ROUND 3 NB Power says it needs lower rate increase

 Oh My Methinks Mr. Jones quotes a lawyer who quoted a true wiseguy N'esy Pas?

 

"It does seem like things are taking a fairly hard right turn here," said J.D. Irving Ltd. lawyer Christopher Stewart during a submission in favour of halting the hearing until next week when NB Power will unveil a new rate increase request based on its insurance windfall.  "Let's see that evidence and let's move on from there. We don't know what we don't know." 

 

Confucius said:

"What you know, you know, what you don't know, you don't know. This is true wisdom."

http://www.cbc.ca/news/canada/new-brunswick/nb-power-rate-hearing-continue-1.4595821

Despite not knowing proposed rate increase, NB Power's rate hearing pushes on

EUB decides against delay after flap over secrecy of utility's settlement with insurers

Robert Jones · CBC News · Posted: Mar 27, 2018 7:31 PM AT |

NB Power doesn't know the new rate increase it needs to apply for as a result of a settlement with insurance companies over the refurbishment of Point Lepreau. (Shane Fowler/CBC)

Ongoing secrecy around what insurance companies will pay NB Power for claims arising from the Point Lepreau nuclear plant refurbishment — and the effect that will have on power rates — threw the schedule of its ongoing marathon rate hearing into more turmoil Tuesday.

The hearing is already four weeks behind schedule following a number of delays and unexpected developments and participants were divided on whether proceedings should be suspended again until more is known about the Lepreau deal.

• NB Power reverses 'weather tax' proposal after public backlash
• NB Power says it needs lower rate increase after settlement with insurers
• NB Power's proposed residential rate hike may be too high, hearing told

"It does seem like things are taking a fairly hard right turn here," said J.D. Irving Ltd. lawyer Christopher Stewart during a submission in favour of halting the hearing until next week when NB Power will unveil a new rate increase request based on its insurance windfall.

"Let's see that evidence and let's move on from there. We don't know what we don't know."

J.D. Irving Ltd. lawyer Christopher Stewart argued the EUB hearing should be halted while NB Power calculates its new rate increase. (Shane Fowler/CBC)

Keep details secret

NB Power announced on Monday it successfully ended a six-year legal fight with various insurance companies over their refusal to pay damage claims it made under policies taken out to cover the Lepreau refurbishment. 

The claims were for more than $300 million but the utility has not said how much of that will be paid. It argues the information should not be released because it would damage attempts to pursue further compensation from its contractor at Lepreau, Atomic Energy of Canada Ltd.

"Both NB Power and the insurers have a substantial commercial interest in maintaining confidentiality with respect to the settlement agreement to the fullest extent possible for as long as possible," the utility claimed Monday in explaining to the EUB why it wanted to keep the settlement details secret.

NB Power has said the settlement is large enough to reduce the need for the full two per cent rate increase it applied for this year but it has been given until next Wednesday to calculate what that new rate increase will be.

NB Power lawyer John Furey argued the EUB hearings could continue to deal with other matters while the new proposed rate is calculated. (Philip Drost/CBC)

Stewart and EUB lawyer Ellen Desmond argued Tuesday there was a fundamental problem in continuing with a rate increase hearing when the proposed rate increase is a mystery, but the hearing is so far behind schedule other participants argued to keep moving anyway.

More stuff to cover

NB Power lawyer John Furey said there are a number of issues to be covered unrelated to rates and the board should push forward on those.

EUB lawyer Ellen Desmond argued there was a fundamental problem in continuing with the rate hearing while the rate remained a mystery. (Shane Fowler/CBC)

"We have work that can be done and so NB Power's view is that we should press on in the areas we can," said Furey.

Others, like public intervener Heather Black, agreed further delays would be worse than waiting for more information on the financial implications of the settlement.

"It's very difficult to know in the absence of seeing the evidence to know what the best approach is so in the absence of knowing I think we should continue on," Black said.

Black and Stewart also gave notice they would be objecting to NB Power's blanket request to keep details of the Lepreau settlement secret, an issue that will be heard within the next two weeks.

EUB Board vice-chairman Francois Beaulieu, seated with board member Patrick Ervin, said the hearing will continue and concentrate on issues not directly connected to power rates. (Shane Fowler/CBC)

Board vice-chair Francois Beaulieu ruled the rate hearing itself would continue in the meantime and concentrate on issues not directly connected to power rates.

