Nova Scotia Power customers will see higher electricity rates in both 2026 and 2027, though slightly less than the utility asked for. The Nova Scotia Energy Board announced its decision on matter M12451 on March 25, 2026, approving Nova Scotia Power's general rate application with adjustments. The Board's staff published a two-page Decision in a Nutshell alongside the full 309-page decision.
What the Board decided
The short answer: increases are justified by rising costs, but not every cost the utility proposed.
According to the summary, the Board found rate increases are needed to cover the rising cost of service, more service requests and the cost of operating more renewable resources. It also found that some costs should be reduced or removed. A settlement agreement between NS Power and most customer groups was considered, but the Board said it did not have to approve the agreement unchanged, and it required changes so that final rates are just, reasonable and in the public interest.
The adjustments ordered
The short answer: about $8 million a year in operating cuts, plus several smaller reductions.
The Board ordered:
- a further $8 million reduction in operating, maintenance and general expenses in each of 2026 and 2027, on top of the $9 million in the settlement agreement;
- a reduction in proposed executive compensation in both years;
- denial of about $1 million proposed for a general rate application deferral account;
- a $1.8 million reduction in fuel and purchased power costs;
- a change in how distribution system costs are split, shifting some costs from residential, small general and unmetered customers to other classes;
- denial of a proposed fee for customers who decline an AMI smart meter.
Coal plants, securitization and equity return
The short answer: about $704 million in unrecovered coal-plant investment remains a live issue.
NS Power has not recovered about $704 million invested in coal plants that it is required by law to retire by 2030. The utility proposed to securitize those assets, recovering the cost over a longer period at lower financing costs. Because the necessary legislation had not been brought into force, the Board approved a "securitization deferral" account so the utility can try to recover related costs later.
The Board kept the 9% return on equity, saying it helps protect NS Power's credit rating; expert evidence indicated a downgrade could cost customers at least $25 million a year. On affordability, the Board said it cannot create income-based rates or refuse legitimate cost recovery simply to make rates more affordable. Reliability, performance standards and a cyber incident are being reviewed in separate proceedings.
What happens to customer bills
The short answer: rates rise in 2026, on a date the Board was still to set, and again on January 1, 2027.
The summary says rates for all customer classes will change in 2026 and again on January 1, 2027. NS Power was directed to recalculate rates and file final figures within two weeks, after which the Board would issue an order confirming rates and the 2026 effective date. Readers should check the Board's site for that order; we have not reviewed it for this story.
Analysis: what this means for heating contractors
This section is HeatingNews.ca analysis, not part of the Board's decision.
Nova Scotia's heating mix is split: Statistics Canada's 2023 survey shows 29% of households using electricity and 28% using oil as their primary heating energy, with heat pumps the main system in 25% of homes. That means two price stories are running at once this winter. Electricity is rising by roughly 4% a year, and heating oil prices were 57.8% higher in September than a year earlier.
For a Nova Scotia contractor, the honest message is relative, not absolute: both fuels cost more, but by very different amounts. Homeowners on oil who are considering a heat pump will want a side-by-side running-cost estimate, and that estimate should use current published prices with dates. Our fuel-switching campaigns are designed around that conversation, and our Nova Scotia page tracks which Efficiency Nova Scotia programs were open when we checked.
What to watch next
The Board's confirming order sets the 2026 effective date. For New Brunswick's parallel decision, see our report on NB Power's 4.29% increase, and for all provincial coverage visit the newsroom.
Frequently asked questions
Did the Nova Scotia Energy Board approve Nova Scotia Power's rate increase?
Yes, with adjustments. The Board's March 25, 2026 summary says rate increases are needed, but some costs NS Power wanted to pass on to customers were reduced or eliminated.
How big is the residential increase?
The Board's summary says the residential increase is expected to be slightly lower than NS Power's proposed 3.8% for 2026 and 4.1% for 2027. Final figures were to follow in a Board order after NS Power recalculated its rates.
What return on equity did the Board allow?
The Board kept NS Power's return on equity at 9%. It said expert evidence indicated a credit downgrade could raise customer costs by at least $25 million a year.
Can the Board create income-based electricity rates?
The Board said it has no power under the Public Utilities Act to create income-based rates, a requested Mi'kmaq rate class, or to address specific social issues through rates.