Friday 7 February 2020

NB Power executive blames 'confusion' over misleading 2019 testimony

https://twitter.com/DavidRayAmos/with_replies





Replying to @alllibertynews and 49 others

Methinks Higgy should take my advice and start reading CBC comment sections then NB Power audited ASAP and but he won't N'esy Pas?



https://davidraymondamos3.blogspot.com/2020/02/nb-power-executive-blames-confusion.html




 




https://www.cbc.ca/news/canada/new-brunswick/nb-power-joi-scientific-eub-hearings-1.5455415



NB Power executive blames 'confusion' over misleading 2019 testimony

Utility did not disclose to EUB it was paying $20K a month to rent Florida lab connected to Joi Scientific


Robert Jones · CBC News · Posted: Feb 07, 2020 5:00 AM AT


NB Power vice-president Darren Murphy said there might have been some 'confusion' around why the utility did not disclose it was paying $20,000 to the Florida lab connected to Joi Scientific. (CBC)

NB Power executives were grilled Thursday about why the Energy and Utilities Board was told last May the company was not planning to spend any new money on a controversial hydrogen project between April 2019 and March 2020 even though at the time it was already paying $20,000 per month rent on a Florida lab to the project owners.

"The question was 'is there anything budgeted' and the response was 'nothing's budgeted,'" said EUB lawyer Ellen Desmond about assurances given by utility executives under oath last spring that NB Power had nothing in its spending plans for the year for Joi Scientific and its hydrogen-from-seawater project.

Transcripts from last year's rate hearing on May 22 show Desmond asking Darren Murphy, NB Power vice-president and chief financial officer, why she could not find any reference to spending on Joi Scientific in NB Power's extensive budget papers for the 2019-20 fiscal year - the so called "test year" being looked at by the hearing.


"When we were looking at the capital expenditures we were not able to see where the spending related to Joi Scientific could be located and maybe it is not in your capital spending sheet," Desmond said at the time. "Maybe there is no spending for the test year. We just wanted to clarify that point."

"Mr. Murphy, is there anything budgeted for the 19-20 year?" she asked.

"There isn't anything budgeted in the test year," Murphy replied.


EUB lawyer Ellen Desmond grilled NB Power executives Wednesday and Thursday about why the Energy and Utilities Board was not told last May about the utility's 2019 funding of a lab at Joi Scientific. (Graham Thompson/CBC)

It was an important exchange because Desmond said if NB Power was not spending any money on Joi Scientific in the fiscal year the EUB was reviewing last spring there was little the board could do to test the prudence of the project.

"In terms of being assured that the spending is prudent, normally that cost would be explored in the test year in advance," said Desmond.

But five months later in November 2019, NB Power president Gaëtan Thomas revealed to MLAs and reporters the utility had been spending new money on the Joi Scientific project after all, about $20,000 per month.


"We have rented a lab over there and to ensure we can recoup some of the investment we have made, we are keeping that lab going until we can make a decision whether we can go forward or not," said Thomas on Nov. 1.



NB Power CEO Gaëtan Thomas, right, and board chair Ed Barrett appeared before the legislature's Crown corporations committee last November and revealed the utility had been spending new money on Joi Scientific after the EUB was told the opposite five months earlier. (Jacques Poitras/CBC)

In December, CBC News reported records obtained under an Access to Information request showed the bill to NB Power for the Florida lab was $178,413 US (about $235,000 Cdn) over eight months as of October 2019, most of that spent in the fiscal year Desmond had been asking about back in May.

This week in lengthy exchanges with Murphy and Keith Cronkhite, NB Power senior vice-president of business development and strategic planning, Desmond has been seeking an explanation about why she was misled on Joi Scientific spending last spring.

Execs offer explanation


Under questioning, Cronkhite said the utility had come to an agreement with Joi Scientific to fund a lab in February 2019 and the first invoice for it arrived in April 2019, one month before last year's May rate hearing.

"Could you provide a copy of that lease?" asked Desmond.

"There was not an actual lease by NB Power for the lab facilities," said Cronkhite.


The Energy and Utilities Board held NB Power's 2019 rate hearing in May in St. Andrews. The board was told no new money was budgeted to be spent on Joi Scientific for the year, although it was. (Graham Thompson/CBC)

"It was simply with Joi being the operator at the facility at their location. There was an agreement to acquire additional lab space, which we provided compensation to them. So NB Power did not provide or did not sign a specific lease for lab space. It was more of not a formal agreement as we would understand today. It was basically a mutual understanding."

