Halifax Water applies for monthly rate increase

Halifax Water has applied for a rate increase that could add around $5 to the average customer's monthly bill by 2023. 

The general rate application was sent to the Nova Scotia Utility and Review Board on Friday. It requests a 3.6% increase to average residential bills split into hikes in September 2022 and April 2023.

"Now is the time for the increase because the utility has waited as long as they can without incurring too much financial risk, and we're required to recover costs and operate on a break-even basis," said Cathie O'Toole, the utility's CEO and general manager. 

In a statement, the utility said the request is driven by the increased cost of aging infrastructure, environmental compliance regulations and growth within the municipality.

Halifax Water provides drinking water as well as wastewater and stormwater services. The application requests increased charges for all three.

Most recently, it raised water rates in 2016, and raised stormwater rates in 2017. But O'Toole said the utility, which is owned by the municipality, is operating at a deficit. 

"We're concerned that those losses are going to continue to increase," she said. "And if we don't start taking some steps now to get back to balance and get back to a better financial position, then we're just going to be causing a larger rate increases in the future."

She said the utility's yearly operating cost is around $166 million. Most of the new revenue will go toward fixing old infrastructure, like upgrading two water treatment plants. 

People are 'feeling the crunch'

Anti-poverty advocates worry that another rate increase will add to already record inflation.

"In addition to the increasing housing costs ... gas prices have also gone up, hitting a record high over the past few days, food prices are certainly increasing, and people throughout our community are feeling the crunch," said Amgad Zaky, director of donor relations at the Parker Street Food and Furniture Bank. 

Zaky said there has been a significant increase in families needing help in the last year. 

"Many of our clients are really in very difficult situations, and it sounds like any proposed rate increases will do much harm to them unless there is also an equivalent increase in their income rates, be it from employment income or ... from income assistance."

The application calls for a regulatory review process.

Zaky said he encourages people to voice their concerns about the proposed rate increase.

O'Toole said the approximate $5 increase by 2023 may not be set in stone.

"Our past history has shown when you file for a rate application and you go through the hearing process, adjustments will be made ... as different ideas arise or different questions come forward."