From: Abigail J. Herrington <Aherrington@lawsoncreamer.com>
Date: Mon, Jun 24, 2024 at 9:01 PM
Subject: Automatic reply: Court of Appeal File No. 68-23-CA - Judicial Review of Board Decision in Matter 541
To: David Amos <david.raymond.amos333@gmail.com>
Large price hikes requested by N.B. Power to get long-delayed review
Utility wants approval to raise rates an average of 19.4 per cent, spread over 2 years
A long-delayed hearing into two large rate increases sought by N.B. Power is scheduled to begin in Fredericton today, although for months the utility has been charging customers some of the higher prices that will be under review.
The New Brunswick Energy and Utilities Board is expected to hear evidence sporadically over 16 days starting this week and ending in late August to determine whether N.B. Power should be allowed to raise its electricity rates by nearly 20 per cent over two years.
The utility says it needs the money to slow growth in its $5.4 billion debt load as it begins spending billions more on major infrastructure projects, including a refurbishment of the prematurely aging Mactaquac hydro electric dam outside Fredericton.
Highlighting the gravity of the request, N.B. Power president Lori Clark will appear at the hearing for a second straight year to personally give evidence about the need for higher rates, something previous chief executives at the utility have rarely done.
"The cost of delivering electricity has risen significantly," Clark says in an opening statement that has already been filed with the EUB and is expected to be delivered today.
N.B.
Power CEO Lori Clark, shown here at an appearance at the legislature,
intends to personally appear at the utility's rate hearing to testify
about the need for higher prices. (Jacques Poitras/CBC)
"We need to raise rates to allow us, as a cost-of-service utility, to cover our costs and that is reflected in our application. We understand that nobody likes to see rates going up, and we know this is a difficult time for our customers as they are already facing cost pressures on their everyday needs from gas to groceries."
Because of delays in scheduling the rate hearing, mostly caused by the New Brunswick government, N.B. Power was given permission by the EUB to raise its base rates for this year on April 1 by an average of 9.25 per cent, including 9.8 per cent on residential and large industrial customers.
The hearing will investigate whether that increase was justified. It will also determine whether a second average increase of 9.25 per cent, including another 9.8 per cent increase on residential and large industrial customers scheduled for April 2025, is warranted.
By the time the hearing concludes in late August, N.B. Power will have collected an estimated $52 million in additional revenue from customers from the higher rates awarded in April.
The utility will be required to refund a portion of that if the EUB eventually decides the full increase is too high.
A
decision by Premier Blaine Higgs not to fill vacancies on the Energy
and Utilities Board for several months left it unable to hold hearings
on N.B. Power's rate increase in May. Earlier, a surprise government
decision to alter N.B. Power's debt targets scuttled a February hearing.
(Radio-Canada)
"The Board directs NB Power to make billing adjustments for customers in the event that final rates approved by the Board are different than the rates approved in the interim Order," the EUB wrote in its decision to allow increased rates to take effect in April before the hearing into whether they are reasonable.
Last year following a hearing, the EUB approved only two-thirds of an 8.9 per cent rate increase requested by the utility.
N.B. Power's application is the first seeking approval for rates that cover more than one year.
New rules allow that option.
The utility has filed more than 400 exhibits in support of its application and answered several hundred written questions submitted in advance of the hearing by other interested parties.
Those include the industrial forest company J.D. Irving Ltd., the province's three municipal utilities, the community group Human Development Council, public intervener Alain Chiasson and the EUB itself.
N.B.
Power is planning to spend $70 million on the Mactaquac Dam
refurbishment project this year, $295 million next year and billions
more in future years. The utility says higher rates will help keep its
debt from ballooning because of it. (Shane Fowler/CBC)
Originally meant to be held in February the hearing has been unexpectedly delayed twice.
Last fall, just days before N.B. Power was supposed to file its application for new rates, the New Brunswick government changed its mind on debt targets the utility should meet.
That caused a 72-day delay in the application being submitted as the utility calculated the impact of that change on its budgets.
That forced the hearing to move from February to May, but it had to be cancelled again after a car accident involving the EUB's acting chair, Stephanie Wilson.
Legislation requires a three-person panel to conduct a hearing, and at the time the EUB was down to only three members following delays by the province in filling board vacancies. Wilson's absences made it impossible to proceed.
ABOUT THE AUTHOR
"Speaking to reporters following question period Friday New Brunswick Premier Blaine Higgs acknowledged his government has been delaying appointing members to EUB on purpose"
Why is it I am not surprised that Higgy appointed a former Irving coworker to the board in less than two weeks?
But the fact that it’s now in excess of $5 Billion is close to criminal, but that’s another story.
