N.B.
Power lawyer John Furey and utility president Lori Clark at an Energy
and Utilities Board hearing in 2020. Furey is asking the board to grant
an interim rate increase of 9.25 per cent on April 1 before a hearing
into the increase is held in May. (Roger Cosman/CBC)
Re: Matter 552 - NB Power 2024-2025 And Games People Play
John Furey<JohnFurey@fureylegal.com> | Sat, Mar 2, 2024 at 4:54 PM | |
| To: David Amos <david.raymond.amos333@gmail.com> | ||
I am in a hearing and away from my office until Tuesday, March 5, 2024, and will not have access to email during that time. If your matter requires immediate attention, please contact me directly at 506-444-1328. | ||
Abigail J. Herrington<Aherrington@lawsoncreamer.com> | Sat, Mar 2, 2024 at 4:54 PM | ||||||||
| To: David Amos <david.raymond.amos333@gmail.com> | |||||||||
Thank you for your email. I am out of the office in hearings from March 1 to March 5, 2024. As a result, my response to your email may be delayed.
If you require urgent assistance, please contact Sarah Knappe at 506-633-3503 or sknappe@lawsoncreamer.com.
| |||||||||
David Amos<david.raymond.amos333@gmail.com> | Sat, Mar 2, 2024 at 4:54 PM |
| To: "blaine.higgs" <blaine.higgs@gnb.ca>, "Holland, Mike (LEG)" <mike.holland@gnb.ca>, "Mitton, Megan (LEG)" <megan.mitton@gnb.ca>, "David.Coon" <David.Coon@gnb.ca>, keith.chiasson@gnb.ca, jacques.j.leblanc@gnb.ca, jean-claude.d'amours@gnb.ca, robert.mckee@gnb.ca, robert.gauvin@gnb.ca, Mark.Blakely@rcmp-grc.gc.ca, "martin.gaudet" <martin.gaudet@fredericton.ca>, premier <premier@gnb.ca>, dominic.cardy@gnb.ca, "Arseneau, Kevin (LEG)" <kevin.a.arseneau@gnb.ca>, "Ross.Wetmore" <Ross.Wetmore@gnb.ca>, "John.Williamson" <John.Williamson@parl.gc.ca>, "rob.moore" <rob.moore@parl.gc.ca>, "Bill.Oliver" <Bill.Oliver@gnb.ca>, "Trevor.Holder" <Trevor.Holder@gnb.ca>, "jeff.carr" <jeff.carr@gnb.ca>, "Daniel.J.Allain" <Daniel.J.Allain@gnb.ca>, Dorothy.Shephard@gnb.ca, "andrea.anderson-mason" <andrea.anderson-mason@gnb.ca>, susan.holt@gnb.ca, LTgov@gnb.ca, "bruce.fitch" <bruce.fitch@gnb.ca>, "Benoit.Bourque" <Benoit.Bourque@gnb.ca>, "Rene.Legacy" <Rene.Legacy@gnb.ca>, "guy.arseneault" <guy.arseneault@gnb.ca>, "chuck.chiasson" <chuck.chiasson@gnb.ca>, "Robert. Jones" <Robert.Jones@cbc.ca>, rrichard <rrichard@nb.aibn.com> | |
| Cc: "louis-philippe.gauthier@cfib.ca" <louis-philippe.gauthier@cfib.ca>, "frederic.gionet@cfib.ca" <frederic.gionet@cfib.ca>, david@ibew37.com, "david.sollows@gnb.ca" <david.sollows@gnb.ca>, mike.legere@adityabirla.com, Ron.marcolin@cme-mec.ca, executivedirector@forestnb.com, "Brandy.Gellner@libertyutilities.com" <Brandy.Gellner@libertyutilities.com>, "JohnFurey@fureylegal.com" <JohnFurey@fureylegal.com>, "Murray, Leanne" <LMurray@nbpower.com>, "Petrie, Jamie" <JPetrie@nbpower.com>, "Murphy, Darren" <DaMurphy@nbpower.com>, "Porter, George" <George.Porter@nbpower.com>, pmckay@nbpower.com, lgordon@nbpower.com, kevgibson@nbpower.com, NBP Regulatory <NBPRegulatory@nbpower.com>, NBEUB/CESPNB <General@nbeub.ca>, "Young, Dave" <Dave.Young@nbeub.ca>, "Aherrington@lawsoncreamer.com" <Aherrington@lawsoncreamer.com>, "Dickie, Michael" <Michael.Dickie@nbeub.ca>, "Mitchell, Kathleen" <Kathleen.Mitchell@nbeub.ca>, Veronique Otis <Veronique.Otis@nbeub.ca>, Susan Colwell <Susan.Colwell@nbeub.ca>, Melissa Curran <Melissa.Curran@nbeub.ca>, "Hoyt, Len" <len.hoyt@mcinnescooper.com>, "jeff.garrett@sjenergy.com" <jeff.garrett@sjenergy.com>, "shelley.wood@sjenergy.com" <shelley.wood@sjenergy.com>, "dan.dionne@perth-andover.com" <dan.dionne@perth-andover.com>, "pierreroy@edmundston.ca" <pierreroy@edmundston.ca>, ryan.mitchell@sjenergy.com, pzarnett@bdrenergy.com, "rburgoyne@coxandpalmer.com" <rburgoyne@coxandpalmer.com>, hwafaei@stikeman.com, "gzacher@stikeman.com" <gzacher@stikeman.com>, hanrahan.dion@jdirving.com, "alain.chiasson2@gnb.ca" <alain.chiasson2@gnb.ca>, randy@sjhdc.ca, dustin@emrydia.com, rdk@indecon.com, shelley@nbcpd.org | |
Saturday 2 March 2024 N.B. Power faces resistance at hearing on request for 9.25% interim rate increase | |
N.B. Power faces resistance at hearing on request for 9.25% interim rate increase
