What is securitization, anyway?
Making and delivering energy is complex and the energy landscape in our province is evolving. Transitioning Nova Scotia's electricity system takes time, planning, and money. Things like the financing of our thermal assets, purchasing of fuel to make electricity, and the establishment of the Independent Energy System Operator (IESO) are all critical endeavours to delivering safe and reliable energy to the homes and businesses across our province.
While these transitions mean building a stronger, cleaner, more modern grid for today and future generations, it also means making important decisions right now. Our role is to not only meet the future needs of customers, but most importantly to manage costs and to keep bills as low as possible for you, our customers.
As part of the previously approved General Rate Application (GRA), we proposed a financing approach called "securitization" to help keep power bills lower, which has now been filed with the Nova Scotia Energy Board. If approved, this new affordability measure will help save customers money by enabling lower interest rates than traditional utility financing options. Lower financing costs mean lower costs for Nova Scotians over time.
We know that the rising costs of living are affecting Nova Scotians in a very real way. And we know that a financing tool like securitization are new, so here are some answers to the questions you're asking us.
What is securitization?
Securitization is a financial tool that's designed to keep rates lower for customers. It's a financing tool that will allow us to refinance certain existing costs using lower interest rate bonds and pass those savings onto our customers. It's like moving your credit card balance to a lower interest rate loan; the amount is still owed, but you are charged less interest.
Why are you filing for securitization?
Affordability is a real concern for Nova Scotians. Securitization is a way to keep rates lower over time.
The Province of Nova Scotia has developed a securitization framework that allows certain costs associated with the energy transition to be financed differently than usual. These include coal units and related assets, some of the fuel costs used to produce electricity, and set up costs associated with the Independent Energy System Operator (IESO).
Using securitization means these costs can be financed at a lower interest rate, which helps reduce the overall amount customers pay over a period of 30 years.
What would be the impact to rates without securitization?
We have been focused on finding a solution that would have the lowest possible impact on your rates. Without securitization, we know that the cost of financing the assets and other costs would mean larger impacts on customer rates, which is why we needed to find a better solution.
Is this a new cost for customers?
No, these costs were already approved by the Energy Board to be shared with customers. Securitization uses lower-cost financing to help reduce the overall cost to customers.
What will change on my bill if the Energy Board approves the filing?
If approved by the Energy Board, a separate charge for securitization, called a rider, will be included on your bill. The rider is expected to be 2.9% for residential customers.
Why is there a rate increase when it's meant to keep rates as low as possible?
The rider is a new line item, not a new cost. The costs already exist and would need to be recovered from customers. While there is a separate charge on the bill, securitization allows these costs to be financed at lower interest rates, making customer rates lower than they would be otherwise.
Think of how a mortgage or loan has a start date. Securitization also needs a start date, which if approved would be January 1, 2027.
What stage of the process and approvals are you at right now?
On October 9, 2026, we filed an application with the Energy Board seeking approval to use the financing tool securitization to lower costs for customers. This approach was approved in principle as part of the last General Rate Application (GRA). This filing is the next step in this process. We are seeking approval to finance existing approved energy-transition and related costs through securitization.
If approved by Energy Board, a rider would appear on your bill beginning on January 1, 2027. Based on our application, the proposed rider would be 2.9% for residential customers. This is separate from the 3.9% increase for 2027 that has been approved through the GRA.
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