3rd Session, 61st General Assembly
60 Elizabeth II, 2011
First Reading: October 31, 2011
This Bill sets out what the Nova Scotia Utility and Review Board must take into account, and not take into account, in determining the allowable return on common equity included in the general rate set for an electric public utility.
1 This Act may be cited as the Ratepayer Fairness Act.
2 Chapter 380 of the Revised Statutes, 1989, the Public Utilities Act, is amended by adding immediately after Section 45 the following Section:
(a) results in a return on common equity that is fair to electricity ratepayers;
(b) includes comparisons to
(ii) the risk-free rates of return yielded by Government of Canada long-term bonds;
(c) takes into account an equity-risk premium appropriate to the electricity industry and to the regulatory environment enjoyed by the utility; and
(d) takes into account a separate fuel-adjustment mechanism.
(2) The Board shall not consider the results of a settlement conference or an agreement reached by an electric public utility’s stakeholders in establishing an allowable return on common equity for the utility.