Utility questioned about how surprised it really was by a government shift in its debt target
N.B. Power's effort to win an interim rate increase of 9.25 per cent on April 1 — even though a full hearing into the request will not be held until May — ran into some resistance at an Energy and Utilities Board hearing Friday as it was being championed by its chief financial officer Darren Murphy.
"Mr. Murphy, you can appreciate that you are asking for an unprecedented rate increase on an interim basis prior to the evidence being fully tested," EUB lawyer Abigail Herrington said during an exchange with Murphy about whether an April 1 increase is reasonable.
Murphy said he did understand that but argued the utility needs to charge customers higher prices at the beginning of April to meet its financial targets and cannot wait until May, June or July for a decision from the board.
"We are seeing very exceptional circumstances that led to the situation that we're in," said Murphy.
"Otherwise we would not be sitting here asking for interim rates."
N.B.
Power chief financial officer Darren Murphy spent two hours answering
questions about the utility's request to raise rates 9.25 per cent on
April 1, even though a hearing into the amount won't happen until May. (Robert Jones/CBC)
N.B. Power applied for this year's rate increase 10 weeks past a deadline established for it by the EUB, a circumstance the utility says was caused by the provincial government, not it.
N.B. Power claims that it was preparing to submit a rate application to the board early last October as required.
It was to include an increase of more than 12 per cent, an amount that would have become public right around the time Premier Blaine Higgs said he was seriously considering calling a fall election.
However, just days before the EUB application deadline, the New Brunswick government moved debt reduction targets the utility has to meet from 2027 to 2029.
That allowed N.B. Power to reduce the size of the rate increase it would need this coming year, but the utility said it required a reworking of corporate budgets so completely that it forced a delay in the application for new rates until Dec. 15 — 10 weeks late.
N.B.
Power says if granted an interim rate increase of 9.25 per cent on
April 1 it will refund any money it over collects should it later be
found to be too much. (Michael Heenan/CBC)
That pushed the utility's rate hearing from February to May and a likely decision on what to award from the board from late March to late June.
N.B. Power contends its financial troubles require it to begin collecting higher rates at the beginning of its fiscal year on April 1, and it has promised to rebate customers any excess amount it collects in April, May and June if a full rate hearing eventually decides a 9.25 per cent increase is too high.
"It is essential we have those rate increases in place April 1 and not delay that for two or three or four months," said Murphy, who has estimated the utility will lose more than $30 million if an increase is delayed until July 1.
"We will ensure that customer bills are adjusted for whatever final decisions are rendered. Customers will not be harmed."
But Herrington and public intervenor Alain Chiasson both raised questions about how much of a surprise the provincial government's decision to move the debt target really was.
Murphy acknowledged that moving the debt target was N.B. Power's idea and had been first suggested to government in the spring of 2023 as a way to help lower a 2024 rate increase. But he told Chiasson the utility did not know for sure that would happen until it received formal notice from the province.
Energy
and Utilities Board lawyer Abigail Herrington (right) at N.B. Power's
2023 rate hearing. At a hearing Friday, Herrington pressed N.B. Power
about how much of a surprise it was to the utility when the provincial
government moved its debt targets and delayed its rate increase
application. (Jonathan Collicott/CBC)
But Herrington dug deeper on that point and questioned the claim that N.B. Power was unprepared for the government's last-minute decision to extend the debt target since it was proposed as an option by the utility months earlier.
