There may be a possible settlement agreement in the works even as Nova Scotia Power goes before the provincial regulator to request its latest rate increase.

The power corporation is requesting a three per cent increase in both 2013 and 2014. The Utility and Review Board Hearing was set for 9 a.m. Thursday.

“It’s not reasonable,” Jamie Baillie told the Rick Howe Show on Wednesday.

The Progressive Conservative leader has intervenor status and said he will be lobbying to deny NSP the increase.

“There’s no relation to the ability of the people of Nova Scotia to pay,” said Baillie. “We have this frustrating situation in Nova Scotia where our wages are not going up, our pensions are not going up, many people have lost their jobs, but our power bills keep going up and up. It’s a squeeze that’s not fair.”

NSP has raised its rates seven times in the last 11 years, and it’s not expected to be the last.

President and CEO Rob Bennett told the Truro and District Chamber of Commerce last week that the increases will continue until at least 2020.

The latest rate application hearing may be truncated by a settlement agreement.

The Avon Group, which includes some of NSP’s larger industrial customers, asked the UARB late Wednesday afternoon to delay the hearing.

In a letter to the board, it said NSPI, the consumer advocate, small business advocate and the Avon Group have been engaged in settlement negotiations and Thursday would be better spent continuing talks.

The UARB responded saying it’s too late to delay the hearing, therefore it will commence as scheduled. However, it will deal with a possible adjournment.