Desmond wanted to know if it was understood by the utility before its May rate hearing that it would be paying Joi Scientific out of money it was asking the EUB to approve at that hearing.

The answer appeared to be NB Power did know.
"These dollars would have been coming out of your revenue for 2019-20?" asked Desmond.
"They would have been expensed during the 2019-20 year," replied Cronkhite.

"In February, when you entered into that agreement it would have been anticipated that these payments would have had to have been made. Is that correct?" continued Desmond.
"Certainly portions of them," acknowledged Cronkhite.

'This is where we are having a bit of a struggle'


Desmond then pressed both Cronkhite and Murphy to explain why planned expenses for the lab were not revealed last May.

"This is where we are having a bit of a struggle,"  she said

Murphy told Desmond at the time he told her nothing was budgeted to be spent on Joi, it was  because he didn't have details of the lab expenses and thought she was asking about other potential expenditures related to Joi Scientific achieving performance targets outlined in the master licensing agreement between the parties.


NB Power paid Joi Scientific for lab space at the Space Life Sciences Lab in Merritt Island, Fla., through most of 2019 at a cost of more than $200,000. (Karissa Donkin/CBC)

"Unfortunately there seemed to have been some confusion around that," said Murphy.

"I was not in a position to talk about the ongoing operating expenses that may be incurred as a result of lab fees. My testimony was restricted to the licensing agreement as I didn't have the details to go beyond that."

Cronkhite said he did actually mention ongoing expenses at Joi Scientific in his own May testimony the day after Murphy, although Murphy acknowledged that no one, including Cronkhite, ever mentioned the lab arrangement.

"Upon conferring with Mr. Cronkhite, when he referenced the ongoing expenses that it was not identified at that time specifically what those were intended to be for," Murphy said. "To the best of our recollection, there would not have been reference to ongoing lab, although the expenses themselves would have been referenced, just no specific context to what they would have been for."








77 Comments
Commenting is now closed for this story.






David Amos 
Welcome back to the circus 











David Amos 
Methinks some folks must have noticed my faithful friend Roger Richard sitting among the snobby people the photo that is offered (It was taken after I left the room laughing) yet what we say and do is not worth mentioning N'esy Pas?


Marguerite Deschamps
Reply to @David Amos: wirh friends like you, who needs enemies?


BruceJack Speculator
Reply to @David Amos: Just read the transcript for May 22, 2019 meeting that the picture apparently refers to . . . yes, there is mention of Dr. Richard looking for a report from town of Shediac; he also asked if wired as opposed to wifi smart meters were being considered. Can you explain what that may have to do with NB Power covering up their $20,000 a month bill, which was the topic of this item?

David Amos  
Reply to @BruceJack Speculator: Methinks you should read what I said out of the gate N'esy Pas?


David Amos 
Reply to @Marguerite Deschamps: Methinks the same can be said of you SANB dudes N'esy Pas? 
 

Roger Richard
Reply to @Marguerite Deschamps: I have many acquaintances but very few friends. Mr. Amos is one of my friends: I can trust his words. It is very difficult to find a friend like that.



















BruceJack Speculator
New definition for the word "confusion". Hint: it starts with the letter "L"


David Amos
Reply to @BruceJack Speculator: Methinks you finding it harder to find some "Joi" making fun of Roger and me N'esy Pas?



















David White
... and they want you to take their word on 'Smart' Meters?


David Amos 
Reply to @David White: Methinks the folks who care should be made aware that NB Power must also ask the EUB for permission to pay 100 million loonies to Quebec for consultation fees on how to refurbish Mactaquac N'esy Pas?



















Jacob Minton
Employees who suffer "confusion" on a scale that loses millions to foreign scammers ought to be looking for work elsewhere. Where though? They're already in New Brunswick, the bottom of the barrel for competence and accountability, where the inept and negligent are rewarded with the highest salaries and pensions.


Kyle Woodman
Reply to @Jacob Minton: we are a Peter Principle province. No doubt. Time for a competencies audit. Who's really qualified for their position. Who's dragging others down.


David Amos 
Reply to @Kyle Woodman: Its not rocket science. Simply uphold the law

























Chuck Michaels
Duplicitous, evasive and scheming. Have I missed anything here? Should these people be given the key to the piggy bank? Heck, I don't even think they should have jobs. NO to JOI and NO to the meters. If that debacle-in-the-making should be green-lighted and go ahead it will be the ONLY "smart" thing in that organization. Time for some SERIOUS house-cleaning!


David Amos  
Content disabled
Reply to @Chuck Michaels: Methinks Higgy should start reading these comment sections N'esy Pas?