The hearing, which has covered smart meters, energy efficiency programs, storm damage surcharges and the rate increase began Feb. 7 and was originally scheduled to conclude Feb. 23. 

http://www.cbc.ca/news/canada/new-brunswick/weather-tax-dead-nb-power-1.4594680 

NB Power reverses 'weather tax' proposal after public backlash

Severe weather events in the past 4 years have drained the utility more than $60M

Robert Jones · CBC News · Posted: Mar 27, 2018 8:44 AM AT
  

39 Comments 

Commenting is now closed for this story.

Content disabled.

David Amos

"Ellen Desmond, a lawyer with the Energy and Utilities Board, said she doesn't want to see the proposal come to light again after the 2018 provincial election"

Methinks the Lady should have displayed the same concern on Halloween when she supported my being barred from the hearing and caused me to consider running for public office again N'esy Pas?

Content disabled.

David Amos

Oh My CBC Blocked Me Out of the Gate Why Is It That I Am Not Surprised?

  

David Amos

I read some of the recent filings in this circus and it appears to me that this hearing going to go on for a while kinda like the slow moving train that did poor old Jumbo.

Methinks that much to the chagrin of "The Powers That Be" NB Power is suffering the same fate as Jumbo under the wheels of justice that do grind very slowly within the EUB N'esy Pas?

 
David Amos

Methinks that this is not news N'esy Pas?

Shawn McShane

And we don't want the "not so smart" meters either. Anyway NB Power just got a pay out from Insurance regarding Pt. Lepreau.

Yesterday: NB Power Reaches Settlement with Nuclear Insurers and Seeks Permission for Lower Rate Increase

https://www.nbpower.com/en/about-us/news-media-centre/news/2018/nb-power-reaches-settlement-with-nuclear-insurers-and-seeks-permission-for-lower-rate-increase/

David Amos

@Shawn McShane "not so smart" meters???

Methinks I coined that phrase N'esy Pas?

Shawn McShane

@David Amos NB Power's smart meters plan not so smart, 2 expert reviews find

http://www.cbc.ca/news/canada/new-brunswick/nb-power-smart-meters-experts-eub-1.4504618

David Amos

@Shawn McShane I said it during the 357 Matter That is the one and only reason I Intervened in the 375 Matter immediately after it was shut down

David Amos

@Shawn McShane Notice someone sitting beside Roger Richard?

http://www.cbc.ca/news/canada/new-brunswick/eub-hearings-nb-power-smart-meters-1.4529640

 

David Webb

Wait until the election is over. If the lib's happen to get re-elected this one will get pulled back out.

David Amos

@David Webb YUP

  

Jerome McInerney

What about a 'Management Tax'?... placed on the managers and govt. officials that have run our public utility into the ground.

David Amos

@Jerome McInerney Methinks you jest I suspect that they will expect a raise for doing all the hard work in retracting their words before they embarrass the "Power That Be" N'esy Pas?

  

Roy Kirk

A 'weather tax' and similar such measures that reduce the financial risks borne by the utility make little sense as long as the utility has a corporate structure. The managers are paid good salaries and the owners a substantial return on equity precisely to compensate them for the difficult job of managing such and other risks of doing business. The 'wait until it breaks and then repair it' approach that the 'weather tax' incentivized is not in the long-term best interests of the province. If it is financial necessary, it should only be implement alongside significant reductions in senior management's salaries and benefits and a reduction in the risk premium paid to the shareholder. Such reductions in regular expenses are entirely consistent with a policy to push the risk back on the ratepayers

David Amos

@Roy Kirk I disagree I look about the "Tax" as unnecessary insurance. We are the owners and I see no a substantial return on equity In fact according to KPMG very questionable we have hardly any equity at all. When I asked the fancy NB Power dudes if that were remotely true then why would a Crown Corp in Quebec buy our debt? They had no answer for me Surprise Surprise N'esy Pas?

 

Rosco holt

@David Amos
Quebec was interested in transmission to keep NFLD from accessing the states.

David Amos

@Rosco holt Methinks they wanted to sell power to the USA and they made a deal to do so byway of Vermont without having to purchase the headache commonly known as NB Power N'esy Pas?

