Economy, conservation to drive down energy demand

Nova Scotia Power predicts the demand for electricity will drop in the next few years due to declining business activity and energy-efficiency measures.

The power company's updated plans are contained in a report filed with the government regulator on Monday.

The company says it expects demand for power will drop by 1.5 per cent each year for the next decade — a reversal of the two per cent growth it predicted just two years ago.

Rick Janega, Nova Scotia Power's chief operating officer, said a lot has changed since the recession began and power rates climbed.

"It's related to some of the economic factors that we're seeing this year, and secondly, the small decrease in energy utilization attributed to people's choices for energy conservation," he said.

Nova Scotia Power plans to spend between $23 million and $80 million each year on programs designed to encourage customers to use less energy.

None of the four coal-fired plants are expected to close. However, the power company intends to burn less coal by replacing 10 per cent with waste wood, or biomass.

The blueprint also calls for the company to keep working with New Brunswick on building a second transmission line so that Nova Scotia can choose between importing power or building another plant.

"As we approach 2018, it would be dependent on whether Lower Churchill has developed and is economic for Nova Scotia or whether or not natural gas may be more economic to build a plant here in Nova Scotia and use a resource that's here," said Janega.

Janega stresses that this is merely a plan and no one can predict the price of natural gas or how the regional power grid will develop.

The document filed with the Nova Scotia Utility and Review Board doesn't deal with the impact on power bills.