Dec 18 2012
Emera Inc. is pleased to announce sanction of the Maritime Link, an energy transmission project that will link the provinces of Newfoundland and Labrador and Nova Scotia for the very first time. When completed, The Maritime Link will supply affordable, reliable and renewable energy to Nova Scotians.
The Sanction Agreement entered into today will enable Emera and Nalcor to move forward with the project on terms that are consistent with the Federal Loan Guarantee announced on November 30, 2012. The Federal Loan Guarantee provides a direct benefit to Nova Scotia electricity customers by lowering Emera’s borrowing costs for the project. This will save more than one hundred million dollars in financing costs over the 35-year period, all of which will be passed on directly to customers.
“Today’s announcement underscores our confidence in the benefits of this truly regional and transformative project,” said Chris Huskilson, President and CEO, Emera Inc. “Emera firmly believes that this project is the best and lowest cost option for Nova Scotia, and that it will be an important component in meeting the province’s clean energy needs for generations to come.”
Recovery of costs on the Maritime Link project from NS customers remains subject to regulatory approval in Nova Scotia. The project partners have committed to ensure that the Maritime Link is built under the terms of The Sanction Agreement. These terms include:
- Agreement on a mechanism for dealing with adjustments to rate of ROE
- Settlement mechanism for payment on the 80/20 true up
- Agreement on the conditions under which Emera’s investment in the Labrador Island Transmission Link is assured
- Agreement on cost sharing of the Federal guarantee payment
- A copy of the early sanction agreement will be available online this evening at www.emeraNL.com
“Today’s agreement to sanction the project preserves the benefits of the Federal Loan Guarantee for Nova Scotians while upholding the role of the regulator in Nova Scotia,” said Mr. Huskilson. “Emera is applying to the UARB for a full review of the Maritime Link project to ensure Nova Scotia electricity customers receive the lowest-cost option for long-term renewable energy. We look forward to filing our complete application with the UARB next month and fully explaining the benefits of this project to customers in Nova Scotia.”