NB Power is looking to implement a new tax as a way to deal with the high cost of extreme weather events.
The utility is asking the Energy and Utilities Board for permission to add a levy to help pay for so-called “uncontrollable events.”
"Over the last few years, we have encountered more frequent and severe weather events throughout the province. Because NB Power is not able to know when these major storms will occur and how much they will cost the utility, they are difficult to include in our annual budgets," said NB Power spokesperson Marie-Andree Bolduc in a statement.
More than 130,000 NB Power customers were thrown off the grid by a damaging ice storm last year. Repair costs exceeded $30 million. NB Power took a similar hit in the aftermath of post tropical storm Arthur, when repairs cost $23 million.
Despite that, some say those events are already impacting rates.
"You can see a few years, their 10-year plan suggested two per cent rate increases for a few years, then reducing to one per cent increases,” says public intervenor Heather Black. “But now, their latest version of the 10-year plan pushes those two per cent increases further into the future. That's where you're seeing that surcharge, or adjustment now."
Customers say many of their questions on the surcharge have gone unanswered.
"Would they just put it on for two or three months, or would it end up being part of the normal bill once people got used to paying the slightly higher price?" asks Rothesay resident Robert Taylor.
“Why isn't that in their budget? If they're doing their budget and they're looking five years ahead, why can't they have all this in place?" wonders senior Sherman Palmer.
Anti-poverty activist Randy Hatfield says the board needs to be mindful of the impact of higher power bills, as they’ll hurt low and fixed-income residents the most.
"It's a fixed cost. I think for a lot of people, it's not a bill you can avoid, and it's not one you can scrimp on. You can turn your thermostat down, but in the winter, in January and February and December this year, it was cold," says Hatfield.
The Energy and Utilities Board will be hearing arguments on the so-called weather surcharge over the next month.
Nova Scotia Power tells CTV News it currently is not considering a new surcharge to cover severe weather events at this time.
With files from CTV Atlantic’s Mike Cameron.
