Province plans to move forward on changes to electricity system

The Nova Scotia government is planning to move ahead with key changes being proposed for the province's electricity system.

They include the creation of a new independent energy system operator that would take some functions away from Nova Scotia Power.

Also, a standalone energy regulator would take electricity regulation out of the hands of the Nova Scotia Utility and Review Board.

The recommendations are included in a report from the Clean Electricity Solutions Task Force that the province formed last April.

The task force handed in its report on Jan. 31. It proposes 12 recommendations the authors say will deal with electricity regulation, infrastructure, reliability and affordability.

"It will enable the province to move with confidence to its climate change goals," said Alison Scott, a former energy regulator, who is the chair.

Nova Scotia has made a commitment to eliminate coal-fired electricity by 2030, on its way to being net-zero by 2050.

A significant step toward creating more competition in the sector is in the report's recommendation to move to a not-for-profit system operator.

The report suggests taking control over who has access to the grid away from Nova Scotia Power.

"It puts an end to any perceived conflict of interest or bias between the system operator and Nova Scotia Power," said John MacIsaac, a former utility executive, who is a task force member.

New regulator separate from UARB

MacIsaac said the move, which proposes assigning access to the electrical grid to a new operator, should enable growth of renewables in a fair environment.

In another key step, the task force is recommending a new standalone energy regulator — the Nova Scotia Energy Board.

It would be separate from the province's Utility and Review Board, which would be renamed the Nova Scotia Regulatory and Appeals board.

Scott said the UARB operates well but its mandate is too broad. Other provinces like New Brunswick have their own form of an energy regulator.

Nova Scotia Power not objecting to changes

A new system operator and regulator are part of the report's first recommendation for an Energy Modernization Act.

Minister for Natural Resources and Renewables Tory Rushton has already confirmed the province will move ahead with the act in the upcoming session of the legislature.

"That was the primary recommendation from the task force and we started to move on that initially," Rushton said. " We'll be looking at the other recommendations and manoeuvering those in time to come as well."

Premier Tim Houston has been highly critical of both Nova Scotia Power and the Utility and Review Board.

Nova Scotia Power worked with the task force through its process. It said it's reviewing the report but already described the key recommendations as "positive next steps."

"Having a dedicated energy regulator will be important to advance critical projects and customer solutions to meet the changing needs of Nova Scotians during the transition," NSP President and CEO Peter Gregg said in a statement.

The Nova Scotia Utility and Review Board said it would not be responding to the report's recommendations.

In a news release Rushton said there would not be job losses as changes move forward. He said he expects the transition to take one or two years.