Nova Scotia Power customers to get money back over Muskrat Falls delays

Nova Scotia Power customers will be getting some money back over the next three years as a result of the delays in completing the Nalcor-owned Muskrat Falls generating station in Labrador.

The Nova Scotia Utility and Review Board had given NSP Maritime Link Inc., a subsidiary of Emera Inc., approval to charge Nova Scotia Power and its customers for costs related to the construction of the Maritime Link — the transmission system to get the power from Muskrat Falls to Nova Scotia.

The Maritime Link is expected to be complete by the end of this year, on time and on budget, however power from Muskrat Falls isn't expected to flow until 2020 at the earliest.

Nova Scotia Power customers are already being charged for the Maritime Link as part of a three-year rate stability plan for 2017-2019. 

However, the board has now ruled that $105 million in costs should not be recovered yet, and as a result ratepayers should receive an annual credit on their power bills over the next three years. The actual credit will vary by customer class.

The first credit is to be issued by April 30, 2018.

'Significant delays'

In its decision Monday, the review board said it was concerned about construction delays at the Labrador hydroelectric project and NSP Maritime Link Inc.'s "apparent lack of insight on what is happening at Muskrat Falls."

"Essentially, NSP Maritime Link appeared to learn about the delay contemporaneous with it being announced publicly, yet at the same time its representatives sit on joint committees with representatives of Nalcor dealing with this project. The lack of insight is troubling to the board."

The board said the Nova Scotia block of power was supposed to be flowing from Muskrat Falls at the same time the Maritime Link is completed, but for now Nova Scotia ratepayers "are not getting what they bargained for."

Hydro project costs $12.7B

In June, it was announced the price tag for the Muskrat Falls project had reached $12.7 billion.

That's up from an estimate last year of $11.7 billion and is about $5 billion higher than when the former Newfoundland and Labrador Progressive Conservative government approved Muskrat Falls five years ago.

Nalcor Energy CEO Stan Marshall took over as head of the Crown corporation last year after the governing Liberals criticized oversight. He said at the time the megaproject was a colossal mistake that he'd try to fix.

At the time, he said 75 per cent of construction was done.