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N.B. Power executives got an earful on Friday over their planned power-rate increases over the next three years.
The utility has applied for 5.5 per cent increases in each of the next three years, for a total increase of 17.4 per cent over that period.
“I could not believe it,” Progressive Conservative MLA Kris Austin told CEO Lori Clark during a meeting of the legislature’s public accounts committee.
“It’s out of control. … My phone hasn’t stopped, frankly.”
Austin told Clark he was disappointed that her openin
WATCH | ‘There are challenges’: Utility’s CEO takes heat for rate hike:
N.B. Power execs get an earful over rate increases
MLAs tell N.B. Power executives their constituents are angry about the planned 17.4 per cent increase on bills.
Clark repeated her now familiar message that a series of politically motivated rate freezes and caps by previous governments going back almost two decades deprived N.B. Power of the money it needed to maintain its generating assets.
With growing electricity demand and rising population numbers, that costly maintenance can no longer be avoided, she said.
“Looking back at it collectively now, we can see the impact that it’s had,” Clark said. “It was ‘we can do that later, we can do that later, we can do that later.’ Well, later is here.”
Progressive Conservative MLA Kris Austin said N.B. Power rate increases are “out of control.” (Chad Ingraham/CBC)
The three-year rate increase must be approved by the Energy and Utilities Board.
Chief financial officer Justin Urquhart said about one-third of the increase is due to the cost of complying with federal rules ending coal as a generation source by 2030.
Another one-third is to mitigate future increases to N.B. Power’s $6 billion debt, and the remainder is to cover other costs.
Even if the rate hikes are approved, “there is no debt reduction for N.B. Power in the foreseeable future,” Urquhart said.
Liberal MLAs reminded reporters of the rebate the Susan Holt government put in place early in its mandate for the 10 per cent provincial sales tax on power bills.
Green Party Leader David Coon called for new leadership at N.B. Power. (CBC News)
Following CBC News reporting that high-income households with high power bills were getting the most benefit from that program, Energy Minister René Legacy said he might replace it with another measure targeting low-income households.
Dieppe Liberal MLA Natacha Vautour said Friday she hasn’t heard any updates on that idea.
Green Leader David Coon called for new leadership at N.B. Power made up of executives who haven’t spent their careers at the utility like Clark has and who have new ideas.
Austin said that even after hours of questions and answers he wasn’t satisfied.
“It’s not good. I don’t feel any better now than when I went into committee, and New Brunswickers, ratepayers, are ultimately the victims of this.”