Friday 31 March 2023

Minister says N.B. Power will need to justify VP salary if Ontario company runs Lepreau

 

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.

A man in a suit speaking into a microphone 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.

A nuclear plant in the distance with water and waves in the foreground 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.

A man wearing a suit standing outside 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.

A women in a suit looks off to the side. 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


Jacques Poitras

Provincial Affairs reporter

Jacques Poitras has been CBC's provincial affairs reporter in New Brunswick since 2000. He grew up in Moncton and covered Parliament in Ottawa for the New Brunswick Telegraph-Journal. He has reported on every New Brunswick election since 1995 and won awards from the Radio Television Digital News Association, the National Newspaper Awards and Amnesty International. He is also the author of five non-fiction books about New Brunswick politics and history.

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60 Comments
 
 
 

Methinks the EUB Hearing of the 529 Matter in Fat Fred City beginning this June is gonna be interesting N'esy Pas?  
 
 
 
Welcome back to the circus 

Methinks the EUB Hearing in Fat Fred City this June is gonna be quite a hoot 
 
 
 
 
 
 
Rosco holt
Then the minister will need to justify his salary to the people of the province.  
 
 

Reply to Rosco holt
Good Idea
 
 
 
 
 
 
 
 
roland gallant
Decommission Pointe Lepreau, and buy directly from Hydro Quebec just like North Eastern American States do. Or are NB'ers against buying "Canadian" because it would be from a French Province, so they'd rather pay more to a Ontario Company?   
 
 


Reply to roland gallant 
I have been saying that for years but there is a wicked game being played and its not for our benefit  
 
 
Lou Bell
 
Reply to roland gallant 
 
 
roland gallant
Reply to Lou Bell
and Ontario can be trusted? 
 
 
Don Corey 
Reply to roland gallant    
That's pure speculation; there is nothing confirmed here one way or another.

And where did you come up with the ridiculous assumption that NB'ers are against buying from Hydro Quebec?

 
roland gallant
Reply to Don Corey 
 
 
roland gallant
Reply to Don Corey
wikipedia dot org Proposed sale of NB Power 
 
 
Don Corey 
Reply to roland gallant   
Whoa there? It's one thing to buy some of our power from Quebec Hydro.

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.

 
Andrew Gilmour 
Reply to Don Corey
Found what out? 
 
 
roland gallant
Reply to Don Corey
@Don Corey, now we are getting somewhere...answer me this now...but first reread my original comment....now wouldn't it be to NB'ers financial advantage to decommission Lepreau as soon as possible and replace it by simply buying Quebec Hydro instead of selling it or leasing it to some Ontario company? 
 
 
Don Corey 
Reply to Andrew Gilmour 
That the majority of NB'ers did not want to sell NB Power to Quebec Hydro. Are you not familiar with the history here? 
 
 
Don Corey 
Reply to roland gallant
I've read your comment, and it made no reference to the sale of NB Power, unlike the link you then posted. Your last question is a good one, but I don't have the answer because there are too many questions that go with it; related to both Lepreau and Quebec Hydro. 
 
 
roland gallant
Reply to Don Corey
Let me help with some of those unanswered questions, the Anglo's in this Province would rather pay more to an Ontario Crown corporation and sink more money into Lepreau, which is a proven money loser, instead of buying cheap Quebec Hydro. It's that simple. 
 
 
Don Corey 
Reply to roland gallant 
I don't know why you're trying to push the language card here. The questions I would need answered are not in your post. 
 
 
Ernesto Rafael 
Reply to roland gallant  
Newfoulander's Churchill Falls contract with Hydro Quebec comes to an end in 2041 and it can't come fast enough. Hydro Quebec can't be trusted. 
 
 
Donald LeBlanc
Reply to roland gallant  
Does Ontario already have American run/owned Nuclear Plants? What is Ontario’s track record of performance and efficiency? 
 
 
Sam Smithers
Reply to Don Corey 
It always seems to be about language with them, that is why they have created the divide we currently have, dual everything and a massive amount of wasted money. 
 
 
roland gallant
Reply to Don Corey 
listen this isn't complicated, buying Hydro from Quebec is way cheaper and carbon friendly and would actually allow NB'ers to save money, but instead they are floating the idea of pumping even more money to an Ontario Company that will just exacerbate the losing venture which is pointe Lepreau instead of decommissioning it. But, keep stalling, until you can find a way to justify not buying Hydro Quebec. 

Reply to roland gallant
Hmmm Even Madame Bell went "Poof"? 
Reply to Don Corey
Quebec backed away from the deal not Graham

Reply to roland gallant
Nay not so 
 
 
 
 
 
 
 
Jacques Allard 
Ils trouverons pas de raison. Meme avec un deficite, il recoit quand meme ses bonis....essayer de justifer ça!! Pourquoi arreter la, $200k, $100k de salaire , essaiyer de justifier ça!! ILS pourrons pas!

