URB receives arguments on NewPage sale

The closing arguments on whether the Utility and Review Board should reopen a Cape Breton Mill at a discounted power rate have been filed.

The deadline was Friday at 4:30.

Pacific West Commercial, the mill's would-be owner, says the biomass generator at the former NewPage mill must operate for the mill to be viable. It's asking the provincial regulator to approve a discount rate or it won't purchase the NewPage Port Hawkesbury operation.

It says a discount power rate would save ratepayers $2 million a year.

The provincial government said the biomass plant must operate because its steady output of power will balance any intermittent wind power.

Nova Scotia Power, which would be a partner in the arrangement,  has been busy weighing the cost of the plant against the amount the mill will contribute toward the project.

Lawyers for the small business advocate, the consumer advocate and the group representing companies like Michelin Tires maintain that reopening the Nova Scotia mill is too risky and ratepayers could end up subsidizing the mill.

One estimate says running the generator at Port Hawkesbury could cost ratepayers more than $7 million a year.

In its final argument, the consumer advocate writes, "by sacrificing other ratepayers to save the mill, the province is abdicating its own responsibility." 

"It is simply unfair for the province to expect the board to execute its legislated duties," wrote the consumer advocate.

In its closing submission, Nova Scotia Power wrote "the board's approval of this application will not ensure the long-term operation of the Port Hawkesbury paper mill. Approval will, however, provide the mill with an opportunity to overcome its current challenges and will allow all other NS Power customers to share in his success."

The owners have requested a decision in two weeks so it can restart the mill in September.