Nova Scotia·UpdatedNova Scotia Power says it will apply later this month to raise rates in both 2026 and 2027 to help pay for $1.3 billion in maintenance and improvements to the electricity grid, while continuing to hit the publicly traded company’s target profit margin.Residential rate would go up about 4.1% each year, lesser increases for commercial and industrial customersTaryn Grant · CBC News · Posted: Sep 02, 2025 11:09 AM EDT | Last Updated: 33 minutes agoNova Scotia Power needs the energy board’s approval to raise rates. (The Canadian Press)Nova Scotia Power says it will apply later this month to raise rates in 2026 and 2027 to help pay for $1.3 billion in maintenance and improvements to the electricity grid, while continuing to hit the publicly traded company’s target profit margin — a proposal that has quickly drawn the ire of provincial politicians.The residential rate would go up about 4.1 per cent each year, while commercial and industrial customers would see lesser increases, for an average rate increase of 2.1 per cent. The rate hikes would take effect on Jan. 1 of each year.The utility sent a letter to the clerk of the Nova Scotia Energy Board on Tuesday, notifying her that a general rate application would be filed in the coming weeks. General rate applications are made on an ad hoc basis by the utility when it wants to raise rates to reflect changing operating costs and ensure the company continues to earn its target of nine per cent return on equity.Once the application is made, the board, which is Nova Scotia Power’s regulator, will then have the opportunity to assess the proposed rate increases and question the utility before deciding whether to grant approval.Politicians blast the proposalNova Scotia Premier Tim Houston responded by blasting Nova Scotia Power.In a statement issued by his office Tuesday afternoon, Houston called the utility “out of touch” and said this is not an appropriate time for a rate increase.”After overseeing one of the largest data breaches in our province’s history, asking Nova Scotians to pay more should not be the utility’s first move,” the statement read, in part.Nova Scotia Premier Tim Houston says Nova Scotia Power is ‘out of touch.’ (Darren Calabrese/The Canadian Press)Houston was referring to a cybersecurity breach that took place earlier this year, when thieves stole the personal information of hundreds of thousands of Nova Scotia Power customers from the utility’s servers and networks and shared it on the dark web.Houston called for the utility to walk back or “significantly reduce” the proposed rate increase.The response is not the first time the utility and the Houston government have clashed. The Progressive Conservative government has been critical of past rate increases and even passed legislation to put a cap on rates, profits and spending. Opposition parties also responded to Nova Scotia Power’s proposal with harsh criticism, but not exclusively for the utility. They also blamed the governing PC Party.NDP Leader Claudia Chender said in a statement that the news of potential rate increases “is almost unbelievable to Nova Scotian families who are already paying some of the highest energy costs in the country.”She called the proposal “unmanageable,” and said the Houston government’s interventions on power rates “have been a failure.”Interim Liberal Leader Derek Mombourquette questioned the sincerity of Houston’s response.”It’s damage control for allowing this situation to get out of hand,” Mombourquette said in a statement.”When bills go up, Nova Scotians aren’t just paying for Nova Scotia Power’s mistakes. They’re paying for government inaction.”Tufts Cove generating station in Dartmouth is seen in this file photo. (Andrew Lam/CBC)Months of discussion led to proposed hikesIn an emailed statement, Nova Scotia Power said the proposal comes out of six months of discussions with customer representatives including advocates for consumers and small businesses, as well as Port Hawkesbury Paper — the utility’s largest industrial customer — and several municipal electric commissions.”We appreciate the time and effort that has gone into the discussions over the last several months to strike a critical balance of affordability for our customers while continuing to invest in the grid to ensure customers have service they can count on,” the statement said.A news release from Nova Scotia Power said the application will include more details about the “critical reliability investments” that it says are required for the grid. Generally, it said the work includes storm hardening, vegetation management and grid modernization.The two rate hikes are meant to cover the first two years of a five-year grid reliability plan.ABOUT THE AUTHORTaryn Grant covers daily news for CBC Nova Scotia, with a particular interest in housing and homelessness, education, and health care. You can email her with tips and feedback at taryn.grant@cbc.ca
Politicians condemn Nova Scotia Power’s proposal to hike rates over next 2 years
