Nova Scotia Government Clears Path for Energy Board to Review Power Utility's Securitization Plan
New regulations allow the Nova Scotia Energy Board to hold hearings on Nova Scotia Power's securitization application, which the utility says could save customers $265 million over 30 years. The proposal covers $1 billion in eligible costs and would add a rider to power bills starting next year.
The Nova Scotia government has introduced new regulations under the Public Utilities Act, granting the Nova Scotia Energy Board the authority to hold hearings on a securitization application filed by Nova Scotia Power. 
In a 430-page application submitted to the energy board, the utility stated that the securitization strategy could save customers approximately $265 million over a 30-year repayment period. The proposal covers $1 billion in eligible costs, which is $300 million more than the amount discussed during earlier rate hearings. Eligible costs include five coal plants scheduled to be retired in 2030, fuel used for electricity generation, and expenses related to the Nova Scotia Independent Energy System Operator.
Deputy Energy Minister Stephen MacDonald said the government wants an additional examination of the application to ensure it is in the best interest of Nova Scotians. This regulatory step represents a shift from Premier Tim Houston's position in January, when he questioned the viability of the securitization plan and expressed difficulty believing that accounting methods could save ratepayers money. At that time, Houston also raised major concerns about Nova Scotia Power's $700 million valuation of the coal plants. As of Friday, however, the government is not questioning those valuations.
If the energy board approves the application, debt repayment will begin next year through a separate line item on power bills known as a rider. The rider is estimated at 2.9 per cent for residential customers in 2027, with an average of 3.3 per cent across all customer groups. Combined with a previously approved 3.9 per cent rate increase, the total residential rate increase for 2027 would reach 6.8 per cent if the securitization rider is implemented. 
The government's move drew criticism from opposition leaders. NDP Leader Claudia Chender characterized the plan as a bailout for costs the utility should absorb. Liberal Leader Iain Rankin argued that the delay in advancing the proposal prevented earlier savings for customers.