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There is a lot of discussion about energy and power rates in Nova Scotia, and it's important that Nova Scotians have the facts so they can make their own informed opinions and decisions about energy policy and their own energy use. The Q&A below is meant to provide information based on common questions and issues and we make updates based on input from customers.

Last updated: January 30, 2026

Why does Nova Scotia Power need to increase power rates?

Reliable power is essential for homes, businesses, and communities across Nova Scotia. The solution we—and all customer representatives—put before the Energy Board balances essential reliability investments with the need to keep power rate increases low for customers. We are requesting an average increase of 2% per year across all customer rate classes. For residential customers this would be an increase of 3.8% in 2026 and 4.1% in 2027. In keeping with the independent regulatory process in Nova Scotia, the Energy Board will now evaluate all the evidence and ultimately set rates for customers.

Why do electricity prices differ so much between jurisdictions?

Key cost drivers include access to low‑cost hydro or nuclear power, exposure to weather and storms, customer density, and government policies and subsidies. While larger population centres such as Halifax, Sydney, Bridgewater, and Truro benefit from higher customer density, the geography and rural nature of many Nova Scotian communities mean that customers are more spread across the province. Combined with more limited access to low‑cost hydro resources and increasing storm impacts, these factors contribute to higher system and service costs.

How does Nova Scotia Power’s requested rate increase—an average rate increase of 2 percent across customer classes in 2026 and 2027—compare to other jurisdictions? 

Recent increases for other major utilities in the Atlantic provinces have included:

• NB Power’s residential rates increased by 12.7% in 2024 and were raised again on April 1 by 9.7%.
• In Newfoundland, there were increases in 2024 for Newfoundland Power and Newfoundland Hydro of 6.8% and 7%, respectively, with an additional rate increase of 7% for both utilities effective July 1, 2025.

Nova Scotia Power has applied for increases in Nova Scotia that average 2% per year across all customer classes. For residential customers in Nova Scotia, the proposed increases are 3.8 percent and 4.1 percent in 2026 and 2027, respectively, for residential customers in Nova Scotia.

How does your requested increase to power rates compare to recent price changes for other essential needs and services?

In Nova Scotia, grocery prices have risen between 2.7% and 4.7%, telecom services by over 12%, and subscription related costs by roughly 3%. In Halifax, other utilities such as Halifax Water are also increasing by more than 18% in 2026.

The overall cost of living in the province rose about 2.1 to 3.1% over the past year (Government of Canada CPI).

Are there low-income rate programs in Nova Scotia, and how does that compare elsewhere? 

Who oversees Nova Scotia Power and how are decisions made?

The Nova Scotia Power Board of Directors provides oversight and governance to the leadership team at Nova Scotia Power, and the Nova Scotia Energy Board provides independent regulatory oversight based on laws provided by the Province of Nova Scotia. Rates, capital investments, and returns are reviewed through public filings and hearings that include testimony from Nova Scotia Power and third-party experts as well as questions from various intervenors. Decisions are made openly and are publicly available at nseb.ca.

How are electricity rates set through the public process?

Rates are regulated and reviewed through a public process. Nova Scotia Power must apply to the Nova Scotia Energy Board to change power rates through a process called a General Rate Application. Power rates reflect the real cost of producing and delivering electricity in Nova Scotia. The Board examines evidence in open hearings and issues public decisions.

We know that there is never a good time to request an increase in electricity rates and that even small increases can have a big impact on families and businesses. The reliability of the service we provide has never been more important to our customers. The focus of our current rate application is improving reliability for customers through investments in our system. In keeping with the regulatory process in Nova Scotia, the Energy Board will evaluate all the evidence and ultimately set rates for customers.

More information on the current General Rate Application before the Energy Board >
 

What is return on equity and who decides the allowed amount?

Return on equity (ROE) is the allowed return Nova Scotia Power can earn on shareholder invested capital in the electricity system. It is set by the Nova Scotia Energy Board and reviewed through public hearings with various intervenors. The company is only allowed to earn up to 9.25% return for shareholders and has largely earned well below this cap since 2019. In 2024 Nova Scotia Power earned 8.4%.

For comparison with other utilities, see the table below:

Is profit guaranteed for Nova Scotia Power?

No. The return approved by the regulator is a maximum allowed amount, not a guarantee. Some costs are not allowed to be recovered, and actual returns can be lower than the approved return. Performance is reviewed over time. Since 2019, we have earned below the maximum allowable return-on-equity 9.25% each year.

What is Nova Scotia Power’s credit rating, why does it matter, and how does it compare to similar utilities?

