Nova Scotia Power has submitted an application to the Nova Scotia Utility and Review Board seeking a general rate increase over the next three years.
If approved, residential customers would see an average annual rate increase of 3.3 per cent, or about $5 per month, for 2022, 2023 and 2024.
Nova Scotia Power's president and CEO Peter Gregg said this is the first general rate application the utility has filed in a decade.
"I want our customers to know, we don't take decisions of raising rates lightly. We understand the impact that rates increases can have on our customers, and it's been a huge consideration as we've contemplated filing this application," he said Thursday.
Nova Scotia Power says the extra funds are needed to cover an increase in severe weather events, improve reliability and meet clean energy goals, including phasing out coal fired electricity.
"We're embarking on the largest transformation in our company's history," Gregg said. "We're essentially taking a system that took us approximately 50 years to build, and the challenge will be to transform that system in less than 10 years."
"That means we need change how we make, deliver and store electricity, and we need to continue to strengthen and modernize our electricity system so it can stand up to changing weather and meet the energy needs of our customers."
Nova Scotia Power says there will be opportunities for people to provide feedback during a public review process, which will take place before the UARB makes a final decision.
If approved, the review board will determine when this year's rate increase will kick in, which the utility says likely wouldn't be until August. For 2023 and 2024, the increases would take effect on the first day of those years.