Berwick Electric doing the math to pass on flexible rates

BY NANCY KELLY

Kings County Register

The Berwick Electric Commission (BEC) and its customers will soon feel the affects of a fuel adjustment mechanism (FAM) for which Nova Scotia Power Inc. (NSPI) recently received provisional approval.

The new system will allow NSPI to regulate its prices in accordance with changes to fuel prices without application to the Nova Scotia Utility Review Board. It will be introduced and tested this year in readiness for full implementation in 2009.

BEC superintendent Don Regan said the new billing system means Berwick Electric will have to devise a formula to respond to any price fluctuations and adjustments.

“It will involve some tedious, complicated arithmetic,” to establish new reporting and auditing procedures said Regan, adding “the FAM will necessitate that we develop our own mechanism to adjust our rates in response to NSPI surcharges.”

While little information is available about the FAM and how it will be rolled out, Regan anticipates billing will be adjusted on a two- or three-month cycle.

“At the end of the day, there will a line item added to (BEC) customers’ bill that will reflect any price adjustment” downloaded from NSPI to the local utility. “At this point, we have no way to recover any payment differences that will result from the new system,” concluded Regan.

Regan also recommended commissioners devise a policy to respond to a growing number of unsolicited energy-related proposals being received by BEC.

“We need a change to allow more flexibility to investigate new technologies as we are made aware of them,” explained Regan. The energy technology field is “a growing one,” adding he is receiving substantially more proposals than in previous years.

“There is a lot of new expertise out there, and we need to be able to tap into it,” said Regan.

Commission member John Rainforth agreed Berwick Electric needs to alter its practices to capitalize on advancements in the rapidly evolving energy sector.

“More than ever, we need to act like a business as much as we can.”