Unions of Nova Scotia Municipalities

LED Streetlight Update

The UARB has approved the settlement agreement reached between NSPI, UNSM and HRM regarding LED streetlights. The agreement sets LED streetlight rates for the first time. In the original filing, NSPI proposed an increase in the energy rate for LED streetlights, reflecting an investment of $100 million to replace the existing streetlights with LED technology within a five year period. The rate design to switch to LED fixtures reflected a lower energy charge due to the fact that LED fixtures reduce energy consumption by 50 to 55 per cent. However, this is offset by an increase in capital costs due to the more expensive fixture. It also included and extra surcharge of $23 million for a “stranded asset”—the useful life left in existing lights.

As a result of the negotiations, NSPI adjusted the original application to reflect more current capital LED costs—resulting in reduced costs of 15 per cent. As well, the settlement agreement reduced the stranded asset book value to $12 million, which will be further depreciated during the phase-in period. The energy rate will now be phased in over a two-year period resulting in an overall unmetered rate reduction of 3.4 per cent in the first year. The new LED rate benefits from the elimination of a maintenance charge. The LED fixtures are anticipated to be zero to low maintenance over the expected 20 year life.

There are some issues yet to be resolved. UNSM and HRM are continuing to work on this file to ensure the conversion is conducted in a manner that maximizes the benefits to Nova Scotia municipalities.

Our thanks to HRM and Al Dominie who worked so hard on this file!

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