Government of Nova Scotia Considers New Regulatory Model for Nova Scotia Power
September 22, 2026
The Province is considering a new regulatory model for Nova Scotia Power to help improve affordability, reliability and accountability in Nova Scotia’s electricity system.
Legislation introduced today, September 9, outlines an independent review of performance-based regulation, an approach that ties a utility’s earnings to its performance rather than its costs. The Nova Scotia Energy Board will lead the review.
Under the current cost-of-service model, Nova Scotia Power is allowed to recover approved operating costs, capital investments and a return on equity.
The board’s review will assess performance-based regulation, its potential benefits and risks, and how it could be adapted for Nova Scotia’s system. The review will consider:
- the protection of ratepayers and the maintenance of reasonable rates
- performance measures related to sustainable development, energy efficiency and emissions reductions
- performance measures related to efficiency, cost-effectiveness, safety, reliability, resilience, innovation, customer service, quality of system operations, and management
- impacts on different classes of customers
- Nova Scotia Power’s opportunity to earn a fair rate of return and how a new model would impact capital spending, cost recovery and risk.
Nova Scotia Power has been tracking and reporting reliability and storm response performance measures data since 2016, providing good baseline data and experience for the review. The board will provide recommendations on design and implementation. Once the review is completed, the government will make a decision on performance-based regulation and determine the next steps. The review process is expected to begin 30 days after the bill comes into force, and the final report will be made public. This review is another part of the government’s plan to modernize the electricity system.
Over the past five years, the Province has created the Independent Energy System Operator, advanced the Clean Power Plan and restructured the Nova Scotia Energy Board.
