Houston Government Misses Opportunity to Stop Nova Scotia Power Profit Grab

In the midst of an affordability crisis, the Houston government has done nothing to stop a proposal from Nova Scotia Power (NSPI) that would allow them to pocket millions of dollars at the expense of Nova Scotians.

Historically, any overearnings from NSPI were returned in full to Nova Scotians, but now the utility is requesting to keep 50 per cent of excess profits – a figure that totalled $131 million between 2009 and 2020. NSPI is proposing several other avenues to drive up their profits, including an increase on their rate of return and return on equity. With this combination of requests, the utility is positioned to bring in an unprecedented amount of funds.

“The Houston government is letting Nova Scotia Power get away with an intolerable profit grab while people are struggling to afford basic necessities,” says Liberal Leader Iain Rankin. “Preventing this rate hike should be top of mind for this government.”

An internal government memo received by the Liberal Party shows the Houston government was aware nearly two months prior to the spring session that over half of the utility’s rate application was related to increasing its profits. After teasing legislation to stop the rate hike throughout the session, the Houston government never fulfilled the commitment.

“The Houston government missed an opportunity to stop Nova Scotia Power’s rate hike in the spring. Their inaction will cost Nova Scotians more than they can afford in a cost-of-living crisis,” says Rankin.