Rate hike necessary to get back to cost-neutral operations: Halifax Water CEO

Kenda MacKenzie, CEO of Halifax Water, discusses the new mandatory conservation measures in Dartmouth.

Kenda MacKenzie, the CEO and general manager of Halifax Water, said a proposed rate hike is necessary for the utility to handle its deficits and return to cost-neutral operations.

MacKenzie said Halifax Water operated at a deficit from 2020 to 2022, but they were able to use surpluses to offset the costs for customers. As they head into 2026, they no longer have those surpluses and she says they need to raise the rates.

“We were mindful that the community was going through COVID and recovering from COVID, so we didn’t raise the rates (in 2020 and 2022),” MacKenzie told CTV News Atlantic’s Todd Battis on Wednesday. “We have significant deficits. We have to try and make efforts to get back to a cost-neutral position, which is why we’re seeing the proposed rate increase.”

Halifax Water issued the proposed increase in May, which, if approved by the Nova Scotia Regulatory and Appeals Board, would raise the average residential bills by 16.2 per cent on Jan. 1, 2026, and then by 17.6 per cent by April 2026.

The utility previously said in real terms this would increase the average residential bill by $148.01 in 2025-2026, and then by $186.56 in 2026-2027.

MacKenzie said Halifax Water had a $17-million deficit from last year and it is projecting a $34-million deficit for 2026-2027.

The proposed rate increase has sparked the Stop the Water Hike campaign, which urges residents to send a message to the municipality and the Appeals Board.

Oland Brewery has suggested it could move away from Halifax if the rate hike is implemented.

“As the federal and provincial governments work to remove internal trade barriers, companies like ours may move production to jurisdictions where it is more affordable,” it said in a letter.

MacKenzie said Halifax Water does take affordability into account when proposing rate hikes.

“We do take seriously the affordability concerns,” she said. “We make every effort to keep the rates as low as we can.”

The Appeals Board will hear the rate hike application on Monday.

-With files from CTV News Atlantic’s Melanie Price

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