BILL NO. 132
(as introduced)
1st Session, 65th General Assembly
Nova Scotia
4 Charles III, 2025
Private Member's Public Bill
Electric Utility Capital Accountability
and Transmission Competition Act
The Honourable Iain Rankin
Timberlea–Prospect
First Reading: September 23, 2025
Second Reading:
Third Reading:
An Act Respecting
Electric Utility Capital Accountability
and Transmission Competition
1 This Act may be cited as the Electric Utility Capital Accountability and Transmission Competition Act.
"Board" means the Nova Scotia Energy Board established under the Energy and Regulatory Boards Act;
"deemed equity ratio" means the capital structure approved by the Board for a utility in its most recent general rate application;
"Minister" means the Minister of Energy;
"utility" means an electric utility regulated under the Public Utilities Act.
3 (1) Where a utility applies to the Board for cost recovery from ratepayers for a capital project undertaken by the utility, the Board shall adjust the allowed return on equity to reflect the actual equity ratio used to finance the project.
(2) Where the equity ratio for a capital project exceeds the utility’s most recently approved deemed equity ratio, the allowed return on equity must be reduced proportionally to account for the reduced financial risk.
(3) The Board shall, though regulations or guidelines, establish an appropriate methodology for return on equity adjustments, after taking into account financial risk, capital markets and the utility cost of capital practices.
(4) The Board may make regulations for the purpose of subsection (3).
(5) The exercise by the Board of the authority contained in subsection (4) is a regulation within the meaning of the Regulations Act.
4 (1) All utilities shall disclose the financing structure of each of the utility’s capital projects in any rate application or capital plan submitted to the Board.
(2) The Board shall review the financing structure disclosed under subsection (1) and determine the risk-adjusted return on equity before approving any cost recovery from ratepayers.
5 (1) Any new or upgraded transmission project exceeding a capital cost threshold of $50,000,000 must be subject to a competitive procurement process, unless exempted under Section 6.
(2) The Minister may establish a transmission procurement authority to administer the transmission procurement process.
(3) Where the Minister does not establish a transmission procurement authority under subsection (2), the Minister shall direct the Board to administer the transmission procurement process.
(4) A utility may submit bids in the transmission procurement process, but it shall not be granted exclusive development rights unless granted through the competitive process or exempted under Section 6.
6 (1) The transmission procurement authority or the Board, as the case may be, may exempt a transmission project from a competitive procurement process if
(a) the project is required on an emergency basis to maintain grid reliability;
(b) the project must be undertaken by the incumbent utility due to technical integration or interconnection requirements; or
(c) a competitive procurement process is deemed impractical or contrary to the public interest.
(2) An exemption granted under this Section must be set out in a written decision, which must include the reasons for the exemption.
7 All transmission procurement decisions, including the result of the bidding process and the reasons for the transmission project being undertaken, must be made publicly available within 60 days of the decision being made.
8 The transmission procurement authority or the Board, as the case may be, shall submit an annual report to the Minister summarizing any procurement decisions made under the transmission procurement process in the previous year and the costs associated with building the transmission projects.
9 (1) The Governor in Council may make regulations
(a) respecting a transmission procurement authority;
(b) respecting dispute resolution procedures relating to the procurement process for transmission projects;
(c) defining any word or expression used but not defined in this Act;
(d) respecting any matter necessary or advisable to carry out effectively the intent and purpose of this Act.
(2) The exercise by the Governor in Council of the authority contained in subsection (1) is a regulation within the meaning of the Regulations Act.
10 The money required for the purpose of this Act must be paid out of money appropriated for that purpose by the Legislature.