Halifax Water has withdrawn its proposal to raise rates for residential customers by around 35% in 2026. Instead, the utility has submitted a new request to the Nova Scotia Regulatory and Appeals Board for increases that would result in a 12.1% hike in January and an additional 5.5% increase in April for the average residential bill.
The need for rate hikes was attributed to financial challenges stemming from deferred rate adjustments during the pandemic, inflation, population growth, and aging infrastructure. Halifax Water’s General Manager, Kenda MacKenzie, explained that the aim was to eliminate the deficit and improve the utility’s financial health, a plan that was rejected by the regulator.
While the regulator criticized the initial proposed hikes as “rate shock,” MacKenzie emphasized that Halifax Water faces similar financial pressures as other industries and utilities in the province, necessitating the need to pass some of the burden onto consumers.
Responding to the regulator’s feedback, Halifax Water announced adjustments to remove the $27.2 million needed to erase the deficit from rates. Additionally, over $19 million in extra costs were eliminated by modifying debt and depreciation levels.
Despite these changes, Halifax Mayor Andy Fillmore expressed dissatisfaction with the proposed rate increases, blaming them on governance failures and financial mismanagement. Fillmore raised concerns about potentially shifting the utility’s financial shortfalls onto Halifax Regional Municipality taxpayers without a thorough independent audit.
In response, MacKenzie stated that Halifax Water is willing to participate in an independent audit process if required. Meanwhile, Rental Housing Providers Nova Scotia urged the regulator to reject Halifax Water’s compliance filing and suggested spreading revenue requirements over a five-year period to limit annual water rate increases to no more than 5%.
The ongoing debate over water rate adjustments highlights the challenges faced by Halifax Water and the efforts being made to find a balanced solution that benefits both the utility and its customers.