Interveners pile up in Halifax Water rate case

Halifax Water’s proposed rate hikes have sparked significant interest from public and private entities, including Oland Brewery, Halifax Regional Municipality, and Killam Apartment REIT. These stakeholders have joined the regulatory review process to voice their concerns about the proposed rate increases.

The utility is seeking approval for two rate hikes over the next two years, with an average increase of 16.2% this fiscal year and 17.6% next fiscal year for residential customers. Killam Apartment REIT’s chief financial officer, Dale Noseworthy, expressed concern about the proposed rate hike, emphasizing the impact it would have on the company’s budget. Last year, Killam paid $3 million to Halifax Water, representing nine percent of its operating costs.

Oland Brewery, owned by Labatt, also raised objections to the rate increase, citing its negative impact on business. The municipality of Halifax, as the owner of Halifax Water, highlighted the financial implications of the rate application on municipal taxpayers, as it acts as a guarantor for Halifax Water’s debt.

Halifax Water justifies the rate hikes as necessary to address financial shortfalls resulting from deferred rate increases during the pandemic, inflation, population growth, and aging infrastructure. National industry groups support the need for rate increases, citing the importance of investing in water infrastructure to prevent costly repairs and disruptions in the future.

Concerns about affordability have been raised, but subsidies for low-income households and support programs are seen as potential solutions to bridge the gap. Nova Scotia’s minister of opportunities and social development has pledged to monitor the impact of rate increases and introduce new support programs if needed.

Experts emphasize that proper maintenance of water infrastructure is crucial to prevent system failures, which can be far more expensive to address than routine maintenance. Halifax Water is engaging with all levels of government to explore funding opportunities to reduce the burden on customers.

In conclusion, while rate hikes may be challenging for customers, they are seen as necessary to ensure the reliability of water services and avoid costly infrastructure failures. Collaboration between stakeholders and government entities will be essential to address the financial implications of the proposed rate increases and ensure sustainable water management in Halifax.