The Mahone Bay Electrical Utility is trying to raise its electricity rates by more than 34 per cent.
If the Nova Scotia Utility and Review Board (NSUARB) approves the rate increase, it will be the first in nearly 15 years.
“The Mahone Bay Electrical Utility cannot maintain its financial health and provide reliable service without adjusting rates to reflect the new reality of high market energy costs,” the town wrote in a news release Wednesday.
Mahone Bay is one of six towns in the province that maintains its own electric utility, instead of using Nova Scotia Power.
The municipality wholly owns the electrical utility, which serves the town and a portion of the neighbouring community of Maders Cove. Sixty per cent of its electricity comes from NB Power, while 40 per cent comes from a wind farm in Ellershouse it owns with Berwick and Antigonish.
The town says its utility rates have been comparably low for many years. But, with an increase in global energy prices, the town says it has to apply for the increase.
“These next several years will be difficult as we remain exposed to volatile market prices,” the news release said.
The town says the increase is also making up for postponed investments in the utility’s distribution system and upgrades needed for infrastructure.
Town staff will look into a way to help ratepayers experiencing financial hardship, according to the release.
Mahone Bay Electrical Utility’s request comes as Nova Scotia Power seeks a rate increase of its own.
Nova Scotia Power is currently before the NSUARB, asking for a general rate increase of nearly 14 per cent over the next two years.
It says the increase is needed to harden its infrastructure and transition off coal-fired energy generation.
The Nova Scotia government, however, has put forth legislation to limit the increase to 1.8 per cent over the next two years.
