As a keen observer of Nova Scotia energy policy I reviewed the @nspowerinc rate application and I have thoughts
#nspoli π§΅π
tl:dr - previous gov't needs to take responsibility for artificially capping investment & utility should be regulated on societal performance #nspoli
#nspoli π§΅π
tl:dr - previous gov't needs to take responsibility for artificially capping investment & utility should be regulated on societal performance #nspoli
Electricity system planning is long-term.
Some accountability for this rate increase rests with former Liberal Premier Stephen McNeil who played politics to hide from rate increase responsibility, which pushed off investments
Some accountability for this rate increase rests with former Liberal Premier Stephen McNeil who played politics to hide from rate increase responsibility, which pushed off investments
That led to caps on energy efficiency programs below cost-effective potential
Right now more insulated homes, lower bills, and fewer GHGs would really come in handy
Right now more insulated homes, lower bills, and fewer GHGs would really come in handy
This message from NS Liberal Party shouldn't be celebrated @IainTRankin
It shows political cowardice. The previous gov't pushed things off for a @TimHoustonNS gov't to deal with.
It shows political cowardice. The previous gov't pushed things off for a @TimHoustonNS gov't to deal with.
https://twitter.com/LiberalPartyNS/status/1487076154892865539?s=20&t=gjCOiXI1bU7qr2dGSrGHoA
Calls for nationalization won't solve the problem of Premiers playing politics with rates and seeking to hide from responsibility. It could very well make it worse.
The real issue is the need for a new energy framework in the province that promotes accountability and equality in the transition to net-zero emissions
Rate of return regulation is outdated. It is designed to help a utility secure investment to build large power plants.
The future is citizen empowering decentralized energy solutions with government funding new transmission.
The future is citizen empowering decentralized energy solutions with government funding new transmission.
My proposal is performance based regulation
Under this framework a utility can receive a modest profit if they deliver what people want. Such as
-lower bills
-reliable electricity
-GHG reductions
-citizen owned renewables
-energy poverty reductions
-customer satisfaction
Under this framework a utility can receive a modest profit if they deliver what people want. Such as
-lower bills
-reliable electricity
-GHG reductions
-citizen owned renewables
-energy poverty reductions
-customer satisfaction
The NSP application makes claims about all of these benefits, but doesn't hold itself accountable to actually achieve any of them
Instead it will lock in a rate and then have an incentive to increase sales, which works against many of these objectives
Instead it will lock in a rate and then have an incentive to increase sales, which works against many of these objectives
Getting NSP on side with energy savings is particularly important
The proposal projects decreased efficiency budgets and does not make the reasonable assumption that we need more efficiency with higher carbon prices and coal phase out
The proposal projects decreased efficiency budgets and does not make the reasonable assumption that we need more efficiency with higher carbon prices and coal phase out
The NSP proposal includes a poison pill for efficiency by making those costs explicit on the bill but hiding all the fossil fuel costs it offsets
This gave Premier McNeil fodder for his opportunistic "efficiency tax" campaign, which created more problems today
This gave Premier McNeil fodder for his opportunistic "efficiency tax" campaign, which created more problems today
A performance framework would also encourage the utility to be an ally in solar sector growth
The utility doesn't like customer solar for the same reason it doesn't like energy efficiency.
It is incented to increase profits through sales, not societal benefits & lower bills.
The utility doesn't like customer solar for the same reason it doesn't like energy efficiency.
It is incented to increase profits through sales, not societal benefits & lower bills.
To figure out a realistic rate, NS could do a full "value of solar" study counting all of the benefits
In some states these analysis show grid benefits as high as 20 cents/kwh, plus 7 cents/kwh in additional societal benefits
acadiacenter.org/resource/nextgβ¦
In some states these analysis show grid benefits as high as 20 cents/kwh, plus 7 cents/kwh in additional societal benefits
acadiacenter.org/resource/nextgβ¦
Bottom line is that NSP's incentives are not align with the net-zero emissions future the province has defined for itself
The province needs a leader that will not play politics with rates, but create a new social bargain for a green, equitable, and efficient economy.
The province needs a leader that will not play politics with rates, but create a new social bargain for a green, equitable, and efficient economy.
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