BILL 9

An Act to Amend the Electricity Act

His Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 The Electricity Act, chapter 7 of the Acts of New Brunswick, 2013, is amended by adding the following after section 139.4:

Nuclear pre-development deferral account

139.41( 1) The following definitions apply in this section.

“nuclear pre-development activities” means, for the purposes of a new nuclear program at the Point Lepreau Nuclear Generating Station, activities related to (activités de pré-développement nucléaire)

(a)  site evaluation and assessment,

(b)  assessment of any applicable regulatory requirements, including those relating to the environment,

(c)  engagement with First Nations,

(d)  community engagement,

(e)  technical or commercial planning,

(f)  planning in order to meet regulatory requirements, and

(g)  any other activity prescribed by regulation.

“pre-development costs” means the costs incurred to conduct nuclear pre-development activities. (coûts de pré-développement)

139.41( 2) The Corporation shall establish a nuclear pre-development deferral account that records the pre-development costs and the expenses and offset amounts determined by or in accordance with the regulations.

139.41( 3) The Corporation shall maintain the account in accordance with the operating parameters prescribed by regulation.

139.41( 4) The Corporation is required to maintain books and records necessary for maintaining the account.

139.41( 5) The Board shall ensure that

(a)  the balance in the account reflects only the following:

( i) pre-development costs;

( ii) expenses determined in accordance with the regulations;

( iii) offset amounts determined by regulation;

( iv) financing costs incurred by the Corporation in relation to the balance in the account,

(b)  the balance in the account is supported by the books and records referred to in subsection (4), and

(c)  the amount recorded in the account for any fiscal year does not exceed the maximum amount prescribed by regulation that may be recorded in the account for that fiscal year.

139.41( 6) Subject to subsection (7), the Board shall ensure that the balance recorded in the account shall not be recovered by the Corporation.

139.41( 7) The Board shall ensure that the balance in the account shall be reflected in the rates charged by the Corporation in respect of the services referred to in section 102 on and after April 1, 2030.

139.41( 8) On and after April 1, 2030, the amounts recorded in the account maintained under subsection (2) shall be deemed to be part of the revenue requirements of the Corporation and shall be deemed to be necessary for the provision of the services referred to in section 102.

139.41( 9) For the purposes of an application to the Board for approval of a change in rates for its services referred to in section 102, the Corporation shall present its revenue requirements in a manner that the pre-development costs, expenses, offset amounts and financing charges associated with the deferral account are shown separately from the other revenue requirements of the Corporation.

139.41( 10) The recovery of the pre-development costs, expenses, offset amounts and financing charges are deemed to be just and reasonable for purposes of section 103.

2 Subsection 142(1) of the Act is amended by adding after paragraph (o.01) the following:

(o.011)  for the purposes of the definition “nuclear pre-development activities” in subsection 139.41(1), prescribing any other nuclear pre-development activity;

(o.012)  for the purposes of section 139.41, respecting the nuclear pre-development deferral account, including

( i) the operating parameters for the account, including

( A) determining expenses and offset amounts,

( B) applicable accounting methods,

( C) methods of calculating pre-development costs and expenses and the deductions to be made in calculating the costs and expenses, and

( D) rules for the application of financing costs to the account balance,

( ii) the recovery of the balance of the account, including

( A) any applicable amortization period, and

( B) the method of recovery from the rates charged by the Corporation,

( iii) the auditing and oversight requirements, and

( iv) the maximum amount that may be recorded in the account for any fiscal year;

Commencement

3 This Act comes into force on April 1, 2027.