Bill to Allow Nova Scotia Power to Reorganize

A bill allowing Nova Scotia Power to reorganize its corporate structure was introduced in the legislature today.

The utility has said it wants some flexibility to expand. The bill allows the company to do that, while at the same time retains key restrictions imposed when it was privatized six years ago.

Nova Scotia Power Inc. says the new structure will have no impact on its employees, customers or the price of electricity. The reorganization would separate the electrical utility business from the company's other business interests.

The new company, Nova Scotia Power Holdings Inc., would be required to maintain its head office in Nova Scotia and face the same restrictions on ownership that Nova Scotia Power currently abides by. The province's Utility and Review Board will continue to set electricity rates.

Nova Scotia Power says it believes the new structure would allow it greater freedom in pursuing business opportunities outside the province and in areas outside of producing and selling electricity.

While the bill would permit these changes, the reorganization would require approval of the company's shareholders.

<b>Text of Nova Scotia Power Reorganization (1998) Act (Bill No. 87)</b>

jmg Nov.23, 1998 6:30 p.m.