"Is it fair to say that N.B. Power would have been aware of the possibility of that extension as early as that date it originally proposed it," asked Herrington.
"We had no indication as to whether that was something the government would think was reasonable or not," said Murphy.
A decision from the EUB on whether to allow an interim increase of 9.25 per cent will come quickly.
If awarded, it will be added to an unrelated four per cent rate increase that is already scheduled for April 1.
That money is being charged to recover costs accumulated in previous years from unexpected events, most notably a mid-winter breakdown of the Point Lepreau nuclear generating station from December 2022.
ABOUT THE AUTHOR
https://davidraymondamos3.
Monday 5 February 2024
Games People Play
Re: Matter 552 - NB Power 2024-2025 And Games People Play
On 2/16/24, David Amos <david.raymond.amos333@gmail.
> ---------- Original message ----------
> From: John Furey <JohnFurey@fureylegal.com>
> Date: Thu, 15 Feb 2024 20:31:03 +0000
> Subject: Automatic reply: RE Matter 552 - NB Power 2024-2025 Its
> obvious Holland's minions in NB Power are pulling a fast one within
> the EUB before Higgy has a writ dopped an Mikey is out a job
> To: David Amos <david.raymond.amos333@gmail.
>
> I am away from my office until Tuesday, February 20, 2024, and have
> limited access to email. If your matter requires immediate attention,
> please contact me directly at 506-444-1328.
>
>
> https://davidraymondamos3.
>
> Monday 5 February 2024
>
> Games People Play
>
> https://www.cbc.ca/news/
>
> Delayed N.B. Power rate request promoted as a government achievement by PC
> Party
> Premier Blaine Higgs personally credited with thwarting increase
> despite ordering utility to shape up
>
> Robert Jones · CBC News · Posted: Feb 08, 2024 6:00 AM AST
>
>
> A man with grey hair and glasses addresses microphones in a hallyway.
> New Brunswick Premier Blaine Higgs is being credited with his party
> for thwarting part of a 9.25 per cent rate increase request by N.B.
> Power, even though the utility was following instructions it got from
> Higgs. (Jacques Poitras/CBC)
>
> New Brunswick's Progressive Conservative Party is applauding the
> possibility N.B. Power may not be able to raise electricity rates as
> planned on April 1 even though that may cost the utility $32.6 million
> in revenue it needs to reach financial targets set for it by the
> Progressive Conservative government.
>
> "Who would you rather see get the $32.6M? N.B. Power? Or N.B.
> Families?" the PC party posted on its social media platforms Tuesday
> about the potential for a delayed rate increase.
>
> N.B. Power has applied for a 9.25 per cent increase that it says it
> needs to begin on April 1, but a hearing by the New Brunswick Energy
> and Utilities Board into that request isn't scheduled to start until
> mid-May because it was submitted more than 10 weeks late.
>
> That, N.B. Power fears, could push a decision on new rates from the
> EUB out until July 1, which its lawyer John Furey has said the utility
> cannot afford.
>
> "Even in the most optimistic scenario in which the board is able to
> render a partial decision which enables the implementation of rates by
> July 1, 2024, N.B. Power will sustain a negative net impact of $32.636
> million," Furey wrote in a submission to the EUB last week.
>
> A facebook post In posts on X and Facebook, New
> Brunswick's PC Party said Premier Blaine Higgs 'helped save
> ratepayers"' by causing N.B. Power to file its rate increase request
> 72 days late. (PCNB / Facebook)
>
> N.B. Power was operating under a directive from the EUB to file for
> new rates by Oct. 4 to allow for the submission of evidence for and
> against the proposal, a full hearing on that collected evidence and a
> decision, prior to April 1.
>
> However, on Sept. 25, nine days before that October filing deadline,
> Premier Blaine Higgs signed a cabinet order extending debt targets
> N.B. Power has to meet by two years, from March 2027 to March 2029.
>
> That significantly lowered the amount of money the utility would need
> for immediate debt reduction in the coming year and it upended five
> months of budgeting at N.B. Power which then had to be reconstructed.
>
> Eventually the rate request was filed on Dec. 15, 72 days late.
>
> "The entire GRA (general rate application) filing package, which was
> largely complete as of September 27, 2023, when the directive was
> received, must be updated and/or revised to reflect that directive,"
> N.B. Power's chief financial officer Darren Murphy said in an
> affidavit explaining the delay to the board.
