Emera's Nova Scotia Power settles on rate application

Executive Summary

• Emera Inc. subsidiary Nova Scotia Power has reached a settlement with customer representatives regarding an upcoming General Rate Application (GRA) to be filed with the Nova Scotia Energy Board (NSEB).
• The settlement supports the first two years of a five-year reliability plan, which outlines over $1.3 billion in investments for storm hardening, vegetation management, and grid modernization.
• If approved, average rates will increase by 2.1% in 2026 and 2027, with residential rates increasing by approximately 4.1% in both years.

Key Details

• Settlement Status: Reached after six months of discussion with customer representatives including the Consumer Advocate, Small Business Advocate, Industrial Group, and various municipal utilities.
• Filing Timeline: The GRA and related settlement are expected to be filed with the NSEB later in September.
• Investment Scope: The GRA supports the first two years of a five-year reliability plan filed in December 2024, covering critical infrastructure investments.
• Rate Increases:
  • Overall average rates: +2.1% in 2026 and +2.1% in 2027 (effective Jan. 1 of each year).
  • Residential rates: ~4.1% increase in both 2026 and 2027.
• Cost Savings & Securitization:
  • Rates include up to $90 million in savings over the next two years (up to $225 million over 30 years).
  • Savings derived from a proposed securitization of more than $700 million of thermal assets planned for retirement by 2030 to meet environmental policies.
  • Securitization requires a separate NSEB approval process.
• Financial Metrics:
  • Return-on-Equity (ROE) target: 9%.
  • Maximum equity thickness: 40%.
  • These terms aim to ensure compliance with key credit metrics to support an investment-grade credit rating.
• Regulatory Body: Nova Scotia Energy Board (NSEB) will evaluate the GRA and make final determinations on rates.

Notable Quotes

• "The settlement reflects a commitment to finding a balanced solution from a diverse group of customer representatives... The settlement works to balance the utility's ongoing need to invest in reliability with the very real cost pressures on customers."