Legislation clears the way for overhaul of N.S. energy system

Nova Scotia Natural Resources Minister Tory Rushton flipped the switch Tuesday on the process to overhaul the province's electricity system.

Rushton tabled legislation on the opening day of the spring session at Province House that will create a regulatory board focused on energy and an independent system operator, removing the role from Nova Scotia Power. 

"This is a big step in changing how the system is regulated," Rushton told reporters during a briefing.

"We're making it more accountable and transparent to ratepayers. We're making it competitive and, for the first time, we're aligning that with our climate change goals."

The legislation will split the Utility and Review Board (UARB) into two new boards, one that focuses exclusively on energy, and the other focused on the remaining matters under the UARB mandate. Rushton said his government has confidence in the UARB, but he said its mandate "was extremely broad."

• Province plans to move forward on changes to electricity system

The new energy system operator will be an independent, non-profit, arm's-length entity with a CEO who reports to a board of directors. The government will appoint the first board, which is intended to consider the Tories' energy and climate change policy but is not compelled to act on government submissions.

Along with managing the system, the operator will also be responsible for procuring new energy sources and overseeing the connection of renewable energy projects. Rushton compared it to an air traffic controller that ensures the system is working in the best interest of customers.

If a transmission line to New Brunswick goes down, for example, it would be the operator that makes sure other electricity generation comes online to keep the system running.

Cost estimates for this transition won't be ready for a year or two, but Rushton said customers are already paying about $20 million a year for the system operator and it's expected any increases would be negligible. An official with Rushton's department estimated it would add "pennies" to a power bill.

Opposition concerned about cost, affordability

Liberal Leader Zach Churchill was not willing to take Rushton's assurances on costs at face value.

"This government has brought forward legislation previously where they told us it was going to reduce rates for Nova Scotians and it didn't," he told reporters.

"The legislation they have brought in to date has made the situation worse and now they're chasing their tail trying to fix it."

Churchill said the government needs to advance "a legitimate plan" that lowers rates and keeps them stable over time.

NDP energy critic Susan Leblanc said she was pleased to see the system operator will be made independent and a separate regulator focused on energy will be created, but she's concerned there are no measures in the bill that regulate affordability for people who struggle to pay their power bill.

"This is a perfect time, when we have this opened up and we have this opportunity to start from the ground up," she told reporters.

"That we're not looking at this, it's kind of shocking to me and very disappointing."

Opening the door to nuclear power

Rushton said officials in his department are examining models in other provinces, such as Ontario, that use an alternative power rate for low-income customers, but he said there are potential consequences of such moves.

He said his government has already made energy costs more affordable through the use of subsidies for heat pumps and "a huge array" of efficiency programs.

"That's a huge investment into our Nova Scotian residents."

The legislation was the key recommendation from the Clean Electricity Solutions Task Force, which delivered its report to Rushton last week.

To facilitate the new legislation, the government is also amending the Public Utilities Act.

Among other things, it will allow Nova Scotia Power to own a nuclear power plant.

Despite that change, Rushton said there are no plans at this time to lift the provincial ban on mining uranium.

Regions across Canada are looking at small modular nuclear reactors, said Rushton, and the government didn't want to hinder Nova Scotia Power or any other company considering them.

 "The small modular reactors, it's not two to five years down the road. These are many years down the road. So we want to make sure that as we plan for the future, that there are options on the table."

Rushton has said his department needs more time to assess the other 11 recommendations from the task force.