>
> In its social media posts Tuesday the PC party credited Premier Blaine
> Higgs personally for causing the delay in N.B. Power's application and
> putting its April 1 increase in jeopardy.
>
> A tweet Prominent PC candidate Faytene Grasseschi told followers that
> the Higgs government 'chose families' when it slowed down N.B. Power's
> application for new rates. (Faytene Grasseschi/ X)
>
> Premier Blaine Higgs "and the PCNB Government helped save ratepayers
> from at least some of N.B. Power's massive planned hike," it wrote.
>
> Prominent PC candidate in the riding of Hampton-Fundy-St. Martins
> Faytene Grasseschi amplified the post on her own platforms and
> suggested that forcing a delay in N.B. Power's application had been
> done by the premier and cabinet on purpose.
>
> "The provincial (PCNB) government chose families," wrote Grasseschi.
>
> However, the "massive planned hike" the PC party says Higgs interfered
> with flows from instructions given to N.B. Power by Higgs in the first
> place.
>
> In its 300-page rate application, N.B. Power states it needs to
> generate more than $1 billion in profit over the next five years to
> meet financial targets it was given in the premier's Sept. 25
> directive and that starts with a 9.25 per cent rate increase on April
> 1 and a second 9.25 per cent increase the following April.
>
> "The Executive Council of the Government of New Brunswick directs N.B.
> Power to make plans to achieve a capital structure of at least 20 per
> cent equity by 2029," states the application.
>
> A man wearing a suit standing in front of a brown building Natural
> Resources and Energy Development Minister Mike Holland has expressed
> concerns for several years about N.B. Power's financial condition and
> has argued for less government interference in its affairs. (Jacques
> Poitras/CBC)
>
> "The requested [9.25 per cent] increases form the starting point for
> achieving 20 per cent equity by March 31, 2029."
>
> The Higgs government has insisted for several years N.B. Power needs
> to improve its financial condition by reducing its high debt levels, a
> position also taken by New Brunswick's last two auditors general.
>
> Originally in December, Energy Minister Mike Holland said he wasn't
> happy to see the large increase N.B. Power was asking for but said he
> supported it taking action to get its finances in order.
>
> "Nobody wants to see something like that, but it is a part of the
> process of the utility properly putting together a rate increase
> request," said Holland.
>
> On Wednesday Holland's office did not return messages asking about the
> PC Party posts crediting the government with slowing down N.B. Power's
> application.
>
> Doug Williams, executive director of the New Brunswick PC Party said
> the post was made to counterbalance a CBC article on the issue
> published last Monday that presented the delayed rate increase only as
> a problem for N.B. Power, not a benefit to utility customers.
>
> A building with NB Power written on it N.B. Power says it needs to
> turn more than $1 billion in profit over five years to meet 2029
> financial targets set for it by the Higgs government, starting with a
> 9.25 per cent increase this April. (Michael Heenan/CBC)
>
> "The CBC article only chose to focus on "revenue loss" for N.B.
> Power," wrote Williams in an email.
>
> "PCNB wanted to provide balance to the discussion by highlighting that
> changing the debt reduction dates for N.B. Power equals more money in
> the pocket of New Brunswickers."
>
> N.B. Power has applied to the EUB for a special interim rate increase
> to take effect on April 1 that it says it can refund to customers in
> whole or in part if the May hearing does not support what it has asked
> for.
>
> A similar request in 2016 was rejected by the board.
>
> N.B. Power claims without an interim increase it will suffer $32.6
> million in lost revenue in April, May and June that it cannot afford
> to give up.
>
> About half of that would be revenue from residential customers and
> half from commercial and industrial customers.
>
> The EUB will hear arguments on that application March 1.
> ABOUT THE AUTHOR
>
> Robert Jones
>
> Reporter
>
> Robert Jones has been a reporter and producer with CBC New Brunswick
> since 1990. His investigative reports on petroleum pricing in New
> Brunswick won several regional and national awards and led to the
> adoption of price regulation in 2006.
> CBC's Journalistic Standards and Practices
>
>
>
>
> 139 Comments
>
>
>
> David Amos
> Why is it I am humming the old Joe South tune from my youth "Games
> People Play"???
>
>
> David Amos
> Does anyone recall NB Power suing the EUB last year???