David Amos 
Reply to @David Amos: BINGO




















Fred Brewer
"It was an important exchange because Desmond said if NB Power was not spending any money on Joi Scientific in the fiscal year the EUB was reviewing last spring, there was little the board could do to test the prudence of the project.:It was an important exchange because Desmond said if NB Power was not spending any money on Joi Scientific in the fiscal year the EUB was reviewing last spring there was little the board could do to test the prudence of the project."

The above passage indicates NB Power had a huge motive to be untruthful in their testimony to the EUB. The question is: Were they hiding the truth, or was it just incompetence?
It seems they excel at both.



David Amos 
Reply to @Fred Brewer: Go Figure what your liberal heroes excel at


























Bliss Burgoyne
I agree with Cheryl Wright, Gaetan Thomas has been lying through his teeth all along, now all confused. All executives need to be booted NOW, they wasted millions of tax payer dollars, undoubtedly most of it in their pockets


David Amos
Reply to @Bliss Burgoyne: Scroll down





















Cheryl Wright
i think we need to kick Gaetan Thomas to the EI line. his dirty underhanded dealings has only cost us. he sits there with a smirk on his face while he lines his owns pockets. Maybe all of them need to be replaced and new ones brought in.


Bliss Burgoyne 
Reply to @cheryl wright: You are right


David Amos 
Reply to @cheryl wright: Methinks Minister Mikey Holland and his minions are helping Gaetan Thomas pack, shred documents and clear out his office Hence you are way past too late N'esy Pas?

























Greg Miller
NB Power = Spin = confusion. Yep you got that right!


David Amos  
Reply to @Greg Miller: YUP 
 

Lou Bell
Reply to @Greg Miller: " Nefarious Government Appointed Crown Corporation Executives" - Another " NB Minute , since 1867 " .






















Justin Gunther
This is another example of what might be called "double speak" in a CBC/NB Power story. The other example is the one with the headline about "critical endorsements" for smart meters, leaving you to wonder if they're just leaving a door open to change the meaning of critical endorsements if things go sideways for the smart meter plan.

Do you get it? Are they important endorsements, or are they endorsements given with reservations? It really can mean both things meaning they really can release another story next year and say, "we told you we had reservations."



Justin Gunther 
Reply to @Justin Gunther: I'm not insulting the population here, but let's be honest and accurate. if 53% of us truly are functionally illiterate it makes it very easy to get away with stuff like this.


David Amos 
Reply to @Justin Gunther: Methinks if you bother to read the transcripts since the 357 Matter began in the EUB your would see that I always "GOT IT" The sad part is the joke is on us N'esy Pas?


Justin Gunther
Reply to @David Amos: It certainly is, unless we organize and get more people on board with holding our clown-class overlords accountable.


















Paul Bourgoin
If NB POWER can manage their house in such manner and conscience there must be others homes or businesses who benefit of such sweetheart deals funded by the Poorest Province In Canada!  


Paul Bourgoin
This situation smells. New Brunswick, the poorest Province in Canada, has been duped financially again. I hope the Team of Joi Scientific didn't get a sunburn while in the Space Life Sciences Lab in Merritt Island, Florida. I wonder How? Who? When? will justify this situation!


David Amos  
Reply to @Paul Bourgoin: Cry me a river






















Dianne MacPherson
WOW...the trust meter in my opinion
on NB Power just hit bottom !!!



David Amos  
Reply to @Dianne MacPherson: High Time




















David Stairsoperating like a bunch of Bookies...it's like inrterviewing a seasoned criminal...you're not gonna succeed if you haven't done your homework...I think it's time to clean house and do a proper investigation....


Paul Bourgoin 
Reply to @David Stairs:Investigation, Dead on !! But who will do it ?
NB POWER MANAGEMENT?



David Amos 
Reply to @David Stairs: Methinks he is just another Artful Dodger testifying under oath Thats why he gets paid the big bucks N'esy Pas?


















McKenzie King
I guess you can't really trust anything the folks at NB Power say. I hope the EUB takes this into account when they rule on smart meters. Time for a change at the top, and not one where a golden handshake is given.


Wayne Wright 
Reply to @McKenzie King: never going to happen!!


David Amos 
Reply to @McKenzie King: I agree but methinks the EUB will make a political decision about "Not So Smart' netters I bet some folks agree that it hinges on whether or not the PANB will continue to support Higgy or not N'esy Pas?
























Johnny Jakobs
What other expenditures are they hiding?
We the taxpayers/ratepayers are a joke to NBPower. They don't care about NB, they care about their P.Eng ego's and how smart they are.
When will Mr. Higgs step in and fire some people responsible for this fiasco? Prolly never will.