Credit rating agencies such as S&P currently rate Nova Scotia Power at a BBB- with a negative outlook. It is the lowest among regulated utilities in Canada and among the lowest in North America. The average credit rating for a regulated utility in North America is BBB+. A lower credit rating increases borrowing costs, which, according to how we are regulated, can increase costs and in turn also customer rates.

What is securitization and how could it affect customer bills?

Securitization is a financing tool that can help lower costs for customers. It allows a utility to refinance certain existing costs using lower‑interest bonds, rather than recovering those costs through traditional utility rates.

Nova Scotia Power is proposing securitization as part of its 2026 General Rate Application to help pay for retiring infrastructure, including coal plants that still have more than $700 million in remaining value. That remaining value reflects past policy decisions that extended the life of these assets to help keep rates lower in earlier years.

If approved through a separate regulatory process, securitization is expected to reduce overall financing costs. This could result in approximately $90 million in customer savings over the first two years and about $225 million over 30 years.

Securitization would also reduce Nova Scotia Power’s profit opportunity. The proposal is intended to lower long‑term costs and help minimize impacts to customer bills while supporting the transition away from coal.

Where does my money go when I pay my power bill?

Nova Scotia Power is a regulated ‘cost-of-service' utility, meaning that what customers pay goes directly to the power system: fuel and purchased electricity, maintaining equipment like poles, wires, and substations, storm response and restoration, and system upgrades and reliability improvements. A significant portion of electricity is also purchased from third-party generators under long-term contracts to meet clean electricity requirements, as determined by government. A portion of what customers pay also goes towards a regulated and capped return for shareholders. There is a common misconception that the company earns “guaranteed profits”. Profits are not guaranteed. The company is only allowed to earn up to 9.25% return for shareholders and has earned below this cap since 2019.

Why do fuel costs affect rates?

The fuel used to generate electricity is a direct pass-through cost to customers with no mark-up. Customers pay the actual cost of fuel, no more and no less. Fuel costs (like those at the gas pump) can change dramatically based on world, economic, and other market events. When fuel costs change in the market, they affect overall electricity costs. Fuel costs are recovered through a regulatory process called the Fuel Adjustment Mechanism (FAM). We apply to the Nova Scotia Energy Board, who audits fuel spending and issues a decision on customer cost recovery.

How have changing weather trends affected outages and restoration?

Nova Scotia is experiencing more frequent severe storms, higher wind speeds, and increased weather volatility. The province now has significantly more high-wind hours than a decade ago. These conditions increase stress on the system and affect outages and restoration efforts. Nova Scotia experienced 99 hours of wind with gusts exceeding 80 km/h in 2024.
 

How much is being invested in reliability and what is the impact?

Nova Scotia Power is investing more than $1.3 billion over five years in reliability improvements. Total investment in reliability will reach a 20% increase by 2030 when compared to 2023. This supports tree trimming near power lines, replacing poles and wires with stronger, more durable equipment, upgrading substations and equipment, and launching new grid technology to identify outages and restore power faster. With the investments made through the five-year reliability plan we are on track to achieve our Performance Standards for reliability as set out by the Energy Board by 2029.

What are the real facts on Nova Scotia Power’s reliability performance over the past 5 years?

Over the past five years, our reliability performance has improved as reflected in both SAIDI (average outage duration) and SAIFI (average outage frequency) results. With our Five-Year Reliability Plan we have significantly increased investment in vegetation management, targeted infrastructure renewal, and grid modernization. Customers are experiencing fewer outages, and, on average, shorter restoration times compared to earlier in the five-year period. While severe weather continues to influence year-to-year results, recent performance outside of major storms demonstrates measurable progress and reflects the positive impact of our sustained focus on proactive maintenance, system resilience, and operational improvements.

How is reliability measured and how does Nova Scotia compare to similar regions?

Reliability is measured using industry-standard metrics that track how often outages occur and how long they last. One key is metric System Average Interruption Frequency Index (SAIFI), measures the average frequency of outages, while another, System Average Disruption Index (SAIDI), measures the average duration or outages. We use these figures to help determine how and where we invest to improve reliability. Our 5-Year Reliability Plan includes targeted investments aimed at improving both the frequency and duration of outages for our customers.

We are held accountable through the performance standards which tie directly to system reliability. We report on all performance standards annually, and the Nova Scotia Energy Board assesses the results and delivers findings.

More information on our performance standards >
 

What is Nova Scotia Power’s total economic impact in the province?

Nova Scotia Power employs and supports 7,100 indirect and direct jobs in the province contributing $1 billion to provincial GDP and has an annual capital investment of about $2.4 billion.