NUTTBY - If a proposed Nuttby wind farm fails or sustains cost overruns Nova Scotia Power Inc. customers could be faced with covering the shortfall, warns the consumer advocate.
"The risk of the investment is on the shoulders of ratepayers," John Merrick wrote in his submissions to the Nova Scotia Utility and Review Board.
"If it turns out that the Nuttby project is inefficient or expensive to maintain it is the ratepayers who will pay through rates."
Nova Scotia Power purchased the development rights from EarthFirst Canada Inc. in April after the Calgary firm fell into financial difficulties.
It plans on erecting 22 turbines, constructing a new substation and transmission interconnection at a cost of $120 million.
Now the board has to make a decision on approving the utility's application to begin construction. The board has received written submissions from Avon Group, Cape Breton Explorations Ltd., Nova Scotia's Department of Energy, NewPage Port Hawkesbury Corp. and Bowater Mersey Paper Company Limited, the Municipal Utilities of Nova Scotia Co-operative and Scotia Investments Limited.
"The numbers NSPI uses in their estimates are simply not acceptable as they are unreliably optimistic, and shift all risks onto the ratepayers," wrote Luciano Lisi, president of Cape Breton Explorations Ltd. "If NSPI is certain of their numbers then they can have the project built by their mother company Emera Inc. at a complete risk to their shareholders..."
Some of the submissions also raised questions concerning NSPI's application to be able to resell a portion of the facility, if needed, to comply with Nova Scotia's renewable energy standards.
"(Nova Scotia's Department of Energy) believes that the request for prior approval of a possible divestiture of the Nuttby Mountain wind project is premature," wrote Stephen McGrath.
There is also $14 million in federal grant money that is on the line.
"Obviously, NSPI's estimated energy cost is based upon numerous assumptions and complex projections," McGrath wrote. "It would appear that the cost to ratepayers under NSPI's proposal are quite a bit better than they would have been had the Nuttby Mountain project proceeded as originally conceived in response to the 2007 (request for proposal)."
NSP customers to pay if Nuttby wind project fails, says consumer advocate
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Comments
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- norm
- - March 1st, 2010 at 14:40:00
John Merrick is no folk hero, consumer advocate ,he makes a living as an activist/lobbiest.Let him deliver his press announcements in the advertising media,he can surely afford it.TDN,at least ,try and show balanced journalism--all it takes is to interview someone in position to comment from elsewhere but the fringes.
Could it cost Nova Scotians money to implement this project---possibly,the certainty is there are no better alt energy projects propose as alternatives---the majority of nova Scotian's would prefer to do what it takes to replace the coal fired generaors.Perhaps we could be the proud possesers of a modern CANDU nuclear reactor?
Luciano Lisi,Cape Breton Explorations Ltd.has no problem being partnered with NSPI--so is this sour grapes so he can get more infrastructure money for Green Cape Breton??,after our area loses the 14 million allocated to us??
This back door approach,to try and kill off a reasonable,and proven technology boost to our area is almost deplorable.
Merrick and Lisi should have little say in this area ---their prominence in an article that would affect the readers of this paper directly--should be an outrage to all concerned.
Have your say,don't be silent,lawyers from Halifax and businessmen from Cape b
Breton do not decide what is good for the citizenry of northern n
Nova Scotia!! -
- dave
- - March 1st, 2010 at 14:39:54
of course it will lose money - but hey, we can all feel good about ourselves and sing songs all the way to the poor house.
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- Yo
- - March 1st, 2010 at 14:39:28
and if they profit, what will happen then, it's not likely the profits would be given back to the consumer in any shape or form so if they fail, it should be there own responsibiltiy.
