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
Table of Contents
Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
Click here to go to the text of the regulations.
Citation
Definition
Designation as public utility
Requirement for Review Board approval
Application and review
Variance with respect to approved costs
Project report
Assessment and costing approval
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.
The following regulations are not
yet in force and are not included in the current consolidation: