Memorandum of understanding on maritime regional electricity cooperation and system integration

The Provinces of New Brunswick, Nova Scotia, and Prince Edward Island (the "Parties") share a commitment to ensuring reliable, affordable, and sustainable electricity systems for their citizens as highlighted in Canada’s National Strategy for an Electrified Canadian Economy.

The Parties recognize the increasing complexity of electricity systems driven by growing demand, electrification, and the transition to clean energy.

The Parties further recognize that enhanced regional cooperation offers opportunities to improve affordability, optimize investments, and strengthen system efficiency and resilience.

Whereas the Parties electricity systems are distinct yet interconnected and have a history of collaboration on specific grid planning projects and limited grid operations;

Whereas the parties met in June and agreed to work together and the Federal government agreed to provide resources to help facilitate the work.

Whereas there are existing agreements on operational plans (for example major outage response), Open Access Transmission Tariffs, and contracted Power Purchase Agreements (PPA) between provinces;

Whereas there is complementary work underway committed to by Energy and Mines Ministers to advance collaboration on interties;

Whereas significant investments in electricity infrastructure are required to support economic growth, energy security, and decarbonization that could benefit from regional cooperation and federal support;

Whereas a systems planning approach across supply, demand, transmission, and operations may deliver improved outcomes for all Parties and greater affordability and reliability for customers; and,

Whereas there exist regulatory, legislative, and operational barriers that may limit regional optimization and must be identified and addressed.

The purpose of this work is to:

• Gather the baseline related to current individual system planning and operations and identify parties that are responsible, identify current relationships;
• Validate the costs and benefits of regional planning and cooperation in the Maritime electricity sector through the optimized use of generation, transmission, demand-side resources, as well as potential future coordinated dispatch of resources;
• Identify and recommend ways to address regulatory, legislative, and operational barriers/opportunities to regional integration;
• Evaluate the establishment of a Regional Balancing Authority and a Maritime Independent Electricity System Operator (MIESO); and,
• Develop a practical implementation roadmap for regional cooperation and integration that provides optimal benefits for all parties, respects provincial policy objectives, and supports the continued economic value of regional and international electricity exports. 

The Parties recognize the following principles for guiding this work:

• The regional approach is aimed at ensuring more resiliency/reliability, supporting lowest cost for customers, and improving collaboration.
• One province’s customers cannot subsidize another province’s customers on an on-going basis.
• Fair and efficient and movement of electricity with appropriate allocation of costs.
• Fair and efficient access to capacity during periods of limitations.
• Fair and efficient recovery of generation/transmission costs.
• Engagement with rights holders and stakeholders, as appropriate.

By Fall 2026, the parties commit to delivering:

• An initial Maritime Regional Resource and Transmission Roadmap (Phase 1) identifying opportunities for regional coordination across generation, transmission, demand-side resources, and emerging energy resources.
• An initial cost/benefit analysis of enhanced regional planning and operational coordination, including options for a Maritime Independent Electricity System Operator. This analysis should include an early assessment of the risks, and implementation considerations.

By Spring 2027, the parties commit to:

• Develop and advance a Maritime Regional Resource and Transmission Roadmap and Plan (Phase 2) to improve grid planning and operation covering electricity generation, transmission and demand-side measures, including consideration of emerging energy resources and associated system and transmission requirements
• An assessment of regulatory, legislative, governance, operational, and cost-allocation issues requiring resolution to advance regional integration.
• A phased roadmap with near-, medium-, and long-term actions, including recommendations on priority initiatives that can be advanced within existing regulatory and governance frameworks.
• Validate the costs and benefits of regional cooperation including consideration of regional planning and operations, a regional balancing authority and the potential implementation of a Maritime IESO. This would include a decision on the implementation path for a Maritime IESO, which could include the continuation of individual provincial control centres.
• Develop solutions including governance, policy, or legislative changes for all options. Ensure solutions are action-oriented and implementation-ready.

The work is intended to be completed by Spring 2027 and go beyond a report with recommendations. Instead, it will focus on near-term implementation actions that all parties agree to, first within existing regulatory structures, and then moving to more complex options.

A Deputy Ministers Steering Committee, with the following members, will provide oversight and direction and identify the Lead Advisor(s).

• New Brunswick: Deputy Minister, Department of Energy
• Nova Scotia: Deputy Minister, Department of Energy
• Prince Edward Island: Deputy Minister, Transportation, Infrastructure and Energy
• Lead Advisor(s)

A Maritime Regional Electricity Cooperation and Planning Working Group, led by external Lead Advisor(s), will report to the Steering Committee and coordinate all analysis and planning work. Membership will include:

• Assistant Deputy Minister, New Brunswick Department of Energy
• Executive Director, Energy Planning, Nova Scotia Department of Energy
• Director, Energy Assets, PEI Energy Corporation

The Lead Advisor(s) will lead the work of the Working Group and briefings back to Deputy Ministers. The Lead Advisor(s) will have a mandate to deliver a solutions-oriented implementation plan. They will actively shape the scope of work, consideration of external advisory support needs, and sequencing of the work.

A Utilities-ISO Committee will feed into this work, as directed by the Deputy Ministers Steering Committee and Maritime Regional Electricity Cooperation and Planning Working Group. Membership may include:

• NB Power
• NS Power
• Maritime Electric
• IESO Nova Scotia

It is understood that the Government of Canada will assist in convening partners, providing advice/perspectives in areas with a stronger federal interest (e.g., interties), and will contribute to funding for Lead Advisors, other advisory support and future considerations.

Susan Holt
Government of New Brunswick

Rob Lantz
Government of Prince Edward Island

Tim Houston
Government of Nova Scotia