Nova Scotia Power (“NS Power”) is proposing to introduce a new tariff, known as the Extra Large Industrial Active Demand Control (“ELIADC”) Tariff for its largest customer, Port Hawkesbury Paper (“PHP”). PHP accounts for approximately 10% of system load.
The ELIADC tariff, by providing greater control to NS Power over PHP’s load, will provide NS Power with improved system flexibility, which is going to become increasingly important as a means of effectively integrating intermittent renewable generation resources once renewable energy imports become a bigger part of the resource mix in the province, displacing existing fossil fuel based generation. NS Power forecasts that the improved load flexibility enabled by the ELIADC tariff will lead to overall system cost savings which cannot be achieved under the existing PHP Load Retention Tariff (LRT).
In this report, we provide an assessment of NS Power’s proposed ELIADC tariff. First, we present our understanding of the key features that differentiate the proposed ELIADC tariff from the existing LRT and explain the advantages of the ELIADC tariff. Second, we discuss an emerging industry trend toward “load flexibility” programs similar to the ELIADC tariff. Third, we conclude with our assessment of the ELIADC tariff.