Nova Scotia Power Files Plan to Lower Financing Costs and Help Reduce Future Rate Increases
October 15, 2026
Nova Scotia Power has filed an application with the Nova Scotia Energy Board for a new way to finance costs tied to the province’s changing electricity system. If approved, the plan would reduce pressure on customer rates by lowering borrowing costs and spreading repayment over a 30-year period.
Originally proposed and supported as part of Nova Scotia Power’s most recent General Rate Application, the proposed plan would allow up to $1 billion in eligible costs to be financed using a lower-cost method called securitization. Securitization is a proven financial tool that has been used in other jurisdictions to lower costs for customers by enabling lower interest rates and longer repayment terms.
The filing follows a framework developed by the Province of Nova Scotia to help manage costs associated with the energy transition for the benefit of customers. Eligible costs include the remaining value of certain coal-related assets due to be retired as part of the energy transition, fuel used to generate electricity, costs to establish the Nova Scotia Independent Energy System Operator, and other deferred expenses.
These existing expenses are already part of what it costs to operate and transition the electricity system. The proposed securitization approach changes how those costs are financed, allowing for lower-cost borrowing to be accessed and used to help reduce the impact on customers as the system changes. Without this plan, these costs would be funded at higher interest rates. As a result, the proposed framework is expected to save customers approximately $265 million over the full 30-year repayment period.
If the application is approved, the lower-cost debt would be repaid through a separate line item on power bills, called a rider, beginning in 2027. For residential customers, the rider would add 2.9% in 2027. Combined with the previously approved 3.9% rate increase for residential customers for 2027, the total increase would be 6.8% for residential customers. Across all customer groups, the new rider would average 3.3%.
The Nova Scotia Energy Board will review the application and determine whether the proposed financing plan is in the best interest of customers.
