Ottawa has finalized a $500-million bailout to help Nova Scotia Power keep rates from skyrocketing due to delivery delays of Muskrat Falls electricity.
Emera, the parent company of Nova Scotia Power, confirmed the deal—first announced Sept. 16 by federal Natural Resources Minister Jonathan Wilkinson—in a news release Tuesday.
The loan guarantee will reduce the amount the utility needs to recoup from customers for higher-priced fuel purchased due to the delivery delays.
Wilkinson has said without the loan guarantee, average power rates might have gone up by close to 20 per cent over several years, while Nova Scotia Power CEO Peter Gregg has said he expects the loan would keep rate increases to “around the rate of inflation.”…