Nova Scotia Approves Regulations Allowing Utility Asset Securitization
The Province of Nova Scotia has approved regulations enabling Nova Scotia Power Inc. to apply to the Nova Scotia Energy Board for authority to securitize utility assets, a financing mechanism intended to lower customer costs and shield residents from sudden rate increases.
The Province of Nova Scotia has approved new regulations that enable Nova Scotia Power Inc. to apply to the Nova Scotia Energy Board for authority to securitize utility assets.
Securitization is a financing mechanism that allows for the recovery of approved costs at a lower interest rate and over a longer time period. According to the provincial government, this approach is designed to lower costs for customers. The regulations form part of a broader plan to help shield Nova Scotians from sudden and significant rate increases.
Officials stated that every aspect of an application submitted to the energy board will be scrutinized to ensure the approach is in the best interests of Nova Scotians.
The approval follows a series of energy-related actions taken by the province over the past five years. During that period, the government created the Independent Energy System Operator, advanced its clean power plan, restructured the Nova Scotia Energy Board, and introduced legislation to review performance-based regulation.