>
>
>
> David Amos
> Surprise Surprise Surprise
>
>
> David Amos
> Content Deactivated
> Go Figure
>
> New Brunswick Power Corporation
>
> APPLICATION FOR INTERIM RATES
>
> NOTICE
>
> New Brunswick Power Corporation has filed a Notice of Motion with the
>
> New Brunswick Energy and Utilities Board seeking an interim order as
>
> follows:
>
> 1. Approving the schedule of rates for the 2024/25 fiscal year as set
>
> out in Exhibit NBP 02.07 in Matter 552 which reflects differential
>
> rates and an average 9.25 per cent increase to all customer classes,
>
> effective from April 1, 2024 until further Order of the Board;
>
> 2. Directing NB Power to make billing adjustments for customers in the
>
> event that final rates approved by the Board are different than rates
>
> approved in the Interim Order, and further directing NB Power to keep
>
> appropriate records to permit such adjustments;
>
> 3. Directions respecting the hearing of this Motion; and
>
> 4. Such further Orders and Directions as the Board may deem appropriate.
>
> NB Power’s Notice of Motion and the supporting affidavit may be viewed
>
> on the Board’s website at www.nbeub.ca under Matter No. 552.
>
> As per Rule 4.3 of the Rules of Procedure, any party to this matter
>
> who wishes to respond to the Motion must file and serve on all other
>
> parties, a written response outlining the party’s position and the
>
> grounds for same along with a specific indication of any evidence upon
>
> which the party seeks to present or rely no later than Thursday,
>
> February 8th at 4:00 p.m. (Atlantic Time).
>
> David Amos
> Content Deactivated
> Reply to David Amos
> NB Power is to file with the Board, and serve on all other parties,
>
> its written argument in support of its motion, including copies of any
>
> authorities upon which it intends to rely no later than Thursday,
>
> February 15th at 4:00 p.m. (Atlantic Time).
>
> Parties who have filed a written response to the Motion are to file
>
> their written argument outlining their position in response to the
>
> Motion, including copies of any authorities upon which they intend to
>
> rely no later than Thursday, February 22nd at 4:00 p.m. (Atlantic
>
> Time).
>
> The Board will hold an in-person hearing on the Motion for Interim
>
> Rates on Friday, March 1, 2024, beginning at 9:30 a.m. (Atlantic
>
> Time). The location will be confirmed by the Board shortly.
>
> New Brunswick Energy and Utilities Board
>
> P.O. Box 5001
>
> Suite 1400, 15 Market Square
>
> Saint John, NB E2L 4Y9
>
> Telephone: (506) 658-2504
>
> Toll Free 1-866-766-2782
>
> Fax: (506) 643-7300
>
> E-Mail: general@nbeub.
>
> David Amos
> Reply to David Amos
> As per Rule 4.3 of the Rules of Procedure, any party to this matter
>
> who wishes to respond to the Motion must file and serve on all other
>
> parties, a written response outlining the party’s position and the
>
> grounds for same along with a specific indication of any evidence upon
>
> which the party seeks to present or rely no later than Thursday,
>
> February 8th at 4:00 p.m. (Atlantic Time).
>
>
>
>
> https://www.youtube.com/watch?
>
>
> Joe South - Games People Play (1969)
>
> https://www.youtube.com/watch?
>
>
> Minister of Natural Resources and Energy Mike Holland rants of leaving
> politics with Blogger!
> Charles Leblanc
>
>
>
> ---------- Original message ----------
> From: "Holland, Mike Hon. (ERD/DER)" <Mike.Holland@gnb.ca>
> Date: Thu, 9 Apr 2020 19:33:51 +0000
> Subject: Automatic reply: Yo Mikey Holland and Johnny Green Does your
> buddy Chucky Leblanc have the balls to ask Roger Brown about my 1965
> Harley and the Yankee Wiretaps tapes in its saddlebag?
> To: David Amos <david.raymond.amos333@gmail.
>
> Thank you for your email. Your thoughts, comments and input are
> greatly valued. You can be assured that all emails and letters are
> carefully read, reviewed and taken into consideration.
>
> If your issue is Constituency related, please contact Cheryl Layton at
> my constituency office in Albert at (506) 856-4961 or
> Cheryl.Layton@gnb.ca.
>
> Thanks again for your email!
> Mike Holland
> Minister
> MLA, Albert
>
> ------------------------------
>
> Merci pour votre courriel. Nous vous sommes très reconnaissants de
> nous avoir fait part de vos idées, commentaires et observations. Nous
> tenons à vous assurer que nous lisons attentivement et prenons en
> considération tous les courriels et lettres que nous recevons.
>
> Si votre courriel est lié à un enjeu de circonscription, veuillez
> contacter Cheryl Layton à mon bureau de circonscription dans Albert au
> (506) 856-4961 ou Cheryl.Layton@gnb.ca.
>
> Merci encore pour votre courriel!
> Mike Holland
> Ministre
> Député, Albert
>
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