Federal $500M bailout for Muskrat Falls power delays to keep N.S. rate hikes in check

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Federal $500M bailout for Muskrat Falls power delays to keep N.S. rate hikes in check
Nova ScotiaNova Scotia PowerJonathan Wilkinson
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HALIFAX — Ottawa is negotiating a $500-million bailout for Nova Scotia's privately owned electric utility, saying the money will be used to prevent a big...

HALIFAX — Ottawa is negotiating a $500-million bailout for Nova Scotia 's privately owned electric utility, saying the money will be used to prevent a big spike in electricity rates.

"The action we are announcing today is anticipated to reduce the annual increase very, very significantly." As a result, Nova Scotia homeowners and businesses didn't receive all of the expected hydro power they expected, and Nova Scotia Power was forced to purchase more expensive and polluting fuels to boost production from their existing generating stations.

Despite the steady flow of money to Nova Scotia in recent weeks, on the weekend Premier Tim Houston repeated his government's calls for Ottawa to foot the entire bill to protect the Chignecto Isthmus — a vital strip of land connecting the province to New Brunswick — from climate-change related storms.

Sean Fraser, the federal minister of infrastructure, said the roughly $325 million Ottawa has approved for improving the dikes that protect the Isthmus is the largest amount approved to date under the federal Disaster and Mitigation Adaptation Fund.

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