NB Power files for 8.9 per cent rate hike, government says it's not likely to intervene
NB Power has filed a general rate application with the New Brunswick Energy and Utilities Board - an 8.9 per cent increase.
"We recognize any rate increase is difficult for our customers,” said Lori Clark, the acting president and CEO of NB Power.
“NB Power has taken steps in ensuring the rate increase is as low as it can possibly be while the utility can continue to cover its services."
If approved, the rate will come into effect in April 2023 and will amount to roughly $16 a month, or about $200 a year for average residential customers.
Premier Blaine Higgs and Energy Minister Mike Holland say it's not likely the government will intervene.
"We have to look at the fact that governments have been criticized for meddling and being involved in NB Power's affairs over the years,” Holland said.
"I don't see that as a favourable approach because what has happened in the past where you know if we look back in history where we've put in rate freezes and you know, we've done things that haven't been the wises investment and they would be politically motivated,” said Higgs.
“That impacts the bottom like to rate payers and it affects the bottom line to the utility. So, how do we deal with that? We deal with it by trying to reduce the consumption and trying to go at that hard."
The Enhanced Energy Savings Program, a partnership between NB Power and the Department of Natural Resources and Energy Development, was opened to applicants last week.
"The programs that were recently announced are only going to reach five per cent of the target audience over the next three years. That's nothing," said David Coon, the leader of New Brunswick's Green Party. “Well it's something for those 2,000 people but it's kind of like a lottery."
Coon says the program should be funded up to $150-200 million a year.
He believes NB Power could lower costs by going with renewable energy.
"If we had a utility as we should in the future that is primarily powered by renewable sources of energy,” Coon said.
“Then you're dealing with free sources of energy which are eternal and your costs are all about harnessing that and storing it, rather than paying for fuel and importations."
NB Power described the proposed increase as a break-even budget.
"The 8.9 per cent is what we're applying to the EUB for. In future years, we were looking at what that rate increase needs to be so we do adequately address our debt situation and ensure that the utility is financially sound for the future,” Clark said.
The utility has accrued about $5 billon in debt. To tackle that in the following years, increases could be raised between two and 16 per cent.
"The next two tears on our application you will see there is debt reduction as a primary focus,” Clark said.
“We are focused on meeting debt equity targets of 80/20 by 2027 to prepare for Mactaquac expenditures and other capital expenditures we have in the future."
NB power plans to cut its operating costs by $50 million. That includes reducing its workforce.
CTVNews.ca Top Stories
BREAKING Israel attacks Iran, Reuters sources say; drones reported over Isfahan
Israel has attacked Iran, three people familiar with the matter told Reuters, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Nearly half of China's major cities are sinking, researchers say
Nearly half of China's major cities are suffering 'moderate to severe' levels of subsidence, putting millions at risk of flooding especially as sea levels rise.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Judge says 'no evidence fully supports' murder case against Umar Zameer as jury starts deliberations
The judge presiding over the trial of a man accused of fatally running over a Toronto police officer is telling jurors the possible verdicts they may reach based on the evidence in the case.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn't over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball's highest scorer Caitlin Clark's first news conference as an Indiana Fever player.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.