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
Pedestrian, baby injured after stroller struck and dragged by vehicle in Squamish, B.C.
Police say a baby and a pedestrian suffered non-life-threatening injuries after a vehicle struck a baby stroller and dragged it for two blocks before stopping in Squamish, B.C.
Senate expenses climbed to $7.2 million in 2023, up nearly 30%
Senators in Canada claimed $7.2 million in expenses in 2023, a nearly 30 per cent increase over the previous year.
Demonstrators kicked out of Ontario legislature for disruption after failed keffiyeh vote
A group of demonstrators were kicked out of the legislature after a second NDP motion calling for unanimous consent to reverse a ban on the keffiyeh failed to pass.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
RCMP uncovers alleged plot by 2 Montreal men to illegally sell drones, equipment to Libya
The RCMP says it has uncovered a plot by two men in Montreal to sell Chinese drones and military equipment to Libya illegally.
Government agrees to US$138.7M settlement over FBI's botching of Larry Nassar assault allegations
The U.S. Justice Department announced a US$138.7 million settlement Tuesday with more than 100 people who accused the FBI of grossly mishandling allegations of sexual assault against Larry Nassar in 2015 and 2016, a critical time gap that allowed the sports doctor to continue to prey on victims before his arrest.
BREAKING Canucks goalie Thatcher Demko won't play in Game 2
The Vancouver Canucks will be without all-star goalie Thatcher Demko when they face the Nashville Predators in Game 2 of their first-round playoff series.
Man wanted in connection with deadly shooting in Toronto tops list of most wanted fugitives in Canada
A 35-year-old man wanted in connection with the murder of Toronto resident 29-year-old Sharmar Powell-Flowers nine months ago has topped the list of the BOLO program’s 25 most wanted fugitives across Canada, police announced Tuesday.
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.