Halifax Water applies for rate increase, facing ‘significant operating deficits'
Halifax Water has applied for a 16.2 per cent increase in residential bills because it is facing 'significant' operating deficits due to inflation, depleted reserve funds and aging infrastructure.
According to the municipally-owned utility, the application to the Nova Scotia Regulatory and Appeals Board (NSRAB) is asking for a 16.2 per cent increase in average residential bills in 2025/26 and a 17.6 per cent increase in 2026/27.
Halifax Water estimates the average annual bill will increase by $148.01 in 2025/26 and $186.56 in 2026/27.
Operating deficits are projected to be $18.7 million for 2024/25 and $34.1 million for 2025/26, Halifax Water said in a Monday news release.
'We understand that requests for rate increases come at a time when many households are already feeling the pinch of rising costs, but it is unavoidable,' said Kenda MacKenzie, general manager and CEO of Halifax Water, in the release.
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'Operating as a not-for-profit, we require the proposed rates for strategic investments to continue ensuring safe and dependable water services. Without them, we risk long-term financial instability that could jeopardize the quality of services provided to the community.'
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The utility went on to say that it intentionally suppressed rates and tapped into its reserves during the pandemic — which increased their current deficit.
Customers and other interested parties can participate in the regulatory review process.
In January, more than 200,000 residents were affected by a two-day boil water advisory — the second time in about seven months — after a power interruption at the Pockwock treatment facility led to the release of unchlorinated water into the system.
The event led Mayor Andy Fillmore to call for an investigation into what happened.
Halifax Water is currently undertaking 'critical' maintenance work and diverting cubic metres of wastewater into the Halifax harbour and Bedford Basin as part of that project.
That work includes upgrades to their ultraviolet disinfection equipment.
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