Nova Scotia·NewNova 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.Proposal still has to go before the regulator for approvalTaryn Grant · CBC News · Posted: Sep 02, 2025 11:09 AM EDT | Last Updated: 1 hour 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.The average rate increase for all customers would be 2.1 per cent for each of the next two years, with the residential rate going up about 4.1 per cent each year. 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.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
Nova Scotia Power proposes single-digit rate hikes for next 2 years