Reply to Jacques Allard   
"They won't find a reason. Even with a deficit, he still receives his bonuses....trying to justify that!! Why stop there, $200k, $100k salary, try to justify that!! THEY can't!"

C'est Vrai

 
Pat Holland 
Reply to David Amos
Where do you see the bonuses they get? There are performance bonuses for the work crews not the executives 
 
 
Christine Martinez 
Reply to Pat Holland 

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-1.777804 
 
 
 
 
 
 
 
Alison Jackson 
Oh fearless duck Hunter Mikey

Reply to Alison Jackson 
Sitting ducks maybe 
 
 
 
 
 
James Johnstone 
Michael Holland, the minister responsible for nuclear power plants in New Brunswick. I wonder why we are in such a mess in this province. 
 
 
Ben Haroldson
Reply to James Johnstone 
Fit right in at nb power.

Reply to Ben Haroldson
True
 
 
Lou Bell
Reply to James Johnstone  
That mess was created long before Mike holland was an MLA , but you wouldn't understand that . 

Reply to Lou Bell
  
Even a busted clock is correct twice a day EH? 
 
 
 
 
 
 
 
Christine Martinez 
It appears that in New Brunswick, , "Vice President Nuclear" commands a salary of a whopping $910,000. Meanwhile, in Ontario, "Vice President Nuclear" of anything (there are several types) have an average salary of $358,591, with the highest salary being $509,132. This is publicly available info from Ontario's sunshine list.

One has to ask...how?...why??? Seems to me we're getting fleeced on NB Power's hugely exorbitant salaries.

 

Reply to Christine Martinez 
Oh My My 


Donald LeBlanc 
Reply to Christine Martinez 
Perhaps he was brought here to set up this deal? Have to question US involvement in the deal it would seem?
 
 

 
Reply to Donald LeBlanc 
He has been on the payroll for quite some time I suspect this a PWC plan  
 
 
 
 
 
 
 
 
Clive Gibbons 
Why doesn't this person need to justify their salary now?


Reply to Clive Gibbons 
Ask Mikey 
 
 
 
Reply to Clive Gibbons  
Go Figure  
 
 
 
 
 
 
 
 
Chuck Michaels 
NB Power has a hard time justifying a GREAT DEAL of what goes in their organization. Let us just rip the band aid off, NATIONALIZE it and rebuild from the weeds up....
 
 
G. Timothy Walton 
Reply to Chuck Michaels 
Nationalise a provincial utility?
 
Reply to G. Timothy Walton 
Ditto 


Chuck Michaels
Reply to G. Timothy Walton  
So to speak... more accurately "provincialize", I guess... There is precedent in NB (and NS) in which government took control and ownership of ambulance services from private operators. Granted, in true government fashion, they immediately contracted Medavie Blue Cross to manage the day-to-day operations of the newly-acquired entities... 


G. Timothy Walton 
Reply to Chuck Michaels  
And Bernard Lord was able to continue his tradition of service to the New Brunswick taxpayer.

Usually such service in the private sector involves safewords.

 
 
 
 
 
 
Margaret Flowers 
Me thinks “help me understand why everybody that's in their positions are justified and earning their keep?” should be a question raised and acted upon daily of the entire organization.
 
Reply to Margaret Flowers 
Methinks you enjoy the circus as much as I N'esy Pas?  
 
 
 
 
 
 
Theo Lavigne  
I can kick my own behind for becoming a trades person instead of a nuclear engineer....
 
 
Samual Johnston 
Reply to Theo Lavigne  
There is still time…
 
 
Theo Lavigne  
Reply to Samual Johnston 
No: I'm over the hill, to late 


Reply to Theo Lavigne  
Its not Rocket Science get yourself elected and you could be the Boss like Mikey is 
 
Reply to Theo Lavigne 
Run for public office and become a boss 
 
 
 
 
 
 
 
Jack Straw  
Does Mike now understand that lumber prices went up and royalties never increased to account for that? Remember he was not aware of that. Hard to believe we have a Minister who would not be aware of that fact. You can see why we are in the mess we are in. Asking him to resign would be pointless as he would not understand what that means.  
 
 
Marcel Belanger 
Reply to Jack Straw  
Funny 👍😂 


Reply to Jack Straw 
Mikey is a Straw Man he don't know nothing because his head is a bowl of stuffing Hence he just says what Higgy tells him to  
 
 
 
Reply to Marcel Belanger
Mikey is a Straw Man too 

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