Updated: Pacific West Commercial Corp. reaches 7-year deal with Nova Scotia Power
The Port Hawkesbury paper mill is one step closer to reopening now that its new owner, Pacific West Commercial Corp., has reached a seven-year tentative energy agreement with Nova Scotia Power.
The tentative agreement will be submitted to the Nova Scotia Utilities and Review Board for approval.
The agreement will see Nova Scotia Power provide the mill with hourly power rate projections a week in advance so the plant can decide how much of its facility to operate.
The tentative agreement creates a partnership between the mill and Nova Scotia Power. If approved, Nova Scotia Power will hold both preferred and common shares in the mill.
Nova Scotia Power will receive dividends reflecting the value of the energy used by the mill. Those payments will also include a $2 per megawatt hour contribution to the utility’s fixed costs.
Robin McAdam, Nova Scotia Power’s executive vice-president of customer services, said the utility would have a 30% profit participation rate in the mill.
Nova Scotia Power is confident that this agreement will prevent their other customers (including households) in the province from having to subsidize the the mill.
The approval will take approximately 3-4 months. Some aspects of the agreement will require approval from the Canada Revenue Agency.
Tentative energy deal reached for idled paper mill in Cape Breton (The Canadian Press)
Stern Partners, NSP officials reach agreement on power for mill (101.5 The Hawk)
NewPage buyer reaches N.S. Power deal (CBC)
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