HALIFAX -- Nova Scotia's consumer advocate says the province's energy regulator should reject a revised agreement to proceed with the proposed $1.5-billion Maritime Link project.
John Merrick told a public hearing today that the agreement between Emera (TSX:EMA) and Nalcor Energy, Newfoundland and Labrador's Crown-owned energy company, is not in the best interests of the province's ratepayers.
Merrick says the agreement does not allow for Nova Scotia's electric utility, Nova Scotia Power, to buy enough market-priced power from the Muskrat Falls hydroelectric project to ensure it is the cheapest option for a province trying to wean itself off coal-fired generating plants.
The Maritime Link would see the construction of a subsea cable that would link Nova Scotia with Newfoundland, allowing Nova Scotia Power to buy energy generated by Muskrat Falls, which is under construction in Labrador.
Nova Scotia's small business advocate, Nelson Blackburn, echoed Merrick's position, saying there won't be enough low-cost energy available and that the new agreement is further against the interests of ratepayers.
The Nova Scotia Utility and Review Board is holding a three-day public hearing in Halifax that began today to focus on whether Emera has secured a commercial guarantee from Nalcor for access to market-priced power.
In July, the board said Emera would have to ensure that Nova Scotians have access to the best price for surplus electricity from Muskrat Falls based on market conditions.
The regulator concluded that if that condition was met, the Maritime Link would represent the cheapest energy solution for Nova Scotia, but only by a narrow margin.
