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Point Tupper Grid Connection
EverWind Fuels signed two documents on Nova Scotia Power laying out conditions for connecting its proposed $8-billion data centre campus in Point Tupper to the provincial grid.
The service contract for the first phase of the project specifies that the electric service will be interruptible. This means the utility or the future grid operator can direct EverWind to shut off its demand with 10 minutes of notice.
Other large industrial customers share similar interruptible load arrangements to protect residential customers when the electrical grid experiences strain. EverWind plans to install on-site batteries and a diesel generator as backups.
Protecting Nova Scotia Ratepayers
Many Nova Scotians expressed skepticism since Nova Scotia Power struggles with performance standards and household rates remain high. The newly released documents show both companies put their protection assurances in writing.
“For us, it was really critical that our commitment to protecting other ratepayers and the method in which that would happen was memorialized,” Brendan Chard, EverWind’s vice-president of power, told CBC News.
A service contract is standard practice for new non-residential customers, according to the utility. The additional letter agreement was created to provide more context for the massive project.
“Because we haven’t had a customer of this size connect in many years, the additional letter agreement was developed to provide more context to the [contract],” Nova Scotia Power spokesperson Jacqueline Foster said via email.
EverWind Pays Incremental Costs Under Interim Tariff
The letter agreement clarifies that the data centre will not raise electricity rates for other customers. EverWind agreed to pay incremental costs reasonably attributable to the new load.
“EverWind and Nova Scotia Power Inc. agree that during any period in which EverWind takes service under the interim tariff, EverWind is responsible for the incremental costs, if any, to other customers that are reasonably attributable to the new load on the system,” the letter says.
The exact manner of tracking and paying these costs requires approval from the Nova Scotia Energy Board. The interim tariff currently in use applies to other large industrial customers until the energy board reviews the case.
Foster said that a new tariff will need to be developed because the existing one was not designed for a customer of EverWind’s scale. Regulators, the Independent Energy System Operator-NS, and data centre proponents will collaborate on that tariff application.
Protesters Gather to Oppose Data Centre Development
Hundreds gathered in the rain outside Province House in Halifax last weekend to protest the proposed data centre development. Power rates in other jurisdictions have climbed alongside the introduction of energy-intensive data centres.
Chard argued that Nova Scotia’s highly regulated electricity market makes avoiding rate increases much easier. The utility operates under a cost-of-service model regulated by the Nova Scotia Energy Board.
Scott Balfour, head of Emera, Nova Scotia Power’s parent company, spoke about the project during a quarterly earnings call. He said that large load customers can help support system investments and spread costs across a broader customer base.
“Large load customers can help support investments in the system and spread costs across a broader customer base,” Scott Balfour said on a quarterly earnings call for Emera last week.
Point Tupper Project Questions Answered
What is an interruptible load agreement?
An interruptible load agreement allows the utility or grid operator to direct a heavy power user to turn off its electricity demand with 10 minutes of notice. This mechanism protects residential customers from outages when the grid experiences high strain.
Who regulates the electricity rates in Nova Scotia?
The Nova Scotia Energy Board regulates rates using a cost-of-service model. The board reviews the utility’s reported costs and calculations before determining the final rates charged to different customer classes.
How does EverWind plan to handle power interruptions?
EverWind has proposed installing on-site batteries and a diesel generator to serve as backup power sources when the utility directs them to cut their grid demand.
How the Cost-Of-Service Model Protects Other Ratepayers
Did you know?
Nova Scotia Power uses a cost-of-service model where the Nova Scotia Energy Board calculates and approves what rates can be charged based on the cost to serve each specific rate class.
Chard said that it remains difficult to predict the final structure of the new tariff. However, he emphasized that the project’s foundational rule stays intact.
“What will not change is our commitment to not putting any costs on other ratepayers,” Chard said.
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