MICHELLE ROBICHAUD: Nova Scotia's interference with regulator saps business confidence | SaltWire

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MICHELLE ROBICHAUD • Guest Opinion Michelle Robichaud is president, Atlantica Centre for Energy Atlantic Canada has an enormous task ahead to reduce ...

The stacks of the Tufts Cove generating plant operated by Nova Scotia Power reflected in the water of Halifax Harbour. "Beyond the clean electricity grid, massive investments are needed to transition to net zero by 2050," writes Michelle Robichaud. - Tim KrochakMichelle Robichaud is president, Atlantica Centre for Energy

To regulate the rates and services of electricity utilities, utility boards have been established by provincial governments. These utility boards operate independently from government with the mandate to balance ratepayers’ needs for fair rates with a utility’s opportunity to earn a fair return on their investment, especially where the utilities are private sector organizations as in Nova Scotia.

Here’s the problem: the government of Nova Scotia just changed these important rules. Near the end of the regulator’s process of evaluating evidence put forward by Nova Scotia Power and customer representatives, the government introduced Bill 212, which sets the amount of the rate increase and will further limit the utility’s ability to get a return on its investments.

After all, why would a utility invest multiple billions of dollars in Nova Scotia electricity infrastructure if it can’t hope to earn a reasonable return, let alone have confidence that the government will maintain its current rules? Beyond the clean electricity grid, though, massive investments are needed to transition to net zero by 2050. RBC recently issued a series of reports on climate change. The first report estimates the transition to net-zero emissions will cost Canada $2 trillion. Not all this investment will come from utilities; in fact, most of it will come from the private sector.

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MICHELLE ROBICHAUD: Nova Scotia's interference with regulator saps business confidence | SaltWireMICHELLE ROBICHAUD • Guest Opinion Michelle Robichaud is president, Atlantica Centre for Energy Atlantic Canada has an enormous task ahead to reduce ...
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