Queens water rate ask still ‘unreasonable, unjust and unprecedented’ despite reworked numbers

The Region of Queens is asking for a lower immediate rise in water rates. (Daan Mooij via Unsplash)

The Region of Queens is no longer asking for an immediate 106 per cent increase in water rates.

But customers will still have to pay about 115 per cent more over three years if the municipality’s application to the Nova Scotia Regulatory and Appeals Board is successful.

In documents filed with the board on Nov. 7, the region is now asking for a 43 per cent increase in the first year for the 1,200 water utility customers in Liverpool and Brooklyn. The region has diverted about $1.6 million in budget reserves to blunt the first-year increase and spread it over a longer period.

“The utility did not get in its present state overnight and it cannot be restored to its proper efficient and effective state overnight, but the process has started, and it needs a sustainable rate structure to accomplish this,” Willa Thorpe, the region’s chief administrative officer, wrote in the revised rate hike request. 

“If the current underfunding is not addressed now it just pushes the problem forward and adds unnecessary debt payments for future customers.”

• Read the region’s submission to the Nova Scotia Regulatory and Appeals Board
• Read the Queens Community Health Board’s submission to the regulatory board

Before the region filed its revised rate hike request, the Queens Community Health Board filed a comprehensive objection to the planned increases, calling them “unreasonable, unjust and unprecedented”. 

The board is the only registered intervenor in the hearing, though it has letters of support from the Queens County Food Bank, Liverpool Curling Club, Queens Transit and the Queens Care Society.

Board chair Tara Druzina told QCCR this week that many people can’t afford to pay up to an extra $461 a year for water services.

“I think the perspective of the community health board is the shock of the increase that is coming forward,” she said.

“The municipality does need to run a balanced utility and we’re aware of that. It’s just that the 115ish per cent over three years, while there’s such a large percentage of water loss, is this concerning part we have, particularly for our vulnerable residents.”

The board will hold a public hearing on the region’s water rate request on Wed., Nov. 19 at 10:30 a.m. in council chambers at the region’s offices on White Point Road.

Druzina said it’s important for residents to have their say at the hearing.

“The board members, like at a council meeting, need to know the perspective of the community impacted.”

Anybody can speak at the hearing, but you must notify the board by Fri., Nov. 14, by email at board@novascotia.ca, by phone at 902-424-1333 or 1-844-809-0010. You can also send written comments to the board by email or by sending a letter to the Clerk of the Board at P.O. Box 1692, Unit “M”, Halifax, NS B3J 3S3 by Nov. 14.

The region says it needs to raise rates by more than 100 per cent to deal with an $800,000 deficit.

The utility has operated at a loss for five consecutive years, since 2020. It’s also been struggling to keep a lid on significant leaks in the system, losing up to 69 per cent of its water each year through faulty water mains and other unrepaired damage. In a 2024 study commissioned by the region, consultants said that leakage rate placed it in the “worst” category compared to other utilities.

“The people of Queens County face a choice made by others: pay dramatically more for a service that wastes two-thirds of its water or fight for regulatory protection,” the health board wrote in its submission.

“The (regulatory) board has both the authority and the obligation to protect ratepayers from this injustice while ensuring utility viability. We recognize the challenges faced by small rural utilities. However, four years of declining performance despite board direction and significant spending demonstrates problems beyond normal operational difficulties. We are not asking the board to let the utility fail. We are asking the board to protect the people of Queens County from bearing the full cost of that failure.”

The community health board points to the utility buying used water meters from Halifax that were already past their prime, staffing shortages, improper oversight and the ongoing system leaks.

The health board wants the provincial regulator to approve a 15 to 20 per cent increase and impose mandatory targets to reduce system leaks: 10 per cent reductions a year by 2028, with a long-term reduction goal to the industry standard of 30 per cent.

In a letter to the regulatory board after the region’s revised rate request, Druzina says the lower proposed hike in the first year is better, but “without binding performance accountability measures, however, it does not address the operational failures that created this crisis or prevent recurrence.”

And she says the region’s recently approved $200 utility assistance rebate for those on low incomes is “insufficient and unsustainable”.

In a county with a 31.5 per cent child poverty rate and where more than 30 per cent of residents are over 65, Druzina says even with the rebate, people will struggle to cope with a 43 per cent immediate increase.

Recent decisions by the regulatory board have approved water rate increases of up to 17.8 per cent in Sherbrooke on Nova Scotia’s Eastern Shore and 7.2 per cent over two years for Halifax.

The Queens proposal “represents the largest rate increase request in documented Nova Scotia regulatory history”, Druzina writes.

In addition to an interim hike of no more than 15 to 20 per cent, the health board wants future increases tied to reducing the water wasted through leaks in the system. It also wants the provincial regulator to order an independent system audit and quarterly public reporting, and to require a performance-based rate plan with accountability measures.

Email: rickconradqccr@gmail.com

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