The Carbon Tax / Cap and Trade
Implementation on the new tax will begin in 2019
B.C. to N.S. comparison
At the request of CBC Nova Scotia, Hughes applied the British Columbia model — $30 per tonne of carbon dioxide — to Nova Scotia.
It would add nearly seven cents per litre to the price of gasoline at the pumps in Nova Scotia, he said. It also would increase electricity bills by 1.8 cents per kilowatt hour and 8.85 cents per litre to the cost of home heating oil.
Based on household consumption of 3,000 litres of gasoline, 10,000 kWh and 2500 litres of heating oil, that adds up to an annual cost per household of $612 per year.
Nova Scotia Power's Rate Stability Plan
The 2015-2019 STABILISATION plan is going to end shortly after the carbon tax comes into effect.
We don’t include that in our savings formulas, we work off of historical data.
Consumers will see an increase from the Carbon Tax and be feeling the effects of that when the 2020-2023 STABILISATION Plan will begin and prices rise again.
"Under the FAM, fuel is a direct pass-through cost to customers, meaning customers only pay the actual fuel cost to NS Power. This does not change under the Fuel Stability Plan.
Actual fuel costs will be tracked through the Fuel Stability Plan and trued up at the end of the Rate Stability Period.
In NS Power’s view, tracking fuel costs across the Rate Stability Period and truing up to ACTUALS at the end of that period is the optimal way to ensure rate stability for customers. It holds customer’s whole from a fuel cost perspective, so that even if the total load or fuel costs vary from the estimates, no party will pay more than its actual costs."
The new rates take into account increased costs, coal is a major one. This is a graph showing the coal price increase since 2015 when they would have been creating the 20016-2019 plan.
You have to zoom out a bit to get back to 2016 to see the historical increase in full view.
The price of coal has almost doubled and will be factored into the next Stability Plan.
"Nova Scotians have been paying an indirect carbon tax with the rising cost of electricity," Hughes said. "Electricity has risen by 62 per cent since 2005."
SPEAKING ON UTILITIES EATING THE NEW COSTS...
Companies will be expected to pay for this work themselves. Those costs, along with whatever they may have to pay for exceeding the yet-to-be-determined emission limits, will then be passed along to consumers.
But what that will mean to Nova Scotian families is unclear — and an answer to that question may still be months away.
"We need to find our baseline, we need to set caps and then we'll be able to have a discussion of what the impact will be," said Rankin.