It isn’t the 5 year power rate break they had requested, but Bowater Mersey and NewPage Port Hawkesbury in Nova Scotia will be receiving a 3 year break on their power bills.

The Nova Scotia Utility and Review Board announced their decision this morning in Halifax, amending the load retention rate for the mills. The mills will pay $6.02 per kilowatt hour in the first year starting Jan. 1, 2012, $6.57 in the second, and $6.78 in the third.

Residential power rates will be going up at least 6.1 % for Nova Scotia Power customers, plus a fuel charge.

The board said the mills will get a break on their rates because it is better for the ratepayers to have the mills open than to close because of their high power costs.

The ruling indicates the two mills would save $14 million next year with the new rates. It also indicates other Nova Scotia Power customers would save $20 million by having both mills operating and on the grid next year.

Sources:
Nova Scotia Utility and Review Board (Decision)
Power bills on the rise – Bowater, NewPage given 3-year discount (CBC)
Bowater, NewPage get three-year power break
UARB approves special power rate for struggling mills (Cape Breton Post)
UARB approves amended rate for mills (101.5 The Hawk)