Minister says N.B. Power will need to justify VP salary if Ontario company runs Lepreau
Opposition MLAs question nuclear executive’s large salary, expenses in light of plant’s operating problems
Mike Holland defended Brett Plummer's large six-figure salary to reporters Friday, but acknowledged that the provincial utility would face questions if Ontario Power Generation is brought in to improve the plant's performance.
Plummer, an American nuclear engineer, is being paid around $675,000 U.S. this year, N.B. Power says. That's more than $910,000 Cdn at current exchange rates.
"In the event that the existing HR framework was there and a successful deal was struck, then I would be posing the question to the utility: help me understand why everybody that's in their positions are justified and earning their keep," Holland said.
Brett
Plummer, an American nuclear engineer, is being paid around $675,000
U.S. this year, N.B. Power says. That’s more than $910,000 Cdn at
current exchange rates. (Roger Cosman/CBC)
N.B. Power confirmed this week it was discussing a partnership with the Ontario Crown corporation and said "some OPG ownership" of Lepreau was a possibility.
On Friday, Holland said that could mean an equity stake in the plant.
Lori Clark, CEO of N.B. Power, said in a statement that the plant would not be sold.
Utility spokesperson Dominique Couture said the talks were at "an exploration stage" so it was too early to comment on how an agreement would affect Plummer's position.
She did not respond to a request for Plummer's current salary.
Premier Blaine Higgs has refused to talk about what a deal might look like, but pointed out this week that Ontario Power's large fleet of nuclear reactors "means they have a level of expertise there."
He said Lepreau has had "ups and downs" and Ontario Power might be able to get "better capacity" at the generating station.
The plant has had a series of problems since a $2.4-billion refurbishment wrapped up in 2012.
It produced only 90 per cent of the electricity expected of it during the first 7½ years after refurbishment, costing the utility $200 million in electrical production.
N.B.
Power confirmed this week it was discussing a partnership with the
Ontario Crown corporation and said 'some OPG ownership' of the Point
Lepreau nuclear generating station was a possibility. (Submitted by NB Power)
A shutdown last December wiped out all of the utility's projected profit for this year, adding to its $5.3 billion debt.
"I think it's fair to ask questions. Obviously he was brought in to put Point Lepreau on the right path," Opposition Liberal energy critic Keith Chiasson said Friday.
"The nuclear station has been underperforming for years. It's hard to find expertise in the country, I understand that. But his mandate was clear: bring it back to where we expect to be."
Green Leader David Coon agreed.
"That plant failed and they need to justify why they thought that was the solution."
Chiasson obtained Plummer's 2022 travel expenses through a right to information request, showing he billed $12,827.94 in living expenses and $15,311.88 in mileage during the year.
Holland said Plummer has a home in Maine and a residence in New Brunswick.
Opposition
Liberal energy critic Keith Chiasson obtained Plummer’s 2022 travel
expenses through a right to information request, showing he billed more
than $28,000 in living expenses and mileage during the year. (Jacques Poitras/CBC News)
"I'm not familiar with the breakdown of his travel and whatnot," Holland said. "I just know that I have access to him whenever I want to."
The minister argued the nuclear engineering field is highly specialized with a small pool of talent.
"I encourage everyone to step back and have a look at it in the scope of the nuclear world that's out there. I don't think an excessive amount that's being paid based on salary ranges for folks with similar expertise," he said.
"The idea to get the person that's best qualified to do it. The residence of choice doesn't matter to me. The whole concept is to make sure you have someone qualified for the position."
However, the minister acknowledged that New Brunswickers — and Ontario Power Generation — may question the salary and expense arrangements if N.B. Power decides it needs a partner to get Lepreau on track.
"OPG wouldn't be entering into a deal if there was extraneous components to it, I would assume. So I would therefore turn around and say 'explain to me how this framework works and how everybody justified their position.'"
Couture's email said Plummer has more than 40 years of commercial nuclear experience, and the travel and living expenses are part of his contract.
"All expenses follow a rigorous verification and approval process," she said.
N.B. Power CEO Lori Clark said in a statement that Lepreau would not be sold. (Jonathan Collicott/CBC)
Holland told reporters their questions about future of the VP nuclear position were based on "a presupposition of a situation that has not been presented to me."
He said he was not involved in the discussions with Ontario Power Generation.
"I'm assuming, because I'm not sitting at the table with those negotiations, the whole structure, logistics and org chart will be fleshed out as to how a successful partnership would look."
Clark's statement said the status quo is not an option for the utility but it was too early to sketch out a possible agreement with Ontario Power.
"This work is being advanced by NB Power, utility to utility, and we will present to government when there is more information.... It is too early to determine what form this partnership could take."
ABOUT THE AUTHOR
Selling NB Power to them is a completely different ballgame. I'll buy their power to meet our excess demands, but won't sell the ship and be at their mercy.
Shawn Graham found that out the hard way, as you are well aware; and so am I.
C'est Vrai
Seriously? While true that "NB Power does not offer bonuses to non-bargaining
employees, including senior executives", that's just smoke & mirrors. The bonuses are built into their contracts, and not included in the reported salary figures. Anyone who thinks otherwise is likely very naive.
This is clearly highlighted in this old CBC article defending (at the time) the CEOs bonus. Don't think for an instant that none of the other top brass don't negotiate similar bonus terms into their contacts. By definition, this makes them "bargaining employees".
https://www.cbc.ca/news/canada/new-brunswick/nb-power-ceo-defends-bonus-a-contract-is-a-contract-1.777804One has to ask...how?...why??? Seems to me we're getting fleeced on NB Power's hugely exorbitant salaries.
Perhaps he was brought here to set up this deal? Have to question US involvement in the deal it would seem?
Usually such service in the private sector involves safewords.
Higgs
said new shale gas development in an area near Sussex known as the
McCully Field could tap into a reserve containing a trillion cubic feet
of natural gas. (Pierre Fournier/CBC)
Pabineau First Nation Chief Terry Richardson says he's opposed to the idea of resuming hydraulic fracturing in New Brunswick. (Ed Hunter/CBC)
Shale
gas exploration in eastern New Brunswick prompted protests resulting in
RCMP vehicles being burned and dozens of protesters being arrested in
Rexton in fall of 2013. (Andrew Vaughan/Canadian Press)
Energy
Atlantica president Todd McDonald says new shale gas developments could
satisfy local markets and the leftovers could be exported to other
countries. (Energy Atlantica)
Economist Herb Emery says it's going to take about a decade to develop the resource and get it to market. (CBC)
And where did you come up with the ridiculous assumption that NB'ers are against buying from Hydro Quebec?