Province of Nova Scotia Electricity Marketplace Governance Committee First Interim Report

This report summarizes the group discussions of the Electricity Marketplace Governance Committee's (EMGC) over the past 6 months regarding the implementation of new rules for power competition in Nova Scotia's electricity market. Emphasis has been placed on external influences, defining the size and form of the short-term competitive portion of the Nova Scotia market, and a detailed consideration of the current transmission system and the changes needed to achieve a sustainable, world class energy sector that would enhance the quality of life for Nova Scotians. The report provides recommendations regarding how competition can be encouraged. The main drivers for electricity restructuring have been energy efficiency, risk-allocation, reliability, environmental impact, and consumer protection. The external influences on the Nova Scotia electricity market include: (1) economics of electricity restructuring, (2) the Federal Energy Regulatory Commission, (3) New Brunswick and electricity restructuring, and (4) Nova Scotia and the energy strategy. This report described the market scope and basic market model with reference to bilateral contract market, fully competitive wholesale pool market, and a single buyer market. The transmission issues discussed in this report included the importance of transmission, transmission tariff options, transmission services offered, design issues, and congestion management policies. The EMGC was directed to examine market design issues to accommodate an Open Access Transmission Tariff (OATT). As such, this report identifies some transmission issues that must be resolved to implement tariffs, and conditions of access to the transmission system and its impact on open access market design. The final report is expected to be available in March 2003