FREDERICTON -- The New Brunswick government is putting its Crown-owned power utility back together, 10 years after a previous Progressive Conservative government split NB Power into seven separate companies.
Energy Minister Craig Leonard has introduced a new Electricity Act, which sets out new rules for the operation of NB Power and annual power rate increases.
Under the legislation, the NB Power group of companies would be integrated into one main company plus a subsidiary that would handle energy imports and exports.
Leonard said the restructuring would save up to $12 million each year.
"All of this work is designed to allow NB Power to reduce costs and create efficiencies, still be well-regulated and provide low and stable rates to consumers," Leonard said Tuesday.
"There was overlap in the utility with the multiple companies and this will streamline things."
NB Power would be required to defend its rates before the Energy and Utilities Board every year starting in 2015. As it stands now, NB Power can increase rates up to three per cent without a hearing before the board.
The utility would be allowed to increase rates by up to two per cent this October and in October 2014 while NB Power and the board address other regulatory matters that would result from the restructuring.
The provincial government would also no longer have the authority to override a rate decision made by the board.
A three-year freeze on residential power rates comes to an end on Sept. 30.
"After the three-year rate freeze we are pleased that NB Power is able to stay on track to meet its debt reduction target," Leonard said.
NB Power has committed to reducing its $4.6 billion debt by $1 billion over the next 10 years.
The new act would also require any vacancies on the NB Power Board of Directors or the job of president to be filled through recruitment using a merit-based process rather than government appointments.