The debt will not magically disappear, and we NB’ers will be paying the piper in the way of considerably higher rates.
It would be a much less bitter pill to swallow if:
- legislation is in place to prevent any provincial government involvement in the NB Power business operation
- current NB Power senior management is totally replaced by knowledgeable, competent, business driven individuals focused on running a profitable operation that treats NB ratepayers the way they should be treated (as the customer!!)
and has a specific mandate with respect to debt targets; and NO political interference to get there
- no “special treatment” on rates to any businesses or other organizations
It might be a bitter pill to swallow (more so for some) but the time has come to stop putting this “disaster” on the back burner because of politics and poor management.
If we don’t make changes, the same story won’t look much different in 5-10 years from now, except that rates will be a LOT higher (guaranteed!),
Reply to Dan Flanagan
Unexpected surge in N.B. Power revenues draws attention at rate hearing
Utility questioned about whether rate hikes are too high, given unbudgeted windfall
Evidence that N.B. Power may be having a better financial year than expected when it first proposed imposing a pair of large rate increases on customers has participants at its ongoing rate hearing asking whether that offers an opportunity to reduce the amounts.
But the utility is pushing back against that idea, arguing it should be allowed to keep any surge in income over and above what it originally budgeted for.
"We're not recommending any updates to the evidence as a result of changes since the filing," N.B. Power's chief financial officer Darren Murphy told public intervener Alain Chiasson on Tuesday, about the possibility amounts being earned on electricity sales may be better than expected.
If the windfall is to be considered, Murphy has argued, N.B. Power should be allowed to keep the money to shore up its finances, or at least have unbudgeted expenses recalculated to balance out the new revenues.
"If the board decides that updates are required, then we propose it be done in a more comprehensive way," he said.
N.B. Power has applied to raise rates by an average of 9.25 per cent per year over the next two years, including 9.8 per cent on residential and industrial customers.
N.B.
Power's chief financial officer Darren Murphy (left) told the utility's
rate hearing the company should be allowed to keep unbudgeted revenues
that have turned up rather than reduce its rate increases. (Pat Richard/CBC)
However, updated modelling done by N.B. Power, after it submitted its rate application in December, showed margins it is likely to earn on electricity sales have improved by $36.7 million this year and $37.7 million next year.
Multiple parties at the utility's ongoing rate hearings have been asking about those amounts, suggesting they are significant enough to reduce the size of rate increases N.B. Power needs.
"So $37 million a year equates to something over two per cent," noted J.D. Irving lawyer Glenn Zacher about the unbudgeted revenue.
"So that would be a two-per-cent credit against what would otherwise be a 9.25 per cent increase."
Murphy acknowledged that amount of money could potentially be used to reduce a rate increase, but argued against it.
"That is not what we are recommending, but the math is right," said Murphy.
Public
intervener Alain Chiasson is one of at least three participants at N.B.
Power's rate hearing that asked about unexpected revenues the utility
is projected to earn this year and next. (Radio-Canada)
Pressed further on the issue by Ryan Burgoyne, a lawyer for New Brunswick's municipal utilities, Murphy said it is N.B. Power's preference that it be allowed to keep the first $40 million in any unbudgeted revenue that appears.
The utility is already planning for $64 million in net earnings this coming year but Murphy said it would like the number to be allowed to go substantially higher before it is made to divert any new money to reducing its rate increase.
"And just so I understand, that would mean N.B. Power would be looking for net earnings of $100 million to $104 million?" asked Burgoyne.
"That is correct," said Murphy.
N.B. Power has also made the point that unexpected expenses have arisen and if new revenues are going to affect its rate increase, then new costs also should be recalculated.
Trees
pushed into power lines by high winds on Dec. 18, 2023, caused outages
to more than 120,000 N.B. Power customers and had crews working eight
days to fully repair. Costs exceeded $19 million and will add to N.B.
Power's storm-expense budgets for several years, costs that were not
foreseen in its current rate application. (Submitted by N.B. Power)
As an example, the utility pointed to a major winter storm that caused $19.3 million in damage just before Christmas and days after it had already submitted its rate increase request for the next two years.
The utility budgets for storm damage based on multi-year rolling averages and so future costs will be affected by that storm.
Under questioning by Chiasson, Murphy said it is only fair that if unexpected revenues are going to affect N.B. Power's request for higher rates, then so should any surprise increases in its costs.
