N.S. regulator approves hikes to residential water rates for 5 utilities

Five water utilities in Nova Scotia have received approval from the provincial regulator to increase residential rates so far in 2024, something mayors attribute to increased costs of operations and upgrades. 

The rates, approved by the Nova Scotia Utility and Review Board, are in effect in the towns of Digby, Pictou and Antigonish, as well as the village of Canning and Richmond County.

In Digby, an 11.1 per cent water rate increase came into effect for the average residential customer on Aug. 1. The cost of water will increase by another 9.9 per cent on April 1, 2025, and 7.8 per cent the following year.  

Prior to the increase, Digby Mayor Ben Cleveland said the cost of town water was ranked 43rd out of the 46 water utilities in the province. 

"With these increases, we'll still be one of the lowest in the province. But it's just basically to cover any deficits or any new regulations put down on us," he said. "It will be getting tougher and tougher in the future." 

'Costs a lot of money'

Cleveland said more financial assistance from the provincial and federal governments could reduce water rate increases. For example, he said a waterline project is forecast to cost about $1 million, including the cost of wastewater and streets and sidewalk infrastructure. 

"That's half a kilometre of pipe. So you can see it costs a lot of money to run utilities like this," Cleveland said. 

Town of Pictou Mayor Jim Ryan said the costs of materials and labour are not the only contributing factors to the rising water cost for residents. He said the town has taken an "aggressive approach" to improving infrastructure particularly to mitigate climate change. 

"It's stormwater separation, which in itself doesn't have anything to do with our drinking water, but in essence, when we're doing those projects, when we're digging up streets, [it] gives us an opportunity to replace some of the old pipes and the old infrastructure as well." 

Debt incurred 

A 12.8 per cent increase for residential customers went into effect on July 1 and will be followed by an 8.2 per cent increase on April 1, 2025, and a 0.6 per cent increase the following year.

"That is because of some of the debt that we've incurred," Ryan said. "We front-loaded that so that we can pay off some of that debt and keep our debt ratio in a good spot so that future work can be done." 

Pictou residents previously faced water rate increases in 2019. 

Other increases approved this year by the regulator include:

• A 12 per cent increase on April 1 in the town of Antigonish. A 4.9 per cent increase is expected next year.
   
• A 16.6 per cent increase on July 1 in Richmond County. Increases of 13.9 per cent and 8.5 per cent are expected in the following years. 
   
• A 7.2 per cent increase on April 1 in the village of Canning. Increases of 6.3 per cent and 5.6 per cent are expected in the following years. 

Proposed increases

Residential customers in the West Hants Regional Municipality could also see an increase as part of the amalgamation of the former West Hants and Windsor water utilities.

A 43 per cent increase is proposed for residential customers in Windsor, while a 16.6 per cent increase is proposed for customers outside the former town boundaries.