Maritime Link Project Overview

Amendments to the Maritime Link Act

• Strengthen Nova Scotia Utility and Review Board oversight of Maritime Link by:
  • Confirming the jurisdiction of the UARB to regulate Maritime Link Project
• Ensure compliance by Emera on all UARB decisions including those already in place by:
  • Ensuring the UARB decisions are fully supported in legislation with the result that risk is moved from ratepayer to Emera and Nalcor
• Provide NS with guaranteed access to market priced energy
• Provide Nova Scotia Power Maritime Link Inc. (NSPML) similar authorities and immunities to those in place for Nova Scotia Power (NSP) for the construction and operation of electrical utility projects
• Give NSPML the authority to acquire the lands, rights-of-way and protections needed to meet the terms and conditions of the federal loan guarantee (FLG) (These conditions are also needed in order to finance the project from private lenders and investors.)

More specifically, the amendments are designed to:

• Treat NSPML’s assessed property the same as Nova Scotia Power for the purposes of grants in lieu of taxes
• Provide exemption from the Building Code Act and municipal planning requirements in recognition of public interest in electricity and specialized safety capabilities of a utility
• Limit liability of NSPML to NSPI customers in case of a failure to deliver electricity in the same manner as NSPI.
• Provide expropriation powers and authority to the applicant under certain circumstances
• Additional confirmation of the jurisdiction of the UARB to review the Maritime Link Project and embed the decision
• Allow NSPI the right to pass on to ratepayers a rate or levy charged through the Maritime Link review process, as approved by the UARB
• Exempt NSPML from needing to have UARB for approval for financing plans. (Emera is already heavily scrutinized by securities regulators).

Federal Loan Guarantee

• The federal government agreed to provide the Federal Loan Guarantee (FLG) based on three criteria: the project has national and regional significance, economic and financial merit and significantly reduces greenhouse gas emissions.
• Securing the FLG to finance the Maritime Link project will save Nova Scotia ratepayers around $250 million dollars over the life of the project.
• A number of requirements must be finalized to meet the terms of the Federal Loan Guarantee, including:
  • Indemnity Agreement: The Indemnity Agreement had to be signed before federal support was made available. As a condition of the Federal Loan Guarantee, the government of Nova Scotia agrees it won’t do anything to increase risks for the federal government under its loan guarantee.
  • This agreement is a reasonable commercial term for this kind of financial arrangement. The agreement doesn’t interfere with the UARB’s ability to protect the interests of ratepayers.
  • Agreement on subsea cable corridor property conveyance (lease/license/easement): Some of the project components will be located on Crown land (including submerged land) and NSPML must finalize all necessary permits, approvals and user agreements.
  • NSPML must have the proper authorization to use Crown lands to build the subsea cable.
  • The negotiations to complete a land-use agreement are in the final stages. Upon completion of the negotiations Nova Scotia, Newfoundland and Labrador and Canada will issue a single joint land-use agreement for the Maritime Link subsea land corridor in the Cabot Strait.
  • Regulatory Framework: The regulatory framework for the ML Project (Maritime Link Act and regulations) is in place and this satisfies the FLG requirement.
  • The province must amend the Maritime Link Act to give the project proponent, Nova Scotia Power Maritime Link Inc. (NSPML), the legal authorities and powers necessary to build, operate and maintain the Maritime Link.

COMPLETE – UPON APPROVAL IN THE LEGISLATURE