Testimony Regarding Nova Scotia Retail Market Implementation Costs
The Nova Scotia Energy Board retained Synapse to submit evidence on behalf of Board Counsel regarding how to secure the costs of establishing a retail electricity market in the province. Nova Scotia Power had requested a letter of credit from Renewall—the only licensed retailer—for the full $6.4 million anticipated cost of setting up the Renewable to Retail market. The Board had previously ordered Renewall to recover these costs through retail tariffs once the market became operational. However, the market has taken longer than expected to establish, delaying the enrollment of retail customers. Synapse argued that requiring a letter of credit could pose a barrier to market entry and hinder the development of retail competition in Nova Scotia. The Board cited Synapse’s evidence in its decision, ultimately denying Nova Scotia Power’s request for a letter of credit.