Nova Scotia Power fined $10M for missing renewable-electricity targets

Company disagrees with the penalty and will appeal the fine, spokesperson says

Michael Gorman · CBC News

The provincial government has fined Nova Scotia Power $10 million for missing renewable-electricity targets, a decision the company says it intends to appeal.

Natural Resources and Renewables Minister Tory Rushton confirmed the fine during an interview on Thursday, saying he did not think the company had done enough to try to mitigate the shortfall in renewable energy.

“We need to play serious here,” said Rushton.

“This is not something that I took lightly. It’s not a proud moment anytime that somebody has to impose a fine on anything. But I also need Nova Scotia Power to understand we’re standing up for the ratepayers of Nova Scotia and this is us being very serious about this process.”

Natural Resources and Renewables Minister Tory Rushton says the fine is intended to show the government’s seriousness about reaching renewable-energy targets. (CBC)

The company was supposed to be generating 40 per cent of its electricity from renewable sources by 2020. Because of delays getting the full block of power from the Muskrat Falls hydroelectric dam in Labrador, that deadline was pushed back and rules were changed to allow the company to deliver a three-year average of 40 per cent renewables by the end of 2022.

Company officials indicated in September that they would miss the target.

A spokesperson for Nova Scotia Power said on Thursday that they know it’s important to green the electricity grid and produce cleaner energy, but the company will fight the fine.

“We respectfully disagree with the penalty and intend to appeal the decision of the provincial government with the [Nova Scotia] Utility and Review Board,” Jacqueline Foster said in an email.

The legislation Rushton is using to issue the fine prevents Nova Scotia Power from passing the cost on to its customers.

“This comes from Nova Scotia Power shareholders,” he said.

Nova Scotia Power officials have said delays in getting full and consistent power from the Muskrat Falls hydroelectric dam in Labrador has hindered their ability to reach renewable-energy targets. (Danny Arsenault/CBC)

The situation sets up another potential showdown between NSP and Premier Tim Houston’s government.

The UARB approved an electricity rate hike in February despite calls from Houston to deny it. The Tories passed legislation last fall aimed at limiting rate increases, which led to credit downgrades for the company.

Despite the fine and the renewable energy shortfall, Rushton said he remains confident the province and Nova Scotia Power will be able to reach 2030 targets that call for 80 per cent of electricity to come from renewables and coal-fired power plants to be closed.

With five major wind projects at various stages of development, expansion of the solar industry and the pursuit of offshore wind projects, Rushton said there is a path to reaching the 2030 targets.

The potential of the Atlantic Loop, a project that would bring hydro power from Quebec and Labrador to the Maritimes, also remains a possibility although Houston signaled last week that he is not optimistic about that unless the federal government is willing to commit a “meaningful” investment toward the multibillion-dollar cost.