Three people entrusted with comprehensive review of NB Power were named on Friday.
As NB Power projects “significant” rate increases, the Holt government announced a three person team in-charge of leading a comprehensive review of the debt-laden NB Power.
The team includes; Michael Bernstein and Duncan Hawthorne, former energy sector executives, and Anne E. Bertrand, former member of NB Power’s board of directors and information and privacy commissioner for the province.
“We have every confidence in this team and its ability to conduct a transparent, collaborative and evidence-based review while engaging with New Brunswickers and stakeholders” said Finance Minister René Legacy, who is also the minister responsible for the review, in a press release.
“The ultimate goal is affordable, reliable, sustainable electricity for New Brunswickers,” said spokesperson for the department, David Kelly, in comment to The Courier.
The team will be responsible for gathering and analyzing data, conducting public engagement, and providing recommendations based on their findings. In addition to the three leaders, there will be a steering and advisory committee to support the review. The steering committee will be comprised of representatives from the government and NB Power. The advisory committee will be made up of “external representatives, including First Nations, who will provide perspective to the review team throughout the process,” said Kelly.
Public engagement for the review will come in the form of “surveys, virtual and in-person meetings, public submissions, etc.,” said Kelly. More information on the reviews public engagement will be delivered in the coming weeks.
“NB Power welcomes this review as an important opportunity to take a closer look at the challenges we face and explore better ways to address them,” said NB Power spokesperson, Dominique Couture, in a statement to The Courier.
The call to review NB Power comes as the province grapples with rising utilities costs. Rates of which have risen by 20% in the last 2 years.
The province delivered a 10 per cent rebate in January of this year but “discussions on options to help people in the short-term are ongoing,” said Kelly.
Read also: Another NB Power rate hike takes effect Tuesday
“We will continue to support this important work by sharing information, data, and our own expertise, and by working closely with our Board of Directors, the provincial government, and other partners to deliver sustainable solutions for all New Brunswickers,” said Couture.
Final recommendations and decisions related to the review made by the trio are expected to be heard by the end of March 2026.
Neither the trio nor the Government have ruled out selling the crown corporation.
“Everything is on the table as part of this review, however, government is not actively pursuing a sale of the utility. If the review points to the disposal of certain assets which can lead to a positive outcome for New Brunswickers, then it may be considered,” said Kelly.
The rising rates can be attributed to its debt of about $5-billion the company is shackled to, on top of needing to invest millions into new projects.
“As a cost-of-service utility, NB Power must recover its operating expenses through the rates charged to customers,” said NB Power in a follow up. “The cost of delivering power has also risen significantly, yet rates were held artificially low for an extended period. As a result, NB Power’s electricity rates remain among the lowest in Atlantic Canada, despite rising costs.”
Every energy provider across Atlantic Canada uses a slightly different rate scale so The Courier was not able to verify this claim. Although a review of the power rates in Nova Scotia, PEI, and Newfoundland‘s show that this claim is accurate.
“Significant investment has been needed to maintain and modernize our aging infrastructure. While necessary for long-term stability, capital-intensive projects have increased NB Power’s debt burden. At the same time, it’s important to note that much of our debt is tied to valuable, long-term assets that continue to generate power and support the energy needs of New Brunswickers,” said NB Power.
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