 
Eldon Robichaud

Its a delay. It will come back after the election

David Amos

@Eldon Robichaud Bet on it

 
Shawn McShane

NB Power Reaches Settlement with Nuclear Insurers yesterday...I thought NBers were charged extra already:

2010 NB Power rates to increase extra 3% because of cost overruns at Point Lepreau nuclear generating station, overrun would translate into a three per cent rate increase on top of the three per cent announced earlier, said NB Power vice-president Darren Murphy.

http://www.cbc.ca/news/canada/new-brunswick/nb-power-rates-to-increase-extra-3-1.936328

David Amos

@Shawn McShane Good point sir

 

David Amos

@Shawn McShane However there was an election that year that the liberals lost

http://www.cbc.ca/news/canada/new-brunswick/nb-power-developing-rate-freeze-plan-1.868222

Shawn McShane

@David Amos More like a "rate cap." The Alward government instituted a three year rate freeze following the 2010 election. However, NB Power is still allowed to raise rates by two per cent every year. Any more of a rate increase will force NB Power to defend its rates to the Energy and Utilities Board.

David Amos

@Shawn McShane Trust that I know all about it. Why else would I intervene in the hearings?

John Jude

1) They ask to charge people after weather events cause damage
2) I ask try to prevent weather damage by calling NB Power and asking them to trim the branches rubbing the lines going to my house and to remove the snags withing meters of the line
3) NB Power tells me "no", you're on your own until the trees come down on the wires or overhang the wire by >30 degrees, or the wires "deviate" significantly. Not even a site visit, just a response from someone sitting in an office at a computer

So "we want to charge you for weather damage, but we refuse to do anything to prevent weather damage". So either I pay after the fact, or pay a local company to trim the lines now. Either way, I pay to maintain their service....which I'm paying for.

I wish I could afford to go off grid.

David Amos

@John Jude "I wish I could afford to go off grid"

Methinks poor old folks such as I can't afford not doing ASAP N'esy Pas?

 
Joseph Vacher

thats great, they won the lawsuit that we were paying for, and kept the money for themselves

David Amos

@Joseph Vacher Not exactly

  

 

Dave Buote

And who owns NB Power? Just another tax on this dumb broke province. LOL

David Amos 

@Dave Buote "And who owns NB Power?"

Methinks you do along with the rest of the poor folks and the wealthy ones as well. N'esy Pas?

 
Tom Simpson

And common sense prevails. What a bad idea this was...

David Amos

@Tom Simpson Methinks common sense never has a chance to prevail Its just an illusion N'esy Pas?

 

Fred Dee

We all know that this was a setup... makes Gallant look good!! Yet we all know he knew about this months ago!!

Give me a great. Gallant saves us from himself again!!!

David Amos

@Fred Dee Methinks folks see a lot of egg on the faces of many politicians not just liberals N'esy Pas?

David Amos

Most Notable Quote? Survey says?

Ellen Desmond, a lawyer with the Energy and Utilities Board, said she doesn't want to see the proposal come to light again after the 2018 provincial election. "I think that would call into question the integrity of the process."

OR

Furey said the utility plans to seek public input before developing any alternative proposal, but said he would be "shocked" if it resulted in anything similar to the suggested "weather tax." "NB Power's intention today is that this specific mechanism will not be brought back before the board," he said.

http://www.cbc.ca/news/canada/new-brunswick/nb-power-nuclear-insurers-lower-rate-increase-1.4593008

NB Power says it needs lower rate increase after settlement with insurers

Overall rate increase would be adjusted down from the original overall request of 2 per cent

CBC News · Posted: Mar 26, 2018 10:35 AM AT |

43 Comments 

Commenting is now closed for this story.

 
David Amos

Methinks the plot thickens rather nicely N'esy Pas?

  

David Amos

Methinks lots of folks would like to know how much of the taxpayer's money was squandered in the fancy EUB hearing last year that went nowhere fast. Now this hearing certainly appears to be going down the same yellow brick road before April Fools Day N'esy Pas?

Better yet Cui bono?

David Amos

Trust that I am looking forward to KPMG next audit of NB Power. I wonder if they got enough in settlement to meet the 20% equity target required by the Act years ahead of ? Better yet will they take the newfound cash and squander it on the not so Smart Meters by buying them outright rather than begging to borrow the money for them?

