GPIAtlantic Submission to the 2005 UARB - NSPI Rate Case Hearings

Ronald ColmanNovember, 2005

An Unsustainable System – The Link to Rates & the Environment Extremely high air pollutant

emissions High greenhouse gas emissions High reliance on imported fossil

fuels Increasing demand for electricity

Generation Fuel Mix NSPI

0%

20%

40%

60%

80%

100%

1993 1995 1997 1999 2001 2003

Year

Perc

ent o

f fue

l mix Natural gas

Purchases

Hydro & wind

Oil

Coal

Domestic Fossil Fuels Natural gas: limited reserves,

North American price Coal: NS coal not economic thus

far, high levels of impurity, many environmental impacts, likely fluctuating cost

Renewable Electricity

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

1992 1994 1996 1998 2000 2002 2004

Year

Ren

ewab

le p

ortio

n of

fuel

mix

Decreasing Renewable Energy - NS Power Generating Capacity

Coal19%

Oil46%

Gasoline turbine

13%

Hydro22%

Coal55%Oil & gas

27%

Hydro & wind18%

1979 2003

Electricity Use

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1978 1982 1986 1990 1994 1998 2002

Year

TJ

Agriculture

PublicadministrationCommercial &other institutionalResidential

Industrial

A Conditional Rate Increase Substantial investment in development

of renewable energy sources. NSPI, in cooperation, must actively

develop programs and policies to reduce energy demand.

Investments in pollution reduction from coal plants.

Strategy to address fuel poverty a prerequisite.

SummaryIf the 15% price hike is used only to compensate for higher fossil fuel prices, then GPI Atlantic vigorously opposes the rate increase. This will contribute nothing to the sustainability of Nova Scotia’s energy system and set a precedent for future price hikes that will accompany the inevitable and impending advent of peak oil production and surging world demand for other imported fuels.