IERN International Energy Regulation Network

The sector is fully privatised.

Nova Scotia generally is an net exporter to New Brunswick and New England. However in 2004, Nova Scotia was a net purchaser of electricity from New Brunswick.

The first generating company is fully-integrated Nova Scotia Power Inc. (NSPI), an investor owned utility and the principal subsidiary of a holding company, N.S. Power Holdings Incorporated, which is now known as Emera Incorporate, the second player of the market. NSPI is the successor to the Nova Scotia Power Corporation ("NSPC"), a crown corporation owned by the Province of Nova Scotia that has been privatised by the 1992.

NSPI owns and operates approx. 97% of generation.

Nova Scotia has a mix of generation, with a total capacity of 2 321 MW (of which 332 MW is dual-fuelled oil/natural gas) as of December 2003. Almost half the total capacity and 70% of generation are accounted for by coal fired units.

The electricity market is vertically integrated.

The sector is partially privatised.

The main transmission grid is owned and operated by NSPI under RTPA (approx. 99% of transmission).

NSPI owns and operates approx. the 95% of distribution system in the province. The remaining distribution is owned and operated by six municipal utilities, the province’s wholesale customers.

NSUARB approves NSPI open access transmission tariffs and distribution rates on a cost-of-services basis.

NSPI is the dominant electricity supplier in the province serving approximately 450,000 customers, including six municipal electric distribution utilities.

NSUARB approves NSPI end-users tariffs and extra large industrial interruptible rate.

The sector is fully privatised.

One of the main natural gas deposit remaining to be developed in North America is encompassed in the Sable Offshore Energy (SOE) Project that now represents the center of natural gas production on the Atlantic coast. The SOE project, led by ExxonMobil and Shell Canada, began production in 1999 and encompasses numerous offshore fields , with the Alma and South Venture fields the latest brought on-line. SOE Project is currently averaging just over 400 MMcf/d.

The associated pipeline project is the Maritimes and Northeast Pipeline Project (M&NP) 75% owned by Duke Energy,12.5% by Exxon Mobil Corporation and 12.5% by Emera Inc.

Approx- the 80% of Nova Scotia production is exported to US.

19 Companies are involved in Nova Scotia’s offshore and offshore exploration activities.

There is potential for one or more LNG facilities in the province.

The sector is fully privatised.

3 pipeline companies: El Paso Canada Pipeline (ECP), Maritimes and Northeast Pipeline (M&NP), TransCanada Pipelines (TP).

Transmission charges and tariffs are approved by the UARB.

The UARB approved a distribution franchisee for Heritage Gas (majority-owned by SaskEnergy Inc.) to provide potential customers in Halifax, Hants, Cumberland, Pictou and Colchester countries with natural gas.

In 2004 a distribution franchisee has been granted to Strait Area Gas to deliver natural gas to the towns of Mulgrave and Port Hawkesbury.

The sector is fully privatised.

Heritage Gas Limited provides electricity to full regulated consumers in Halifax, Hants, Cumberland, Pictou and Colchester.

End-user prices are regulated by UARB, that approves Heritage Gas Limites rate changes.

• Offshore and on-shore natural gas project under development (i.e. the SOEP project located approximately 225 km off the east coast of Nova Scotia; EnCana Corporation’s (EnCana) Deep Panuke project, located approximately 175 km southeast of Goldboro on the Scotian Shelf). Estimated reserves for Deep Panuke are approximately one Tcf with estimates of undiscovered resources for the Baccaro Reef play ranging from three to nine Tcf.)
• Several energy production project under development (Sable Offshore Energy Project (SOEP) production is averaging around 445 Mmcf/d production)
• 2 LNG terminals proposal. One facility is proposed for Bear Head, Richmond County by Bear Head LNG Corporation an affiliate of Anadarko Canada Corporation. The other facility is proposed for Goldboro, Guysborough Country, by Keltic Petrochemicals Inc.
• ECP is proposing to lay an under water pipeline connecting Nova Scotia directly with New York. Project go-ahead is subject to securing a source of natural gas and obtaining regulatory approval
• Opportunities for electricity trade with the U.S. are expected to improve in the next few years.
• Nova Scotia’s planned renewable portfolio standards specify that five percent of its energy requirement be met with new renewable generation by 2010
• In addition to renewable power, it appears that cogeneration could be an attractive long-term generation option.
• Because of its predominantly coal-fired generation, Nova Scotia is taking major steps to address emissions issues
• Introduction of a limited wholesale energy market has been planned
• A possible setting up of a cross-border ISO within Canada is under discussion. The New Brunswick System Operator might evolve into a regional ISO that would include New Brunswick, Nova Scotia, Prince Edward Island and northern Maine.