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| Closed NewPage Mill-Cape Breton |
The company says it will not proceed with the project if it's required to pay a higher contribution to Nova Scotia Power's fixed cost than proposed in a rate filing.
Pacific West Commercial Corp. made the comment in a document filed recently with the Nova Scotia Utility and Review Board. Under the proposed 7 1/2-year deal, the mill would make a contribution of $2 per megawatt hour to NSPI's fixed cost, as well as pay fuel costs while the utility would also receive dividends if the mill is profitable.
A consultant hired by the province's small business advocate, John Athas, has suggested the contribution to fixed costs should increase from year to year. However, Pacific West says the company would not consider it appropriate to make an investment in the mill unless it has confidence in a ``long-term foundation for success''. It adds it's not near sufficient to get an electricity cost structure that would allow it to ``merely operate competitively.''
Hearings into the proposed load-retention tariff application jointly made by the company and NSPI begin Monday.
