Frequently Asked Questions

  1. Has the Government considered burning additional coal to meet the province’s energy needs instead of seeking electricity from the Maritime Link?

    Burning more coal is not a solution. In fact we are required by federal law to start burning a lot less coal by the end of the decade with further reductions over the next ten years. The price of coal increased significantly over the past decade and its price volatility is a major reason for the current electricity prices in Nova Scotia. Coal is also considered a dirty source of energy, causing pollutants to be released into our environment. Nova Scotia has very strict greenhouse gas emission laws and goals it must obey, making the need for increased clean, renewable energy a priority for the Provincial Government. 

  2. Why didn’t we go with the lowest cost today and build a new clean fuel natural gas plant?

    True, natural gas is cleaner than the coal we are cutting back on, but it still produces greenhouse gas (GHG) emissions. Under the terms of the Province’s agreement with Ottawa, those emissions that contribute to climate change must be reduced significantly between 2020 and 2030. So to invest in a new generation plant that becomes at least partially obsolete within a few years doesn’t make sense.

  3. Has the Provincial Government considered imported energy or local power producers as alternatives to the Maritime Link?

    Yes. The new deal associated with the Maritime Link will allow greater competition and opportunities for imported power and local producers.

  4. Will we have to pay for premium green energy when we access market electricity?

    No. The UARB determined that the market price will be one which does not have a green premium. Under Board accepted forecasts, Nova Scotia Power does not need additional electricity from non-GHG emitting sources Current supplies and the new base block are expected to be sufficient.

  5. Would it be better for Nova Scotia to let Emera built the Maritime Link by itself?

    Testimony at the UARB made it clear that the Maritime Link could not be financed without firm long-term contracts. So whether we pay for the electricity by paying for a share of the project or pay under a long-term contract, the price is much the same. We need to make a commitment for some of the electricity in order to get the advantage of lower market prices that come from competition. Without a firm commitment, Nova Scotia ratepayers would have to source or build other generation at a higher cost.

  6. Will Emera benefit financially from the Maritime Link?

    As a private company, Emera invests its own capital and borrows from others to build projects. Shareholders earn profits on the capital they invest. However, the Nova Scotia Government has taken steps to ensure that these profits do not come at the expense of ratepayers. Nova Scotia is moving to ensure the Board’s decisions on the Maritime Link are fully supported in legislation and ensure ratepayers benefit from the Federal Loan Guarantee on the project. We hold Emera and Nova Scotia Power to high service standards and recently introduced legislation that will create a competitive energy market in the province. The steps the government has taken will also result in $250 million in savings to ratepayers and will allow the government to move forward with savings from other imports and regional cooperation.

  7. Was there a time when the current Provincial Government did not support the Maritime Link project?

    We have always supported the Maritime Link as a project and the benefits it represents to the province, however we felt that if the project was to go ahead, it must do so for the benefit of Nova Scotians. We did not support the initial deal for the project presented to the UARB by Emera and Nalcor in the spring of 2013. That filing did not do enough to protect ratepayers from risk. The Board ruled that the deal presented at that time did not meet the protection needs of ratepayers. We requested eight conditions be included in the final deal during the Maritime Link compliance hearing in November and we were pleased to see the Board agreed with us.

  8. How does the compliance filing agreement differ from the one the UARB first reviewed in the spring?

    The agreement approved on Nov. 29 is vastly improved from the one originally presented six months ago. There are a number of advancements, including guaranteed access to market-priced energy and the fact this project will help create a competitive energy market in Nova Scotia. The biggest improvement is that the financial risks of the project have been moved from ratepayers to the project’s proponents, Emera and Nalcor.

  9. Does the approved compliance hearing deal meet all eight of the conditions requested by Government?

    We are confident that our recommendations to the Board are included in the approved deal. The exact wording of our conditions was not required; it was the effect of the conditions that was essential. If each of the eight conditions had not been met, we would not have supported the deal going forward. The Province’s legal advice is that the conditions we requested have been met in full.

  10. In what way does the UARB decision go beyond the eight conditions recommended by the Province?

    In its final decision, the Board stated it will hold Emera responsible for what the company said during testimony at the compliance filing hearing. This makes Emera responsible for even more than is written in the document, going above and beyond the stringent conditions we recommended during the hearing. The testimony which now forms part of the Board’s enforceable decision outlines in specifics how the purchase and sale of surplus energy will be handled. Furthermore, amendments introduced to the Maritime Link Act on Dec. 3 ensure that the UARB has full authority over the Project and is able to guarantee compliance by Emera on the full Board decisions, including those already made.