ABOUT THE AUTHOR
After all he did work in every province and he did go to school in every province, so he is the smartest thing that ever came from PEI
From: Glenn Zacher <GZacher@stikeman.com>
Date: Mon, Jun 24, 2024 at 8:39 PM
Subject: Automatic reply: Court of Appeal File No. 68-23-CA - Judicial Review of Board Decision in Matter 541
To: David Amos <david.raymond.amos333@gmail.com>
I am away at an out of town hearing until Friday, June 28, 2024 and may be delayed in responding. If your matter is urgent, please contact my assistant Sofia at scasinha@stikeman.com or 416 869 6703. Thank you
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From: David Amos <david.raymond.amos333@gmail.com>
Date: Mon, Jun 24, 2024 at 8:59 PM
Subject: Fwd: Court of Appeal File No. 68-23-CA - Judicial Review of Board Decision in Matter 541
To: <jdoughart@gmail.com>, Mitchell, Kathleen <Kathleen.Mitchell@nbeub.ca>, Aherrington@lawsoncreamer.com <Aherrington@lawsoncreamer.com>, Melissa Curran <Melissa.Curran@nbeub.ca>, Young, Dave <Dave.Young@nbeub.ca>, Dickie, Michael <Michael.Dickie@nbeub.ca>, Veronique Otis <Veronique.Otis@nbeub.ca>, Colwell, Susan <Susan.Colwell@nbeub.ca>, Chiasson, Alain (OAG/CPG) <Alain.Chiasson2@gnb.ca>, Hoyt, Len <len.hoyt@mcinnescooper.com>, rburgoyne@coxandpalmer.com <rburgoyne@coxandpalmer.com>, louis-philippe.gauthier@cfib.ca <louis-philippe.gauthier@cfib.ca>, frederic.gionet@cfib.ca <frederic.gionet@cfib.ca>, Sollows, David (ERD/DER) <david.sollows@gnb.ca>, Brandy Gellner <Brandy.Gellner@libertyutilities.com>, Volpé, Gilles <Gilles.volpe@libertyutilities.com>, Lavigne, David <dave.lavigne@libertyutilities.com>, Gordon, Laura <LGordon@nbpower.com>, Waycott, Stephen <SWaycott@nbpower.com>
Cc: Clark, Lori <lclark@nbpower.com>
From: David Amos <david.raymond.amos333@gmail.
Date: Mon, Jun 24, 2024 at 8:29 PM
Subject: Fwd: Court of Appeal File No. 68-23-CA - Judicial Review of Board Decision in Matter 541
To: Susan.Holt <Susan.Holt@gnb.ca>, robert.mckee <robert.mckee@gnb.ca>, hugh.flemming <hugh.flemming@gnb.ca>, <Steve.Outhouse@gnb.ca>, blaine.higgs <blaine.higgs@gnb.ca>, Ross.Wetmore <Ross.Wetmore@gnb.ca>, rob.moore <rob.moore@parl.gc.ca>, John.Williamson <John.Williamson@parl.gc.ca>, jake.stewart <jake.stewart@parl.gc.ca>, andrea.anderson-mason <andrea.anderson-mason@gnb.ca>
Cc: Robert. Jones <Robert.Jones@cbc.ca>, John Furey <JohnFurey@fureylegal.com>, Glenn Zacher (gzacher@stikeman.com) <gzacher@stikeman.com>
N.B. Power executives deny exaggerating nuclear troubles to justify large rate hike
Utility faces pointed questions from about whether its expenses are inflated
N.B.
Power president Lori Clark and chief financial officer Darren Murphy
exit the utility's rate hearing during a break. The two executives said
estimates of expected poor performance at the Point Lepreau nuclear
station this year and next year are realistic given its recent history. (Pat Richard/CBC)N.B. Power executives faced pointed questions early at a New Brunswick Energy and Utilities Board hearing that is reviewing plans to raise electricity rates 20 per cent over the next two years, nearly half of which is already being collected from customers.
N.B. Power president Lori Clark and chief financial officer Darren Murphy both denied a suggestion from the forestry company J.D. Irving Ltd., barely an hour into the 16-day hearing, that the utility is exaggerating how poor performance at the Point Lepreau nuclear generating station is likely to be this year, and next year, to justify raising rates more than necessary.
"The performance metrics that N.B. Power is forecasting for Point Lepreau are not in fact improvements. It's a forecast of worse performance," said Glenn Zacher, a Toronto-based energy lawyer representing JDI at the hearing.
Zacher noted that N.B. Power figures show Lepreau suffered breakdowns averaging just over 19 days per year over a five-year period, ending in 2022.
Point
Lepreau has operated below expectations since emerging from a 4½-year
refurbishment in 2012. Estimates by N.B. Power that performance at the
plant will worsen this year and next are being challenged at its rate
hearing. (Shane Fowler/CBC)
That was third worst among 38 peer reactors, and Zacher wanted to know why N.B. Power is now budgeting for 29 days of breakdowns at Lepreau, per year, over the next few years.
