Most residential customers will pay an extra $1 a month if Nova Scotia Power's proposed conservation programs and surcharge are approved.

The corporation appeared before the Nova Scotia Utility and Review Board on Wednesday.

Nova Scotia Power Inc. wants to convince customers to use less electricity so it doesn't have to build another generating plant, which could cost more than $1 billion.

As such, the corporation is asking the utility and review board to approve $23 million worth of energy conservation programs. It also wants a surcharge to offset the money it would have spent on infrastructure and equipment.

Alan Richardson, a vice-president with NSPI, said the programs may cost money now, but they would generate bigger savings in the future.

He compares it to a shopper choosing a compact fluorescent light bulb.

"They can buy the cheaper, incandescent bulb and pay less up front or they can pay a little bit more for the compact fluorescent lamp, which is more energy efficient. They might pay a couple of dollars more, but over the life of the bulb they save $50," Richardson said.

"If you imagine that on a broader scale, that's the kind of effect that this is having."

Richardson said it would mean an additional cost of $1 a month for most residential customers.

The Halifax Regional Municipality and the large pulp mills support energy conservation programs, their lawyers said, but they're fighting the surcharge.

Consumer advocate John Merrick said NSPI should be forced to prove its case at a rate hearing.

"We also want to ensure that our power company is not able to impose rate increases on us that are not justified," he said. "You've got to look at all the factors that show us whether or not they really are losing X dollars on the recovery of fixed costs."

NSPI has spent about $8 million over the last two years to roll out an ad campaign on energy efficiency. It expects to spend $40 million on conservation programs in 2010, nearly double the $23-million cost for this year.

NSPI produces, transmits and distributes 97 per cent of the power in the province. The corporation has 460,000 customers, residential and commercial.