Key Dates

Nov 18 2010:
Term Sheet between Emera and Nalcor signed.
May 17 2012:
Maritime Link Act received Royal Assent in the NS Legislature.
July 31 2012:
Formal Commercial Agreements signed.

Formal agreements reached between Nalcor and Emera for the development and transmission of hydroelectric power from Muskrat Falls. The formal commercial agreements solidify each party’s intention to move forward according to the terms and conditions upon which they have agreed.

Inter-Provincial Agreement signed

The Inter-Provincial Agreement, signed by NS, NL, Emera and Nalcor, protects against either the NL or NS government taking action that could alter the terms of the deal. Nova Scotia would be subject to financial implications if the Province were to break the Agreement and impaired transmission access by Nalcor.

July 16 2012:
Maritime Link Cost Recovery Process Regulations released for public consultation.
Oct 2 2012:

Maritime Link Cost Recovery Process Regulations finalized.

Maritime Link Act proclaimed.

Nov 30, 2012:
Federal Loan Guarantee Terms and Conditions (FLG) signed.

The FLG outlines that it is essential that the Lower Churchill Projects have national and regional significance, economic and financial merit and significantly reduce green-house gas emissions.

The FLG will reduce the cost of borrowing for the project. These cost savings will be passed on to ratepayers in both NL and NS and for the Maritime Link (ML) alone could result in up to $250 million in value for Nova Scotia ratepayers over the life of the project ($100 million in present value terms).

There are certain key conditions that must be satisfied in NS prior to the FLG being issued.

  1. Formalization of a regulatory framework in legislation and/or regulations. This condition has been satisfied.
  2. Execution of an agreement between Canada and NS in which NS indemnifies Canada for any costs it may incur under the FLG as a result of a regulatory decision or regulatory change (including through legislation or policy) that prevents a borrower from recovering Project Costs and fully servicing Guaranteed Debt.
  3. The project proponent obtains all the necessary permits, approvals, land-use agreements and other authorizations required at Financial Close.
Dec 17, 2012:
Sanction Agreement signed

Emera and Nalcor sanction the Project, including the Maritime Link. (Nova Scotia is not party to this agreement).

Project Oversight Agreement signed.

This agreement, between NS, NL, Emera and Nalcor, establishes cooperation between the parties to reduce risk and ensure that the conditions of the FLG are met.

Stability Agreement signed

In this agreement NS seeks a stable regulatory environment for the ML Project until the UARB process is complete. NS agreed to indemnify Emera for costs it may incur directly or indirectly on the ML project as a result of a regulatory change. The Agreement took effect upon signature and expires (the liability to NS ends) at the Financial Close of the ML Project.

May 27, 2013:
UARB Hearing begins
July 22, 2013:
UARB Issues Maritime Link project decision

The ML Project is approved as lowest long-term cost alternative, conditional on NSPML obtaining the right to access Nalcor Market-priced Energy (consistent with the assumptions in the UARB Application).

Nov 29, 2013:

UARB Issues ML Supplemental decision

Subject to the representations and clarifications provided by NSPI and NSPML, all conditions in the Board's ML Decision dated July 22, 2013, are satisfied.

Dec 3, 2013:
Amendments to the Maritime Link Act introduced in the NS Legislature

Amendments to the ML Project are designed to:

  • Confirm the jurisdiction of the UARB to regulate ML Project.
  • Enable the Federal Loan Guarantee.
  • Provide NSPML similar authorities and immunities to those in place for NSPI required for the construction and operation of electrical utility projects.

NS signs Indemnity Agreement with Canada

The FLG requires the government of NS to indemnify or protect the federal government from financial risk as a result of actions of NS (such as changes in policy or regulation). NS would be required to indemnify this federal government if a NS action prevented the Borrower from recovering project costs and fully servicing the guaranteed debt. The indemnity agreement does not interfere with the UARB’s ability to protect the interest of ratepayers. This Agreement does not come into force and effect until financial close (the execution and delivery of all financing documents) for the ML Project. Financial Close for the ML must occur by 90 days after financial close for the Nalcor Projects.

NS signals intent to sign land use agreement for the subsea corridor in the Cabot Strait

Some of the ML project components will be located on Crown land (including submerged land) and NSPML must demonstrate to the federal government that it has the power to obtain the land rights for the subsea cable. The negotiations to complete a land-use agreement are in the final stages. Upon completion of the negotiations NS, NL and Canada will issue a single joint land-use agreement for the ML subsea land corridor in the Cabot Strait.