FAQs

The Riverport Electric Light Act is over a century old. The Commission adheres as faithfully as is practical to this legislation, understanding that some provisions of the Act have become outdated.

The most recent audited financial statements are available on the Commission’s website (riverportelectric.com). Staff can make themselves available as needed to RELC customers with questions concerning the statements or approved budget.

There are currently 890 customers in RELCs territory.

There are currently 34 solar customers in RELCs territory (3.8% of the customer base).

According to the Riverport Electric Light Act:

Right to vote 

s15.   At all public meetings to be held under this Act every owner of property within the district who is duly qualified to vote thereon at the date of any such meeting for the election of a Municipal Councillor for the Municipality of Lunenburg, shall be an elector, and the right of voting shall be restricted to such electors.

The Riverport Electric Light Act anticipates that votes will be carried by a majority of those present at a duly advertised meeting and the Commission has made every effort to adhere to this legislative requirement. Preparation of a list of electors was deemed to be an unnecessary and costly process, whereas all those present who elect to participate in voting at the meeting are considered to be attesting to their eligibility (this was outlined at the AGM and will be outlined again at the special meeting) and attendees will be required to sign in and indicate thereon whether they are eligible to vote. This record can then be used to determine the number of eligible voters at the meeting. Furthermore, the Municipal Clerk cannot provide a list of eligible electors since this information is returned to the Province after a Municipal election. Attendance at the meeting is considered necessary for voting, and per the legislation it is a majority of those present and eligible to vote whose support is required for passage of a resolution.

Much of RELC’s infrastructure dates back decades and is in need of renewal. Our area has experienced growth in recent years which comes with a requirement to modernize and improve our distribution capacity. Additionally, capital spending is required to meet legislated requirements such as for the removal of transformers containing PCBs.

RELC has contractually committed to purchasing energy from the Ellershouse Windfarm but did not invest in the project.

Electricity purchased from the Ellershouse Wind Farm is priced lower than electricity from Nova Scotia Power – which it displaces – so RELC customers benefit from these savings (though not enough to offset economies of scale between RELC and Nova Scotia Power).

There is little information available to the current Commissioners, however we do not currently have particular cause for concern regarding fraud or embezzlement in prior years (despite the turnover of staff and Commissioners). The 2022-23 audit which as carried out by Belliveau Veinotte found no evidence of fraud. Belliveau Veinotte has also been contracted to conduct the 2024-25 audit which will be made publicly available on completion.

RELC Treasurer Merrill Zinck’s financial report to the June 24^th AGM noted higher than typical costs for the period including regulatory costs (which related to the General Rate Application process with the Utility & Review Board, a process which had not taken place for over 15 years) and management wages (which related to the full-time manager position, now discontinued in favour of lower cost services from Town of Mahone Bay), as well as the noted capital spending. The majority of the shortfall can be attributed to capital spending without financing in place.

The Commission engaged Belliveau Veinotte to complete the preparation of the 2022-23 audited financial statements; this was the first external audit carried out for RELC. The statements were presented to the Commission on October 30, 2024. Belliveau Veinotte has agreed to conduct the 2023-24 and 2024-25 audits with financial statements to be presented to an upcoming Commission meeting and subsequently reviewed at the AGM.

Answer coming shortly

No. While the Act requires a utility to maintain a fixed office location, RELC has contracted the Town of Mahone Bay to provide this fixed location – 493 Main Street Mahone Bay (the Town Hall) – for public access, mail delivery, etc.. RELC also still maintains and operates the yard on North Side Road.

In 2024 RELC was looking for the most cost-effective option to obtain qualified management and financial services for the utility. With preexisting partnerships with the Town of Mahone Bay Electrical Utility and AREA, it was logical for the Commission to reach out to these partners for provisions of management and financial services.  

RELC has traditionally billed monthly but can consider switching to bi-monthly billing. We are currently transitioning our billing platform with the intention to re-introduce a portal for customer payments and will be in a position to consider the billing cycle when this transition is complete. We would not however anticipate substantial savings in switching to bi-monthly billing, though it may be preferable to some customers.

Only on a preliminary basis but this analysis will certainly be undertaken and publicly reported presuming the membership sees fit to pass the resolution in this regard on the July 23rd 2025.

Certainly sale of excess renewables to Nova Scotia – should such an opportunity ever exist for RELC – is an option; as an independent utility RELC is well-positioned to partner with private renewable developers.

Electricity purchased from the Ellershouse Wind Farm is priced lower than electricity from Nova Scotia Power – which it displaces – so RELC customers benefit from these savings (though not enough to offset economies of scale between RELC and Nova Scotia Power). 

None of the current Commission members served at the time and we are not able to comment on the specific terms of the former manager’s departure.

The RELC Board of Commissioners is seeking approval to obtain $1,000,000 of long-term financing, approximately $600,000 of which is required immediately in relation to prior and current year capital spending.  This initial amount could be repayable over 10 years at an interest rate of 6%, which translates into yearly principal and interest payment of approximately $78,000. Given the Utilities current situation, sufficient cash is generated to cover general operating expenses, however there is little or no room to cover the repayment of long-term debt or future capital expenditures.  With no other changes, repayment of this long-term debt would require an increase in electricity rates of approximately 3.6%.  With regards to future capital purchases, it is anticipated that the Commission will be able to obtain external assistance to cover 50% of the expenditures.  The remaining $2,000,000 would need to be funded internally and RELC's legislative borrowing limit (of $1,000,000) would need to be increased to permit this. Based on the current situation further rate increases would be required to cover this amount, which could be paid back over as much as 30 years, depending on financing.  The magnitude of these rate increases is dependent on the terms of the financing that the Commission is able to obtain, which has yet to be determined, but could range between 8% to 12%.

The Commission has previously approached MODL, AREA and the Town of Mahone Bay concerning potential loans for capital purposes. As RELC currently owes AREA (for power purchased) and the Town of Mahone Bay (for shared wages and equipment costs), they have responded positively to the request to provide capital financing with the expectation that financing for prior year capital spending (which resulted in the cash shortfall and unpaid operating accounts) would facilitate repayment. While it is in the Town of Mahone Bay’s interest to assist RELC in securing capital financing – or to directly provide such – it is also in RELC’s interest to secure said financing.

The Commission does not currently have any capital debt but has incurred capital costs in recent years which have left us short of cash for operations. The Riverport Electric Light Act permits RELC to borrow from any private financial institution or other government (municipal, provincial or federal) for capital purposes. The Commission has previously approached MODL, AREA and the Town of Mahone Bay concerning potential loans.