Guess what? Methinks we won't know the result of the next KPMG audit of NB Power until after the next election is history. Surprise Surprise N'esy Pas?

 
Dwight Mullover
the EUB is such a waste.

NB power does the same thing every year...we need 3.5% and then they settle on 1.4% increase. They do this to fool people into thinking, well, it could have been worse. NB Power should not get an increase every year. The government and these government corporation need to wake up to the fact that people do not have unlimited resources. Our economy is hurting in New Brunswick because we do not have the discretionary income other Canadian have; our money is going to taxes and heat.

David Amos

@Dwight Mullover "The government and these government corporation need to wake up to the fact that people do not have unlimited resources."

Trust they know it but quite simply don't care. Methinks apathy rules the day when one has a secure job and a lucrative pension t look forward to N'esy Pas?

 
Roy Kirk

One hopes the Board will have them file the agreement so that it can make an independent examination of it. Taking the executives at their word would seem to be imprudent at this point. This point being the countdown to an election.

Douglas James

@Roy Kirk Same tactic used by the city of Saint John. Taxpayers paid for an "independent' consultant's report on the fairness of the refinery water rate deal. The city refused to release even one word of the document because "it would give away our negotiating strategy". It took 14 years to negotiate the deal. Of course, in the real world, that means there was no strategy and likely no negotiations. Irving refused to sign until it was convenient for them to do so.

David Amos

@Douglas James Methinks the dudes who made out like the bandits they truly are are the lawyers who delayed it for 14 years N'esy Pas?

 
Colin Seeley

No weather tax. Now less rate rise.

And it all looks good on Gallant.

Nothing could be further from the truth.

David Amos

@Colin Seeley YUP

 
Greg Miller

Did the Federal Government through its ties with the Crown agency responsible in the refurbishment ever own up to delays and questionable project setback?

David Amos

@Greg Miller I have been asking that question for years

 
Rosco holt

Can we give part of the Pt. Lepreau bill to Benard Lord?

He sign the costly refurbishment arrangement knowing that it was experimental.

David Amos

@Rosco holt I wholeheartedly agree

 

Rachel T. Scott

They signed a non-disclosure with the insurers? Wow. I feel raked over a barrel and have whiplash from the bizarre information coming from NB Power. Weather taxes and non-disclosures with a public utility??? Gallant you need to gut this bloated agency and put in people that can do the job effectively. I have had enough of this insanity!

Rosco holt

@Rachel T. Scott
They've retired allot of their competent employees and replaced them with incompetent party appointments.

David Amos

@Rosco holt YUP

 
Douglas James

If he received intelligence reports from the hamlet of New Brunswick, Vlad Putin would be laughing his head off. We're talking about 'weather taxes' and 'smart meters' while, according to the CIA, the Russians have the ability to hack into and knock out the entire North American power grid. Maybe NB Power should apply for a rate increase to pay for candles?

David Amos

@Douglas James FYI Russians read my blog daily No kidding

Douglas James

@David Amos Lol. From Pushkin to Amos, they read it all.

David Amos

@Douglas James Why insult me?

David Amos

@Douglas James Perhaps you should talk to your friend Mr Jones Trust that he has watched me in action at the EUB hearings

 
Roy Kirk

'. . . the utility's board of directors has asked management to seek permission from the Energy and Utilities Board to temporarily adjourn the current hearings so NB Power can assess the implications of the settlement on the general rate application for 2018-19.'
===
This isn't rocket science; it's fairly simple accounting. Just file the agreement in confidence with the EUB and let it make the necessary adjustment to the revenue requirement. No need to wait until after the election.

Doing otherwise makes it look like an excuse to delay matters out of political expedience. And if NBPower proposes to do anything other than a straight-forward adjustment of revenue, it will throw their previously filed evidence into question.

So apply the KISS principle and file the documentation with the EUB and let them make the decision as to how the settlement impacts rates. It a better option than letting NBP's board get their hands on it. After all, they're the ones that approved the 'weather tax', the sole purpose of which was to absolve themselves and NBP mgmt of the need to make prudent decisions to manage their business risk.

