Mahone Bay seeks 34 per cent increase in power rates

The Town of Mahone Bay is asking its residents to pay 34 per cent more for electricity as of Jan. 1, 2023. 

If the application is approved by Nova Scotia's Utility and Review Board (UARB), it will be the first power hike the town has had in 15 years.

"One of the options is to defer the increase and spread it out over five or six years," said Mahone Bay Mayor David Devenne. "But at some point, the piper has to be paid."

Mahone Bay is one of six towns in the province that opted to maintain its own utility rather than let Nova Scotia Power be the main supplier. 

Devenne said since 2001, the town has been able to purchase power from the cheapest source and then resell it to residents. 

For the past four years, Mahone Bay purchased 60 per cent of the town's overall power supply from N.B. Power. The remaining 40 per cent came from a wind farm in Ellershouse it co-owns with Berwick and Antigonish.

N.B. Power contract expires soon

Come January, much of that will change, including an end to the contract with N.B. Power. 

Devenne says when they searched for a new power supply, Nova Scotia Power Inc. was offering the cheapest rate, although it's still much more than the people in Mahone Bay are used to paying..

 "So we really don't have much choice but to buy it from NSPI because right now as of the Jan. 1, they are the least expensive," Devenne said.

Nova Scotia Power will charge six per cent more to transport wind power from the Ellershouse wind farm — through its grid — to Mahone Bay. 

'Internal cost increases'

All combined, the new arrangement with Nova Scotia Power will amount to a 28 per cent increase in power bills. 

The remaining six per cent will cover what the town calls its own "internal cost increases."

Devenne says it's urgent the town gets the request for the increase into the UARB as soon as possible in order to be able to cover the new costs by the Jan. 1 deadline.

Blow to small business

"The bottom line, unfortunately, is that the cost of providing electricity is markedly increased," he says. "Council is looking at whether there are any opportunities — particularly for low-income citizens — that we may be able to provide some relief."

It all comes as a shock to the operators of a local brewery and pub. 

Andrew Tanner, one of the owners of the Saltbox Brewing Company, just found out about the proposed increase on Wednesday.

Other cost increases

"It's certainly a significant expense that we'll be facing," Tanner said. "Especially where we're potentially going into a recession where we expect the public — our customers — who may be looking at the trimming of their own expenses, meaning not buying as much product from us as they normally would."

Tanner says after adjusting for increase in the costs of grain and hops, the cost of a pint is already about as high as most people are willing to pay. He's not sure how Saltbox will be able to absorb another increase.

"My guess is that it probably won't go through as proposed," Tanner said. "The UARB will probably react somewhat negatively to such a huge jump."