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NewPage Port Hawkesbury power deal approved by review board

The Nova Scotia Utility and Review Board has approved a complex deal between Nova Scotia Power and Pacific West Commercial, the proposed buyer of the idled NewPage Port Hawkesbury mill in Point Tupper, N.S.

The Nova Scotia Utility and Review Board has approved a complex deal between Nova Scotia Power and Pacific West Commercial, the proposed buyer of the idled NewPage Port Hawkesbury mill in Point Tupper, N.S.

As explained by the Chronicle Herald newspaper on Aug. 20, “the mill operator must pay all costs of providing power to the mill. It will also contribute at least $2 million per year to the fixed rate of maintaining the province’s power grid, and twice that if the mill is profitable enough.”

In its decision, the Utility and Review Board stated that is was satisfied that the mill has a need for a reduced electricity rate to re-open and be viable in the long term.

The Board also noted that “some contribution to fixed costs is better than the other ratepayers having to bear all of the costs.”

The agreement also provides Nova Scotia Power with a 30% ownership stake in the mill, and stipulates that the provincial utility can take payments as dividends. The deal is contingent upon approval of this dividend component by the Canada Revenue Agency.