Natural Gas to All Nova Scotia Counties

Premier Russell MacLellan has released plans to ensure natural gas is made available in all 18 counties of the province within seven years.

The plan is contained in regulations and a policy document, titled Nova Scotia Natural Gas Delivery, approved by cabinet.

"This is a provincial resource," Premier MacLellan told a news conference today at Province House. "We will ensure that the benefits are shared across Nova Scotia."

The regulations set as a minimum requirement of obtaining a natural gas franchise that 62 per cent of Nova Scotian households have access to gas within seven years. The Utility and Review Board will use the policy and regulations to screen applications for natural gas franchising rights in the province.

The government has also insisted that franchisees charge comparable rates for natural gas across the province.

"We want to see level rates across Nova Scotia. If it can be done with telephone bills and power bills, there is no reason they can't do it with gas," said the premier.

The government will demand a detailed benefits package committing successful applicants to maximizing employment and purchasing within the province. The adherence to the benefits package, and a detailed timetable for distribution, will be conditions of any licence. Franchise recipients will also be required to have Nova Scotians form the majority on their boards of directors and provide opportunities for Nova Scotians to become shareholders in the company.

It is estimated the distribution system will cost between $500 million and $600 million. All of the money will come from private sources; no government money will be required. The distribution system will employ about 500 people.

The Utility and Review Board is expected to soon call for formal applications and begin the hearing process. Municipalities and co-operatives will not have to pay application fees to the board if they apply to become distributors for their residents and customers.

"People living in rural Nova Scotia will have the same opportunities and benefits as those who live in the urban core," said Premier MacLellan. "We have guaranteed equality by insisting on a single rate, no matter where you live. In seven years, 62 per cent of households will have the option of using natural gas. All of this, and without one cent of taxpayers' money being put at risk."