Nova Scotia Power’s rate hikes approved pending adjustments

The saga continues in Nova Scotia Power’s application to raise residential rates.

On Tuesday, the Nova Scotian Energy Board approved the provincial utility’s application pending adjustments that will hold the company’s increase “slightly lower” than what was proposed.

The provincial regulator noted it decided adjustments were needed to keep customer rates fair and reasonable in 2026 and 2027, and will direct the utility in implementing them.

The privately-owned electric utility was seeking a 3.8 per cent power rate bump retroactive to Jan. 1, and a 4.1 per cent hike that would come into effect Jan. 1, 2027.

Premier Tim Houston strongly disagrees with the decision, saying it “is out of touch in every way.”

“I expected more from the board, particularly after such an extensive hearing where expert after expert presented clear evidence on why the board should exercise its authority and reject Nova Scotia Power’s request,” the premier said in a statement.

Houston said that Nova Scotians have the right to feel angry and let down by the board.

“At a time when people are already dealing with the fallout of a cyber breach that put their personal information at risk, billing systems producing estimates they don’t trust, and real anxiety about what their next power bill will look like, now is not the time for a rate hike.

“Even if Nova Scotia Power failed to recognize this, the board had the evidence it needed to do so. Instead, it rewarded bad behaviour,” Houston said.

Nova Scotia Power has been ordered to make adjustments and report back with new rates.

The board determined that some of the costs the utility requested to pass on to customers should be reduced or eliminated.

Among the adjustments ordered by the board to ensure rates are just and reasonable are a further $8 million reduction in operating, maintenance, and general expenses in each of 2026 and 2027 (over and above the $9 million outlined in the settlement agreement), a reduction in the utility’s proposed executive compensation in both 2026 and 2027, and a $1.8-million reduction in fuel and purchased power costs.

Nova Scotia Power insisted the increases are needed to strengthen the grid, expand tree-trimming and improve its response to extreme weather events.

Houston says the decision highlights a need to reduce reliance on the utility, touting his government’s plans for onshore natural gas developments and wind projects.

More politicians and other critics have slammed the request.

They have pointed out that household income is stagnant and that public trust is at an all-time low following a cybersecurity breach at the utility last April.

With files from the Canadian Press