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ARTICLE · 24 SEPTEMBER 2012

Re-Thinking Atlantic Canada Power

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On September 6, 2012, the Nova Scotia Utility and Review Board (the "Board") denied Nova Scotia Power Inc.’s request for authorization to recover some or all of the embedded fixed or stranded costs should municipal electric utilities seek to become market participants and use the Nova Scotia Open Access Transmission Tariff (OATT).

CanadaEnergy and Natural Resources
Pierre Plante
Pierre Plante
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Open Access and Stranded Costs in Nova Scotia

On September 6, 2012, the Nova Scotia Utility and Review Board (the "Board") denied Nova Scotia Power Inc.'s request for authorization to recover some or all of the embedded fixed or stranded costs should municipal electric utilities seek to become market participants and use the Nova Scotia Open Access Transmission Tariff (OATT). Since the Board approved the OATT in 2005, the municipal electric utilities have had the right to opt out of purchasing electricity from Nova Scotia Power Inc. (NSPI) and instead take transmission service under the OATT.

In its decision, the Board found that the imposition of a substantive cost payment upon the municipalities would jeopardize their ability to pursue third party electricity supply. The Board's decision was based in part on the review of a 2005 Consensus Proposal filed with the Board prior to its approval of the OATT, in which NSPI accepted the risk that the municipalities might

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