about $61 per megawatt hour, well below the full cost of generating the electricity.

The utility said "fully allocating costs" would result in "prices in excess of $80/MWh ... and [would] not [be] financially viable for the mill."


The complete story is available on CBC's website: Nova Scotia's last paper mill seeks new discount electricity rate.

SOURCE: CBC News