Ottawa Finalizes $500M Bailout for Nova Scotia Power to Stabilize Rates

The federal loan guarantee aims to mitigate rate hikes caused by Muskrat Falls electricity delivery delays.

The $500-million federal loan guarantee will help Nova Scotia Power avoid significant rate increases for customers.
The bailout was confirmed by Emera, Nova Scotia Power's parent company, following an initial announcement by Natural Resources Minister Jonathan Wilkinson on September 16.
Without the loan, average power rates could have risen by up to 20% over several years; the loan is expected to keep increases around the rate of inflation.
The loan guarantee will be spread over 28 years, reducing overall financing costs and helping stabilize Nova Scotia Power's credit rating.
Muskrat Falls hydroelectric project has faced production and software issues, forcing Nova Scotia Power to purchase more expensive fuels to meet demand.