06:57 AM EDT, 09/02/2025 (MT Newswires) -- Nova Scotia Power, a wholly owned subsidiary of Emera Inc. ( EMA ) , announced Tuesday it has reached a settlement with customer representatives for an upcoming General Rate Application (GRA).

A statement noted the settlement reflects more than six months of discussion, consultation and information sharing. The utility expects to file the GRA and related settlement with the Nova Scotia Energy Board (NSEB) later in September, outlining the revenue required to support the investments needed to meet the needs of Nova Scotians today and in the future.

Tuesday's statement noted that Nova Scotia Power's existing five-year Reliability plan, filed with the NSEB in December 2024, outlines more than $1.3 billion in required investments. This GRA and settlement supports the first two years of investment to deliver on this plan.

If approved by the NSEB, overall average rates will increase across all customer classes by 2.1% in 2026 and 2.1% in 2027 with rates to be effective January 1 of each year. Residential rates are expected to increase by approximately 4.1% in both 2026 and 2027.

Tuesday's statement noted the Nova Scotia Energy Board will make a final determination on rates for each customer group. These rates include the benefit of up to $90 million in savings realized over the next two years (up to $225 million over the next 30 years) through a proposed securitization of more than $700 million of thermal assets planned to be retired by 2030 in order to meet federal and provincial environmental policies. Nova Scotia Power is working with stakeholders including the provincial government on this proposed securitization, which will require a separate NSEB approval process. The terms of this settlement, which include the continuation of the existing Return on Equity (ROE) target of 9% and maximum equity thickness of 40%, are expected to allow Nova Scotia Power to recover its costs and generate earnings within this ROE range to help ensure it remains compliant with key credit metrics to support its investment grade credit rating.