Could Nova Scotia Power revert to public ownership again?
Nova Scotia Power, a utility company that was privatized in 1992 by the Progressive Conservative government of Premier Donald Cameron, is currently facing scrutiny after a massive data breach earlier this year. Some individuals are advocating for the province to repurchase the utility and bring it back under provincial ownership.
In the United States, there have been instances where power utilities have transitioned from private ownership to public ownership. Ursula Schryver, a senior vice-president at the American Public Power Association, which represents publicly owned utilities in the U.S. with over 55 million customers, shed light on the process of returning a utility to public hands.
Schryver highlighted the concept of “municipalization,” where a power utility becomes a public not-for-profit entity. The main advantages of municipalizing a utility include local control, community input on priorities, lower rates, and higher reliability due to crews living and working in the community.
To municipalize a utility, a feasibility study is conducted to assess financial and legal feasibility. Community education and a referendum are essential steps in the process. However, a major challenge is the resistance from the current owner, leading to legal battles and prolonged proceedings.
Despite the potential drawbacks, Schryver emphasized that municipal utilities can prioritize community needs, whether it’s keeping rates low, improving reliability, or investing in renewable energy. Each community can tailor its focus based on local interests and priorities.
The transition to a public power utility may involve initial challenges, but it can lead to long-term benefits for the community. It requires commitment, understanding of the benefits, and a thorough evaluation process.
In conclusion, the discussion around turning Nova Scotia Power back into a public utility involves weighing the pros and cons, considering financial implications, and assessing community priorities. The decision to municipalize a utility requires careful planning and community engagement to ensure a successful transition.