David Amos 

@Roy Kirk "No need to wait until after the election No need to wait until after the election. Doing otherwise makes it look like an excuse to delay matters out of political expedience. And if NBPower proposes to do anything other than a straight-forward adjustment of revenue, it will throw their previously filed evidence into question. So apply the KISS principle and file the documentation with the EUB and let them make the decision as to how the settlement impacts rates. It a better option than letting NBP's board get their hands on it."

I must say I find it interesting that you applied the KISS principal.

In my humble opinion there is every need for the "Powers That Be" in their liberal idea of the "Place to Be" to have the EUB delay both the 357 Matter and now the 375 Matter until after the election.

Furthermore there is no way in hell that they did not know there was a settlement in the works for quite sometime. Its just that the press got very bad on the matter in the last week or so. Hence methinks they think if there is no EUB decision then there can be no more bad press about NB Power before the next election is history N'esy Pas?


 
Rachel T. Scott

Gaëtan Thomas you don\t have the authority to sign a non-disclosure with public funds at stake! He earns $665 a YEAR! FIRE HIM for God's sake Gallant fire him now! NB's have a right to know to the exact penny how much money we were given by the Insurance companies. How dare you buckle under to them Thomas! We should have gotten the entire billion.

http://www.cbc.ca/news/canada/new-brunswick/brett-plummer-nb-power-pay-eub-1.3934954

David Amos

@Rachel T. Scott Methinks we should have a long talk with Gaëtan's lawyers I believe he was the engineer in charge of refurbishing Lepreau. If so imagine what he knows. So of course he would make a deal and sign a non-disclosure if only to protect his own interests N'esy Pas?

 
Mario Doucet

Another scandal courtesy of the Gallant government, bye,bye.

David Amos

@Mario Doucet FYI It was Bernie Lord who dreamed up the EUB and the Alward government that dreamed up the Electricity Act

 
Joseph Landry

This is almost as good as watching the Trump saga on CNN.

Brian Robertson

@Joseph Landry
If you're watching CNN, you're watching the Trump fiction.
They have been the 'resistance[' cheerleaders ever since the election.

David Amos

@Brian Robertson Everybody knows I love a circus. Hence I watch everything when it boils down to politicking and money.. Methinks they are the greatest shows on earth N'esy Pas?

 
Brian Robertson

Here's an idea.
Try digging a little deeper and you won't need a rate increase at all.

This whole application for surcharges and rate increases seems poorly thought out.

Why not can these ripoff smart meters and you won't need any new money.

David Amos

@Brian Robertson Methinks folks should dig even deeper like I did before I Intervened for the second time last year and was barred from the hearing before it even began N'esy Pas?

Roland Godin

Politicians egonomics101: From contingency fund to contigency fun...et voilà.

David Amos

@Roland Godin One dead issue brings another et voila? 

 
Samuel Porter

Tired of being held hostage by the antics, poor service and poor maintenance, which is where we have been since the Mega ice storm of 1998. NB power can do no wrong, and is very quick to blame everyone but themselves for their woes. Extra-high wages and arrogance are a big part of their problem. Time to sell.

Rosco holt

@Samuel Porter
Do you really believe things would be better with a private company?

Do you trust our government to get the best deal for all it's citizens?

I don't.

David Amos

@Rosco holt I agree on both counts. However

Methinks If Hydro Quebec could be talked sweetly to and perhaps our debt and rates would plunge if NB Power was finally taken over by a far different Crown Corp N'esy Pas?

http://www.cbc.ca/news/canada/new-brunswick/weather-tax-dead-nb-power-1.4594680

NB Power reverses 'weather tax' proposal after public backlash

Severe weather events in the past 4 years have drained the utility more than $60M

Robert Jones · CBC News · Posted: Mar 27, 2018 8:44 AM AT

NB Power initially proposed the idea of recovering storm costs directly from customers to help support annual profit targets.

NB Power's "weather tax" proposal is officially dead.

The utility was initially seeking permission to levy surcharges on customers following major storm damage and other expensive, unexpected events.

The Energy and Utilities Board granted NB Power's request to withdraw the proposal on Monday. The decision was made after a whirlwind of public opposition blew up around the proposal over the last two weeks.

"The board grants leave to NB Power to withdraw its request  to implement a rate adjustment mechanism in this proceeding," said Francois Beaulieu, vice-chairman of the EUB.

