Nova Scotia Power parent company halts work on Atlantic Loop

There's a power struggle underway between the government of Nova Scotia and Emera Inc., the parent company of Nova Scotia Power.

Emera President and CEO Scott Balfour says its team will cease work immediately on the Atlantic Loop and other similar capital projects.

This comes as a direct response to legislation tabled by the Tim Houston government this week, which capped the energy company's ability to increase rate hikes beyond 1.8 per cent over the next two years.

Balfour said the Atlantic Loop energy project is critical to the transitioning of Nova Scotia off coal-fired energy production, but not feasible under the current conditions set by the government’s new regulations.

"We’ve had to push pause on that," said Balfour. "We’re in an environment now, where we're not sure how it's going to be paid for."

The multibillion dollar Atlantic Loop energy project would connect all four Atlantic provinces to hydroelectric energy produced by Quebec and Labrador.

The project is viewed as a critical piece to help Nova Scotia meet its future greenhouse gas emission targets and close the remaining four coal power plants by 2030.

Still, Houston won't close the door on the Atlantic Loop, but says he’s focussing on other ways to reach carbon emission targets.

"That’s why we’ve been focusing on solar, wind, and legislation to make hydrogen happen," said Houston. "But we’re going to move forward to meet our targets and we’ll do what is best for Nova Scotians."

Houston has said that the government’s focus is to make energy more affordable for ratepayers and improving the energy grid's reliability.

Meantime, opposition parties warn that if the province fails to transition from coal and gas-supplied electricity, rates will inevitably rise.

"If we don’t have that renewable energy source (Atlantic Loop) our rates are going to go up," said Zach Churchill, Liberal leader. "That’s a frightening thing for a lot of people, considering they’re already faced with major inflationary and cost of living pressures right now."

"If not the Atlantic loop then what’s plan B?" said NDP leader Claudia Chender. She adds her party hasn’t heard an alternative.

"We have been saying for quite some time that our power needs to be affordable, it needs to be reliable and it needs to be green," said Chender. "That’s something that’s not coming out of the premier's mouth and it’s very important."

Houston says there's been a lot of uncertainty around the Atlantic Loop and he has big questions for the Federal government and its commitment to helping Atlantic Canada transition to greener energy sources.

"Let’s be clear the loop would make it easier and we would welcome a loop that is funded by the federal government to their appropriate share," said Houston.

Nova Scotia Power has an application before the provinces Utility and Review Board and was asking for a general rate increase of nearly 14 per cent over the next two years.

Nova Scotia Power will only be allowed to raise the general rate by 1.8 per cent per year for the next two years. However, with rising fuel costs it’s likely the review board would greenlight a hefty fuel charge that would increase the energy bills for ratepayers.

A decision from the UARB is expected in December.