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Maritime Link Cost Recovery Process Regulations
made under Section 6 of the
Maritime Link Act
S.N.S. 2012, c. 9
O.I.C. 2012-326 (October 2, 2012), N.S. Reg. 189/2012
Citation
1 These regulations may be cited as the Maritime Link Cost Recovery Process Regulations.
Definition
2 In these regulations,
“Act” means the Maritime Link Act;
“greenhouse gas” means a greenhouse gas as defined in the Greenhouse Gas Emissions Regulations made under the Environment Act;
“Emera” means Emera Incorporated, a body corporate incorporated under the laws of the Province, and includes any of its affiliates;
“Nalcor Energy” means Nalcor Energy, a body corporate incorporated under the laws of the Province of Newfoundland and Labrador, and includes any of its affiliates;
“Nalcor Transactions” means the transactions with respect to the Maritime Link Project as set out in the Agreement dated July 31, 2012, between Emera, Nalcor Energy, the Government of Nova Scotia and the Government of Newfoundland and Labrador, and for greater certainty includes all of the following transactions as set out in agreements between Emera and Nalcor Energy:
(i) the development of the Maritime Link by Emera,
(ii) the provision to Emera of energy equivalent to 20% of the estimated capacity of the Muskrat Falls Generating Station,
(iii) the provision to Nalcor Energy of certain transmission rights through the Province,
(iv) the granting of transmission rights over the Maritime Link,
(v) the responsibility for operating and maintaining the Maritime Link,
(vi) the transfer of the Maritime Link to Nalcor Energy following a period of 35 years after energy is first delivered to Emera;
“Project costs” means all costs incurred by an applicant in connection with the Maritime Link Project.
Designation as public utility
3 An applicant is deemed to be a public utility within the meaning of the Public Utilities Act and the Public Utilities Act applies to an applicant.
Requirement for Review Board approval
4 (1) To obtain a rate, toll, charge or other compensation for services as defined under the Public Utilities Act, an applicant must first obtain an approval of the Maritime Link Project under Section 5.
(2) Once approved under Section 5, an applicant is entitled to recover Project costs through a rate, toll, charge or other compensation from Nova Scotia Power Incorporated in accordance with Section 8.
(3) An applicant who makes an application under this Section is not required to make a separate application under Section 35 or 35A of the Public Utilities Act, but once the Review Board has approved an assessment under Section 8, the applicant is subject to Sections 35 and 35A of the Public Utilities Act with respect to any new expenditures.
Application and review
5 (1) The Review Board must approve the Maritime Link Project if, on the evidence and submissions provided, the Review Board is satisfied that the project meets all of the following criteria:
(a) the project represents the lowest long-term cost alternative for electricity for ratepayers in the Province;
(b) the project is consistent with obligations under the Electricity Act, and any obligations governing the release of greenhouse gases and air pollutants under the Environment Act, the Canadian Environmental Protection Act (Canada) and any associated agreements.
(2) An applicant must provide the Review Board with the best information and evidence available at the time to apply the criteria in subsection (1).
(3) In its approval, the Review Board may order any terms and conditions it considers necessary.
(4) The Review Board must make a decision under Section 5 no later than 180 days after the date the applicant submits an application.
(5) An application must include all of the following:
(a) a statement of the purpose of the Maritime Link Project, including the reasons for the project and the specific relief being requested of the Review Board;
(b) a summary of the commercial transactions with Nalcor Energy together with copies of all relevant agreements;
(c) engineering and design details sufficient to enable the Review Board to approve the Maritime Link Project in accordance with subsection (1);
(d) capital and operating cost estimates for the Maritime Link Project, including proposed capital structure and return-on-investment;
(e) capital and operating cost estimates for Muskrat Falls, Labrador transmission assets and the Labrador Island link, together with supporting engineering and design evidence;
(f) an analysis of lowest long-term cost alternatives to the Maritime Link Project;
(g) anticipated schedule of construction and in-service schedule for the Maritime Link, as contemplated under the Nalcor Transactions.
Variance with respect to approved costs
6 (1) If requested by an applicant, the Review Board must establish a variance with respect to the approved cost of the Maritime Link Project.
(2) The size of the variance must be set by the Review Board.
(3) If at any time there are Project costs that exceed the variance established under this Section, an applicant must apply to have the excess costs approved by the Review Board in accordance with Section 8.
Project report
7 (1) An applicant must file a project report on the Maritime Link Project containing the details required by subsection (2) with the Review Board:
(a) on or before December 31, 2013; or
(b) on or before another date the Review Board orders, as it considers necessary as a result of the progress of the Maritime Link Project.
(2) A project report must set out all the following for the Maritime Link Project:
(a) detailed engineering and design information;
(b) updated and current cost estimates and actuals;
(c) any material changes to any of the information submitted to the Review Board under Section 5.
Assessment and costing approval
8 (1) Before receiving energy under the Nalcor Transactions, an applicant must set an assessment against Nova Scotia Power Incorporated for the recovery of the all approved Project costs, and must apply to the Review Board for an approval of the assessment under Section 64 of the Public Utilities Act.
(2) Nova Scotia Power Incorporated is entitled to recover through its rates any assessment approved by the Review Board in respect of the Maritime Link Project.