New legislation has been introduced that is intended to modernize Nova Scotia’s electricity system and enhance public utility regulation in the energy sector, including creating an Independent Energy System Operator to take over certain functions from Nova Scotia Power.
“We want Nova Scotia ratepayers to have clean, reliable and affordable electricity. Bold changes are needed to our electricity system to do that,” said Tory Rushton, Minister of Natural Resources and Renewables. “With this legislation, we’re changing how the electricity system is structured and regulated. This will make it more accountable, transparent and competitive to make sure ratepayers get the lowest cost options and put the province in a better position as we move to clean energy.”
The Energy Reform (2024) Act creates two new acts and repeals the Utility and Review Board Act.
The new Energy and Regulatory Boards Act will split the Nova Scotia Utility and Review Board into two boards. It will create the Nova Scotia Energy Board with expertise in and a focus on regulating public utilities in the energy sector. The Energy Board will be required to consider the Environmental Goals and Climate Change Reduction Act in its decisions. The remaining responsibilities of the Utility and Review Board will stay with a restructured and renamed Regulatory and Appeals Board.
The new More Access to Energy Act will create an Independent Energy System Operator to manage the operations of the electricity system, making sure electricity is delivered where and when it is needed. It will also manage the connection of renewable energy projects to the grid. These will no longer be functions of Nova Scotia Power.
Nova Scotia Power is a wholly-owned subsidiary of Emera and provides 95% of the generation, transmission and distribution of electrical power to its residential, commercial and industrial customers across Nova Scotia. The company owns more than 2,400 MW of electric generating capacity, including 33 hydroelectric plants on 17 hydro river systems, totaling 400 MW of capacity.
The new independent, non-profit organization, managed by a CEO reporting to a board of directors, will also take on responsibilities for system planning and procuring new energy sources. This change will enhance transparency and accountability to Nova Scotians and the energy sector.
The Nova Scotia Energy Board is expected to be established this year, with the new Independent Energy System Operator fully operational by late 2025.
The bill also updates other legislation related to these acts, including the Electricity Act, Public Utilities Act and all legislation that refers to the Utility and Review Board.
Also under the Public Utilities Act, the bill makes amendments to:
- Remove a barrier to Nova Scotia Power owning a nuclear power generating station, allowing the utility to consider the use of small nuclear reactors in future
- Require all larger scale public utilities to conduct public procurements for increased transparency and accountability.
