A comprehensive review has been announced by the provincial government of New Brunswick’s largest utility NB Power.
“We have been listening to New Brunswickers and we have been hearing their worries and frustrations and concerns about rising power bills,” said Premier Susan Holt during a press conference.
Holt said it is something her government is taking seriously, but did not announce any new financial relief for customers.
“We need to ensure the financial sustainability of NB Power and the financial sustainability of NB Power’s customers,” she said.
In recent months, there have been several reports of increased power rates across New Brunswick. Holt said some of those concerns have come directly to her and her colleagues.
She said the review would lay out the options for the future of the company, and wouldn’t directly rule out any income, including the sale of the provincial utility.
NB Power has also carried a significant amount of debt since the mid-2000s, at roughly $5 billion.
“That’s part of what this review should get at,” Holt said. “What are the options for the debt. We’ve heard suggestions from economists that the government adopts the debt. We’ve seen in the past solutions of transferring that debt to a purchaser of the utility.”
During former Liberal Premier Shawn Graham’s first and only term in office, he proposed the sale of NB Power to Hydro-Quebec for roughly $3.2 billion.
Holt was asked about whether the ultimate option isn’t something New Brunswick wants.
“That actually comes down to politics at its core, is figuring out what is the right thing to do, what is the best thing to do, and what is the public willing to accept and prepared to accept,” she said. “That’s why we don’t have any predetermined outcomes here.
“Because what we’re hearing from New Brunswickers today is that they can’t afford double-digit rate increases year-over-year for the foreseeable future.”
In the past two years, New Brunswick ratepayers have faced about a 19.6 per cent increase – which was partly mitigated by a 10 per cent rebate by the Liberal government, which is estimated to cost $90 million.
It doesn’t include increases in service fees.
Holt said the three people chosen to oversee the full review will be people New Brunswickers can trust to bring forward the best options to create a sustainable future for the utility.
“They need to know we’re not going to put some temporary and political in place that could be undone tomorrow, that we fundamentally need to make sure that our utility is on a trajectory that is reliable, safe, affordable, and sustainable in all senses of the word,” she said.
She said those three individuals will be accessible to the public. There will also be an advisory committee with stakeholders, she explained.
“These three individuals will be putting their own names and reputations on the line and will be conducting those public activities and hearing from people because … regardless of whatever the recommendations are if New Brunswickers won’t accept them, either because they didn’t believe in the process or they don’t believe in the recommendations then we’re not going to be further ahead,” Holt said.
Holt promised the process would be open and transparent.
Finance Minister Rene Legacy did say the engagement period with the public and stakeholders is expected to begin in June and last until the fall.
“Our goal would be to have an interim report summarizing the public and stakeholder engagement released by the end of this year,” Legacy said. “Final recommendations and any decisions will come before the end of the current fiscal year, which is March 31, 2026.”
In March, several media outlets reported that both the Green Party said it was opposed to the sale of NB Power and the Progressive Conservative Party said any sale should go to a referendum.
Holt would not commit to a referendum, saying she didn’t want to pre-determine any outcome or recommendations.
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