Nova Scotia's largest environmental group opposes a deal to tie future power rates directly to fuel costs.

The Ecology Action Centre says instead of charging ratepayers more to cover the rising cost of fossil fuel, Nova Scotia Power should invest more in renewable energy.

"There's not much of an incentive for Nova Scotia Power to get off fossil fuels," said Brendan Haley, the group's energy co-ordinator.

Haley said the group is opposed to market pricing, which would keep power rates from going up another nine per cent this April, because consumers will pay too high a price in the future.

Nova Scotia Power has agreed to ask for less money from its customers, but the deal is conditional on introducing a fuel adjustment mechanism. As the price of oil or coal to produce electricity goes up, so will power rates.

"The only way to stop the cycle of madness is to use less fossil fuels in the first place," said Haley.

Nova Scotia Power is moving in that direction, said president and CEO Ralph Tedesco.

"Adding more renewable energy is an important part of our strategy to help stabilize fuel prices. It is the company's obligation with or without a fuel adjustment mechanism," he said.

As an example, Tedesco said, the utility is issuing tenders this month for more wind and solar energy suppliers. 

The Nova Scotia Utility and Review Board has set aside Wednesday evening for the public to question the new deal.