With files from releases:
Halifax Water’s attempt to significantly raise water and wastewater rates has been partially curtailed by the Nova Scotia Regulatory and Appeals Board, which approved the utility’s application but ordered changes that will reduce the increases originally proposed.
Halifax Water had asked for two major rate hikes in early 2026: a 15.8 per cent increase effective January 1, followed by a further 17.1 per cent increase on April 1. Combined, the proposal would have raised rates by about 35.6 per cent over just three months.
Regulator orders changes to reduce impact
In its decision released Tuesday, the board ruled the proposed increases were sudden and significant and directed Halifax Water to revise its revenue requirements. Several cost items were denied or adjusted, changes that are expected to lower the final rate hikes.
“The NSRAB approved Halifax Water’s application but found that adjustments must be made to the revenue requirements, which will result in a reduction to the overall rate increases initially proposed,” Halifax Water said in a media release.
One of the most consequential rulings involved Halifax Water’s request to recover costs tied to eliminating its accumulated deficit. The board rejected that request, a decision that on its own would reduce the proposed April increase from 17.1 per cent to roughly seven per cent.
Halifax Water cites rising costs and aging infrastructure
Halifax Water said its application was driven by inflation, higher interest rates, aging infrastructure, depleted reserves, and depreciation costs. The proposed increase would have been the first since April 2023.
“We are reviewing the impact of today’s decision and remain committed to providing reliable service to our customers and the environment,” said general manager Kenda MacKenzie. “Our team works hard to provide reliable water, wastewater and stormwater service while controlling costs.”
Mayor welcomes decision, calls for audits
Halifax Mayor Andy Fillmore welcomed the ruling, saying he had warned for months that the proposed increases would amount to rate shock during an affordability crisis.
“For many months, I have been expressing my concern that Halifax Water’s rate increase proposal amounts to rate shock which would put financial burden on residents,” Fillmore said. “Today, the Nova Scotia Regulatory and Appeals Board agreed.”
Fillmore said the board found Halifax Water had overestimated some costs and paid insufficient attention to its fiscal health. He has asked both the municipal and provincial auditors general to consider reviews of Halifax Water’s governance and financial management.
Final rates still pending
The exact size of the approved rate increases will not be known until Halifax Water submits a revised compliance filing to the board by December 23. The regulator will confirm the final rates after reviewing that submission.