• NB Power seeks to impose 'weather tax' to help pay for storm damage 
• EUB will consider NB Power request to drop controversial 'weather tax' 
• 'Weather tax' not necessary but more fair to customers, argues NB Power VP  

He made the announcement after hearing arguments about terminating the plan on Monday at NB Power's ongoing rate hearing.

"The board will treat the proposed rate adjustment mechanism as no longer an issue in this proceeding."

NB Power had proposed the idea of recovering storm costs from customers directly to help shore up its annual profit targets.

Those profits have been battered by severe weather events three times in the last four years, draining the utility of more than $60 million.

Strong public opposition 

But the idea of a storm surcharge generated strong public opposition, including criticism from Premier Brian Gallant.

Last week, the premier complained to the utility directly about the potential tax, stating he was "strongly opposed" to the idea and might overrule it if approved by the regulator.

John Furey, a lawyer with NB Power, said the proposed "weather tax" has no future. (Philip Drost/CBC)

Meanwhile, John Furey, a lawyer with NB Power, told the EUB the proposal had no future.

"NB Power has received input both from its shareholder and from customers with respect to the rate adjustment mechanism that was proposed in the application," said Furey.

"That input was overwhelmingly negative."

Furey's motion to retract the plan was not met with significant resistance.

But Ellen Desmond, a lawyer with the EUB, said if it was withdrawn, she did not want to see the proposal come back to life at a later date — including after this year's provincial election.

Ellen Desmond, a lawyer with the Energy and Utilities Board, said she doesn't want to see the proposal come to light again after the 2018 provincial election. (CBC)

"We would be concerned if this request came back in its current form in a very short period of time," said Desmond.

"I think that would call into question the integrity of the process."

Furey said the utility plans to seek public input before developing any alternative proposal, but said he would be "shocked" if it resulted in anything similar to the suggested "weather tax."

"NB Power's intention today is that this specific mechanism will not be brought back before the board," he said.

NB Power says it needs lower rate increase after settlement with insurers

Overall rate increase would be adjusted down from the original overall request of 2 per cent

CBC News · Posted: Mar 26, 2018 10:35 AM AT | 

Utility has asked for an adjournment of rate hearings while it studies implications of settlement. (Shane Fowler/CBC)

The settlement was with insurers that underwrote a construction all-risk insurance policy during the refurbishment project at the Point Lepreau Nuclear Generating Station, the utility said.

"This is a great day for NB Power and the people of New Brunswick," Gaëtan Thomas, NB Power the president and CEO said in a news release.

• NB Power's proposed residential rate hike may be too high, hearing told 
• Residential, commercial customers could bear the brunt of NB Power's 'weather tax'
• NB Power seeks to impose 'weather tax' to help pay for storm damage  

"While the specific details of this insurance settlement are subject to a confidentiality agreement at this time, we do know that the settlement allows us to seek a lower rate increase for all New Brunswickers in the current hearing."

As a result, the utility's board of directors has asked management to seek permission from the Energy and Utilities Board to temporarily adjourn the current hearings so NB Power can assess the implications of the settlement on the general rate application for 2018-19.

The EUB hearings have been going on since the beginning of February.

Disputed claim

Last summer, NB Power agreed to negotiate in November with insurers to try to settle claims for delays and cost overruns during the Lepreau refurbishment.

NB Power was claiming $320.1 million from the insurers, which would cover only a portion of the $1 billion the project  went over-budget.

• NB Power seeks to settle lawsuits over Point Lepreau refurbishment cost overruns

The refurbishment suffered a delay when the reactor's outer shell, called the calandria, was damaged with scratches during improper polishing in 2009.

Eight insurance companies, including Lloyd's Underwriting, refused to pay for the damage and rejected the utility's claim that the calandaria had been damaged accidentally.

"NB Power is pleased to have resolved this matter and to be in a position to share the benefits of this settlement with our rate payers," Thomas said Monday.

Hike already questioned

It is expected that the overall rate increase requested by NB Power will be adjusted down from the original overall request of two per cent.

Under an EUB rule, each customer group, including residential, should pay rates in a "range of reasonableness" between 95 per cent and 105 per cent of the costs NB Power incurs to serve the group.

But at a recent session, a lawyer for the utility board argued that NB Power was proposing to charge residential customers a higher rate increase than other groups, at 2.33 per cent.