Nova Scotia Premier Tim Houston is taking his public condemnation of Nova Scotia Power’s proposed rate increases one step further, saying his government will intervene in the regulatory review of the utility’s proposal.
He made the comments hours before Nova Scotia Power made its formal application with the Nova Scotia Energy Board. The utility applied to raise the standard residential rate 3.9 per cent for each of the next two years — a slight decrease from the 4.1 per cent increases it had announced earlier this month.
Houston also suggested that if his vision for establishing an offshore wind industry in Nova Scotia is realized, it could bring stability to power rates following years of repeated jumps.
“I think we can adjust the [energy] mix and offer some hope to Nova Scotians that in the medium to long term, rates can stabilize and ultimately come down,” he told reporters following a cabinet meeting Thursday.
Houston acknowledged that offshore wind is more expensive to produce than many other forms of energy, but he said he expects production costs to come down over time.
Based on the province’s own estimates, offshore wind would cost two to three times more to produce than the rates that Nova Scotia Power has agreed to pay upcoming onshore wind farms.
Houston did not elaborate on the case his government would make before the energy board against Nova Scotia Power’s proposal.
In his initial response earlier this month, Houston called the utility “out of touch,” and said rate hikes would not be appropriate at this time because of the recent breach of personal information belonging to hundreds of thousands of Nova Scotia Power customers.
The Houston government passed legislation in 2022 to cap power rates, but it was ultimately ineffective. The regulatory board approved general rate increases that surpassed the legislated ceiling of 1.8 per cent over two years. Other rate increases related to fuel price adjustments, which were not part of the legislation, also went ahead.
Since 2022, the standard residential power rate has risen from $0.16215 per kilowatt hour to $0.18561 per kilowatt hour, or about 14.5 per cent.
Houston would not comment Thursday on whether his government is considering repeating any similar action.
“We’re intervening with the [board] on the process. That’s the first step,” he said.
Beyond that, he said he did not want to speculate.
NDP Leader Claudia Chender said the province should be temporarily subsidizing power bills to make energy more affordable, immediately.
“The premier today talked about rate stability as a far-off goal of his government. Everyday Nova Scotians need to know that they can pay to heat their homes this winter. And many don’t,” Chender told reporters.
Her party said in a news release Thursday it would be tabling legislation at the fall sitting, which begins next week, that would provide a 10 per cent rebate on power bills.
Chender said the one-year relief measure would cost the government $150 million.
To address power rates in the long term, Chender called for unspecified regulatory change, new forms of energy and grid improvements.
Interim Liberal Leader Derek Mombourquette said Nova Scotians need “clear and constant access to efficiency programs” to help reduce power bills, and a more competitive energy market that includes independent producers, not just Nova Scotia Power.
