Halifax Water As a municipally-owned utility, operating on a cost-of-delivery basis. It does not have profit built into its rates. The funds collected are the funds required for operations, capital investment and debt financing to provide quality service for our customers.
On September 29, Halifax Water has submitted a General Rate Application (GRA) to the Nova Scotia Regulatory and Appeals Board (NSRAB). As part of the application, the municipally owned utility is seeking approval for a 8.4 per cent increase in average residential bills on April 1, 2027 and 8.2 per cent increase on April 1, 2028.
The Hearing Order for Halifax Water’s General Rate Application is now available. The document includes information on the hearing process, key dates, and opportunities for public participation. Click here to view.
Halifax Water is facing significant financial pressures driven by inflation, rising interest rates, aging infrastructure, depleted reserve funds, and increasing depreciation costs. The proposed rate adjustments are intended to help address these challenges while supporting ongoing investments in the water, wastewater, and stormwater systems that serve communities throughout the Halifax Regional Municipality.
Background
The proposed rate increase is being driven by several key cost pressures. A significant factor is the rising cost of debt principal and interest needed to support Halifax Water’s capital program, including the use of short-term construction financing for the first time. Depreciation costs are also increasing as new infrastructure assets are brought into service, adding approximately $8.6 million to $10.8 million annually. In addition, labour costs continue to rise due to negotiated union wage increases and the addition of new positions to support operations and growth, partially offset by a vacancy factor. Other operating expenses, including treatment chemicals, contract services, supplies, traffic control, road repairs, vehicle costs, and software, are also increasing.
Together, these investments support the ongoing renewal, maintenance, and operation of critical water, wastewater, and stormwater infrastructure while ensuring reliable service for customers.
Customer Impact
Halifax Water recognizes that many households and businesses continue to face financial pressures and rising costs in their daily lives. We understand that any increase in utility rates can be challenging, and we carefully consider the impact on customers when planning for the future.
However, rising operating costs, increasing infrastructure needs, and significant investments required to maintain safe and reliable services make a rate adjustment necessary. These investments support the renewal of aging infrastructure, help meet regulatory requirements, and ensure the continued delivery of high-quality water, wastewater, and stormwater services that customers depend on every day.
The proposed increase is needed to maintain Halifax Water’s long-term financial sustainability, address growing cost pressures, and ensure we can continue providing the reliable services our communities expect now and in the future.
Proposed Deficit-Elimination Rider
The application also proposes a temporary deficit-elimination rate rider for water and stormwater customers. For the average residential customer, the rider represents approximately 0.7 percentage points of the proposed 8.4 per cent increase in 2027/28, or about $0.65 per month. In 2028/29, it represents 0.7 percentage points of the proposed 8.2 per cent increase, or an additional $1.44 per month. The rider would appear as a separate charge on customer bills to recover the approved accumulated deficits over no more than five years. It would be reviewed as part of Halifax Water’s next General Rate Application and removed once the approved deficit balance for each service has been recovered.
Affordability
This request was not made lightly; Halifax Water appreciates that this will impact customers that are already feeling the pinch; however, the utility is at a critical point that requires the utility to submit a rate application to avoid further operating deficits
Halifax Water is committed to meeting the demands of customers by understanding how it can better serve them. That is why the utility is focused on providing customers with the tools and information they need to manage their accounts more effectively and efficiently.
Halifax Water is continuously focused on providing value to customers and recognizes There is a cost to assuring quality, but for some, there is a financial concern. This is why Halifax Water conducts an affordability study on a regular basis to look at rates and benchmarks against other cities across Canada. Halifax Water continues to have some of the lowest rates in the country.
We appreciate that increased costs for services are unwelcome, but for those that struggle with affordability, we have designed programs to help them. These include:
Our H2O Program:
- The H2O (Help to Others) Fund is available to Halifax Water residential customers who are having a hard time making their bill payments. Approved applicants will receive assistance once in a 24-month period to a maximum of $275.00.
- Additionally, Halifax Water has lowered the interest rate charged to customers on their outstanding accounts from 19% to 14%.
Independent Regulatory Review
Halifax Water does not set its own rates. The utility's application is subject to an independent review by the Nova Scotia Regulatory and Appeals Board (NSRAB), which serves as Halifax Water's economic regulator. The Board reviews the evidence and determines whether the proposed rates are reasonable and necessary before making a decision.
Customers and interested parties have an opportunity to participate in the regulatory process and learn more about the application before a final decision is made.