Nova Scotia's Utility and Review Board has ruled that Nova Scotia Power must spend $102 million over three years to fund energy conservation programs but the utility says it's not likely to cause a rate increase.

The decision, released this morning, will see EfficiencyOne, the non-profit agency that provides programs, receive $33.2 million in 2016, $34 million in 2017 and $34.9 million in 2018.

What remains to be seen is how the ruling will affect Nova Scotia Power customers. The utility has argued that any costs over $22 million per year will result in rate hikes for its customers.

Nova Scotia Power spokesperson David Rodenhiser said Wednesday the decision puts them in the range.

"It takes that number down to around the range we were talking about in our application so for the next year, a $1.7 million difference on its own should not trigger a rate increase," he said.

But in its decision the UARB found, with EfficiencyOne's $8.4 million surplus and $1 million in amortization, the actual revenue shortfall for NSP in 2016 would only be about $2 million.

"Given a total NSPI revenue requirement of $1.3 billion, the board does not believe a revenue shortfall of approximately $2 million will drive a rate increase as it believes NSPI should be able to find offsetting savings to achieve that," the regulator said.

"If that were not possible, and the $2 million difference would cause a rate increase, the board would hear evidence with respect to deferral. In the circumstances, therefore, the board believes the program is affordable."

EfficiencyOne had requested funding of $113.5 over three years — about $38 million a year.

The board has reduced spending on energy conservation programs by 10 per cent from what EfficiencyOne requested after striking a deal with the consumer advocates and the Ecology Action Center and Affordable Energy Coalition.

'History of underspending'

​﻿NSP did not support that agreement.

In its written decision, the UARB said in choosing to reduce spending by 10 per cent, it "considered the history of underspending on DSM programming, the history of overachieving savings and demand targets, and as an inducement to bring greater rigor to the calculation of incentives."

The board considers that the target energy and demand savings included in the EfficiencyOne plan can be achieved within the approved spending; however, if the agency feels that revisions are necessary, they can be requested later from the board.

The regulator also directed EfficiencyOne to come up with a "more rigorous program of determining incentives" that must be filed with the board by March 31, 2016.

To avoid a lengthy series of hearings and filings for the next funding period, following 2018, the board also directed NSP and EfficiencyOne to submit standardized applications that include: