Regulator says N.S. Power cannot demand security from would-be competitor

Taryn Grant · CBC News

· Posted: Apr 09, 2025 5:15 PM EDT | Last Updated: 4 minutes ago

In a quality betwixt Nova Scotia Power and an emerging renewable vigor company, the provincial vigor regulator has sided with the small guy.

The Nova Scotia Energy Board says it volition not bid Renewall Energy to supply a missive of recognition — a papers from a fiscal instauration guaranteeing outgo — which Nova Scotia Power requested.

Renewall has a licence to merchantability upwind vigor straight to consumers utilizing Nova Scotia Power's grid, though it has not begun producing immoderate energy yet. It's portion of a programme acceptable up a decennary agone by the provincial authorities and meant to interruption up Nova Scotia Power's monopoly and summation renewable vigor use.

Renewall is truthful acold the lone subordinate successful the program, called Renewable to Retail.

Upfront costs estimated astatine $6.4M

Nova Scotia Power is expected to retrieve costs for tying caller vigor providers to the grid done tariffs, but past twelvemonth the inferior said the upfront costs were proving excessively much. It asked Renewall for a missive of recognition to guarantee it would beryllium capable to retrieve immoderate of the estimated $6.4 cardinal it anticipates spending.

Renewall refused, truthful the inferior took the contented to the regulator, which issued a determination connected the substance this week.

In a missive to Nova Scotia Power, the committee said requiring a missive of recognition could discourage information successful the program. It said it could unit tiny renewable vigor companies to enactment currency into fiscal institutions who supply letters of credit.

"That would necktie up superior and interaction a proponent's concern case," the committee said. 

"On the different hand, the implementation costs to date, though significant, bash not person the aforesaid interaction connected NS Power's fiscal situation."

Part of Nova Scotia Power's statement for the missive of recognition was that it was disquieted Renewable to Retail would ne'er travel to fruition, and it would ne'er get to retrieve the wealth it enactment in.

Renewall has doubly blown past deadlines to commencement making usage of its licence. The astir caller deadline was Dec. 31, 2024. The committee granted an hold to the licence to Dec. 31, 2026. It told Nova Scotia Power that it believes the institution "has a realistic prospect" of making bully connected its plans.

The institution did not instantly respond to CBC's petition for comment. Its website says it expects to commencement producing upwind vigor from its Mersey River task southbound of Milton, N.S., successful 2026.

Costs could autumn to ratepayers

However, should Renewall neglect to motorboat and nary different players participate the program, Nova Scotia Power could look to recoup costs different way.

The committee said the inferior "is not precluded" from recovering the wealth it puts into implementing Renewable to Retail from its ain ratepayers.

Should it travel to that, a mechanics would beryllium developed done the accustomed rate-setting process that happens earlier the board. The committee said betterment would beryllium contingent connected the costs being "prudently incurred."