NB Power defends large rate increase application at EUB hearing

NB Power participates in an Energy and Utilities Board meeting on June 24, 2024. (Source: Laura Brown/CTV News Atlantic)

New Brunswick’s electrical utility is in front of the Energy and Utilities Board Monday, making its case for a large rate increase spread over this year and next.

It’s asking for differential rate hikes, so different classes or groups would see varied increases. If approved, residential rates would increase almost 20 per cent. One of those hikes already took place in April, but NB Power is asking it be made permanent.

New Brunswick Power CEO Lori Clark began Monday morning explaining how important these increases are for the utility, describing “significant” aging infrastructure, looming climate change impacts and a growing debt.

That debt is now over $5 billion.

“We are facing the same challenges as other electric utilities around the world, like the effects of climate change, which is causing more intense weather in our region, increased load growth, aging infrastructure, looming capital expenditure requirements, inflation, supply chain challenges and increased customer demand,” Clark said.

J.D. Irving representatives posed the first questions, asking about the utility’s equity target, which has given NB Power a deadline of March 31, 2029. Clark says the plan to get there is through rate increases and “cost optimization” efforts.

Clark said there are a number of huge projects - Mactaquac Dam, Point Lepreau upgrades, conversion of Belledune Generating Station - on the horizon, which are going to be extremely costly to the utility.

The rate hearing is expected to take several days over the summer.

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