Revelation at N.B. Power rate hearing triggers order for more evidence
Utility told to hand over critical cost information it updated internally in January
The board made the order over strenuous objections from the utility.
"N.B. Power does … have an obligation to advise the board if there has been a material or exceptional change in its evidentiary package," EUB chair François Beaulieu said in ordering the updated material be provided.
"If corrections to the evidence are required, such corrections should be made at the earliest opportunity."
N.B. Power is seeking approval from the EUB for an 8.9 per cent rate increase effective April 1.
J.D. Irving Ltd. lawyer Conor O'Neil learned through cross-examination that N.B. Power has new cost estimates for the coming year that it has not shared at its ongoing rate hearing. He successfully argued they should be produced. (Ed Hunter/CBC)
Opponents of the application, principally forest product manufacturers J.D. Irving Ltd. and Twin Rivers Paper Company, have been questioning whether stale budget numbers used by N.B. Power in its application are exaggerating how much of an increase it really needs.
N.B. Power's evidence shows it plans to buy $1.09 billion worth of oil, coal, natural gas, uranium and wholesale electricity to generate and supply power to customers in the coming year — an estimated increase of $403 million over the current year.
It's the main reason for the size of the rate increase N.B. Power is seeking, but costs quoted for those commodities in the application were calculated back in June 2022 and that has become a focus of the hearing.
Commodity prices have generally fallen since then and hearing participants have been probing whether that opens the door to the rate increase being lowered.
N.B. Power lawyer John Furey argued against the utility being made to supply updated cost numbers it generated internally in January for the coming year. He accused J.D. Irving Ltd. of cherry-picking information to support its case undermining the utility's rate increase request. (Ed Hunter/CBC)
That effort has been energized by a surprise disclosure made during cross-examination of an employee at the centre of creating the cost estimates from last summer who acknowledged newer estimates exist.
Under questioning from J.D. Irving Ltd. lawyer Conor O'Neil, Craig Church, N.B. Power's chief modeller, explained elaborate simulations of N.B. Power's operations meant to estimate electricity supplies and costs are created internally every three months.
That immediately caught O'Neil's attention.
Energy and Utilities Board Chair François Beaulieu has ordered N.B. Power to produce updated cost estimates for what it is spending on fuel and purchased power next year. (Ed Hunter/CBC)
"Did you run one in January 2023?" he asked.
"Yes we did," said Church.
"Can we have that?" said O'Neil.
N.B. Power lawyer John Furey objected to the request.
Furey told the board many things have changed positively and negatively for N.B. Power since its budget was first prepared and said J.D. Irving Ltd. is fishing only for certain things that would support its view the rate increase is exaggerated.
"Interveners don't just get to focus on one thing that they think may have gone favourably and ignore all of the negative variances that have likely occurred," said Furey.
N.B. Power estimates it will spend $166.2 million on oil to generate electricity at the Coleson Cove generating station next year, based on price estimates from last June. The utility has been ordered to provide more recent figures at its rate hearing. (Shane Fowler/CBC News)
"What does that do to the fairness of the process?"
The three-member panel hearing the rate application, including Beaulieu, Stephanie Wilson and former public intervenor Heather Black who is now an EUB member, recessed to consider the issue and emerged with a ruling in J.D. Irving Ltd.'s favour.
"Considering that the magnitude of the fuel and purchased power and their revenue requirements for this year, the board will permit the ... January update results to be provided to Mr. O'Neil," said Beaulieu.
41 Comments
Do you want NB to be in the pickle that
NS is in ??
Ontario went there but also got 'burned'.
Sounds like a piece of NB Powers financial Puzzle was removed and a "better" piece
was substituted ... after colouring it to fit.
Reply to Rosco holt
Comment history
Christine Martinez posted on Revelation at N.B. Power rate hearing triggers order for more evidence | CBC News:
""...elaborate simulations of N.B. Power's operations meant to estimate electricity supplies and cost..."
Reply to Alex Butt They would be more accurately described as "The rubber stamp club"
Reply to Pierre Sheppard
Reply to Atom Gallant
Reply to Steve Alexander
Reply to Steve Alexander
release the documents that nb power is sitting on...cause you can bet where they tried to hide this that there is a lot of information in there ..
Yup
Maybe individually, NB citizens should dissect and debate their power rates. Or is this just and option for oligarchs?
Reply to Ernesto Rafael
It's only for oligarchs has always....
Atom Gallant
Reply to Rosco holt
Plebs must learn their place.
Reply to Ernesto Rafael
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