Kyle Woodman
Reply to @Johnny Jakobs: they aren't that smart though. Probably worked at NBP their whole lives. Thomas did. They've never experienced how to run a utility in the real world. Why do you think they rely heavily on sketchy consultants and "experts"? They are probably the laughing stock of the electricity generating world. JOI, Orimulsion, LePreau, Mactaquac, the list goes on.


David Amos  
Reply to @Johnny Jakobs: BINGO


David Amos 
Reply to @Kyle Woodman: Methinks it would be foolish to doubt their smarts However they are far from ethical N'esy Pas?


Paul Bourgoin 
Reply to @Johnny Jakobs: When his Boss tells Him!


Kyle Woodman
Reply to @David Amos: In relative terms they can't be that smart. There are other examples of innovative, profitable utility companies throughout the world. NBP isn't one of them. AT ONE TIME it may have been well run but they have rested on the laurels of others. The brain drain is real.


David Amos 
Reply to @Kyle Woodman: Methinks everybody knows that the politicians have used NB Power as cash cow since I was a kid N'esy Pas?





















Wayne Mac Arthur
Confusion stems from it's source,on the board made up of those running the corporation.


David Amos  
Reply to @Wayne Mac Arthur: Methinks its par for the course with politically appointed people overseeing Crown Corps N'esy Pas?
























Mike Connors
Unfortunately these guy can tell fibs on a regular basis and there are ZERO consequences. People should have been fired over the JOI fiasco including the CEO, but as we know nobody paid a price for wasting our tax money. They would have upped our energy cost had they not known they would be called on it.


David Amos  
Reply to @Mike Connors: Methinks that not only did they up our power rates they got a raise in their salaries as well N'esy Pas?

























Ben Haroldson
Time for some drug testing at the exec level.


Terry Tibbs
Reply to @Ben Haroldson:
Followed by seeing if any of them can pass a GED.



David Amos  
Reply to @Terry Tibbs: Methinks it would not be wise to doubt their IQ even though it would be pretty easy to con David Alward, Higgy and the Peanut Butter Man into spending money we don't have on "Not So Smart" Meters N'esy Pas? 
 



























Paul Estey
Maybe its time foir Mr.Thomas to set the record straight as to who at NBP knew what and when they knew. Some clear and consise testimony is needed.


Mike Connors 
Reply to @Paul Estey: Don't hold your breath. Their friend Higgs has nothing to say about wasting tax payer money on a "pipe dream" but will nickel and dime nurses and nursing home workers.


Wayne Mac Arthur 
Reply to @Paul Estey: Mr T set the record straight ?? I don't think he would know where to begin.


David Amos
Reply to @Paul Estey: Dream on he is gone




























Kyle Woodman
Why do NBP execs always look so stunned?


Terry Tibbs
Reply to @Kyle Woodman:
Surely you see the sly humour in portraying these guys as folks who have received one too many electrical shocks?



David Amos
Reply to @Kyle Woodman: Because they are






























Gary Timberlake
No worries the NB Public has full confidence in the financial doings at our completely transparent Crown Corporation NB Power.
If you can't find the $20k itemized on their books that is called.......THEFT.



Mike Connors 
Reply to @Gary Timberlake: There are no consequences. These guys lie under oath. They waste millions of taxpayer money and Mr. Higgs stands back and smiles. The nursing home workers, who are caring for our most venerable ask for a $2.00 raise and the taxpayers can't afford it.


David Amos
Reply to @Mike Connors: Methinks many folks know that I proved long ago that oaths mean nothing to people who work for the Crown N'esy Pas?


Marguerite Deschamps
Reply to @Mike Connors: they should Iie on straw and be fed oat.


David Amos
Reply to @Marguerite Deschamps: Methinks you SANB dudes must be feeling your oats today N'esy Pas?






























Terry Tibbs
Time to spring clean over at NB Power. Starting at the top and continuing through the ranks until somebody credible can be found.


David Amos 
Reply to @Terry Tibbs: Everybody knows Mr Thomas is out the back door this month Methinks it should be interesting to see who Higgy appoints to replace him N'esy Pas?


























Justin Time
There seems to be nothing but "confusion" at NB Power. Time for a thorough forensic audit and some house cleaning.


Wayne Wright 
Reply to @Justin Time: "some house cleaning"????


David Amos 
Reply to @Justin Time: Methinks Higgy should take my advice and audit NB Power ASAP but he won't N'esy Pas?







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