That "no doubt puts the station dead last" among all of its peers, said Zacher. He suggested that, combined with additional downtime being set aside for planned maintenance outages, inflates the plant's likely costs and exaggerates the utility's expenses by more than $20 million, both this year and next.
With more optimistic Lepreau budgeting, he suggested that rate increases as high as 9.8 per cent per year over the next two years facing some customers might have been between one and two percentage points lower.
"You're taking a straight historical average of admittedly bad performance and using that to forecast future performance," said Zacher.
Toronto
lawyer Glenn Zacher has been hired by J.D. Irving Ltd. to represent it
at N.B. Power's rate hearing. He asked a series of pointed questions
about whether N.B. Power has been inflating expected costs related to
the Point Lepreau nuclear generating station this year and next year. (Stikeman Elliott LLP)
Murphy said the higher estimate for lost production at Lepreau is no budgeting gimmick but an attempt to be more realistic about the plant's near-term prospects, given its performance to date.
"Although these are increases in forecasted costs, they are actually representative of historical actual costs," said Murphy.
"That's what we've attempted to do in this application — better match up what our experience has been in the last number of years with expected performance over the next few years."
Clark told Zacher that non-nuclear equipment at Lepreau, some of it more than 40 years old, was not upgraded at the time the reactor was refurbished and has been causing most of the problems.
Energy
and Utilities Board member Christopher Stewart is presiding over the
N.B. Power rate hearing. It is expected to last 16 days spread out over
the next two months. (Pat Richard/CBC)
She said there are plans underway to improve Lepreau's performance in relation to its peers but that will take time and money before it shows itself.
"What we're dealing with now is aging equipment in the station," said Clark.
"Significant investment is required in Lepreau."
N.B. Power has applied to raise its rates an average of 9.25 per cent this year and next year, including a pair of 9.8 per cent increases on residential and large industrial customers.
J.D.
Irving Ltd. is N.B. Power's largest private-sector customer. It is
fighting a request by the utility to raise rates an average of 9.25 per
cent this year and next year, including 9.8 per cent on residential and
large industrial customers. (Robert Jones/CBC)
N.B. Power was given permission by the utilities board to begin charging the first increase on April 1 but will have to rebate a portion of what it has collected, if the amount is found to be too high.
Hearings are expected to take 16 sitting days but are spread over the next two months.
ABOUT THE AUTHOR
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.
ALL NB and Canadian sawmills benefited from the high prices.
From: David Amos <david.raymond.amos333@gmail.
Date: Fri, Jul 7, 2023 at 11:34 AM
Subject: Fwd: Court of Appeal File No. 68-23-CA - Judicial Review of Board Decision in Matter 541
To: Ross.Wetmore <Ross.Wetmore@gnb.ca>, rob.moore <rob.moore@parl.gc.ca>, John.Williamson <John.Williamson@parl.gc.ca>, jake.stewart <jake.stewart@parl.gc.ca>, andrea.anderson-mason <andrea.anderson-mason@gnb.ca>
Cc: Robert. Jones <Robert.Jones@cbc.ca>
---------- Forwarded message ----------
From: John Furey <JohnFurey@fureylegal.com>
Date: Wed, 5 Jul 2023 16:03:36 +0000
Subject: Court of Appeal File No. 68-23-CA - Judicial Review of Board
Decision in Matter 541
To: "Mitchell, Kathleen" <Kathleen.Mitchell@nbeub.ca>,
"Aherrington@lawsoncreamer.com
Melissa Curran <Melissa.Curran@nbeub.ca>, "Young, Dave"
<Dave.Young@nbeub.ca>, "Michael.Dickie@nbeub.ca"
<Michael.Dickie@nbeub.ca>, Veronique Otis <Veronique.Otis@nbeub.ca>,
"Colwell, Susan" <Susan.Colwell@nbeub.ca>, "Chiasson, Alain (OAG/CPG)"
<Alain.Chiasson2@gnb.ca>, "Hoyt, Len" <len.hoyt@mcinnescooper.com>,
"Glenn Zacher (gzacher@stikeman.com)" <GZacher@stikeman.com>,
"rburgoyne@coxandpalmer.com" <rburgoyne@coxandpalmer.com>,
"louis-philippe.gauthier@cfib.
"frederic.gionet@cfib.ca" <frederic.gionet@cfib.ca>,
"David.Raymond.Amos333@gmail.
"daly@nbnet.nb.ca" <daly@nbnet.nb.ca>, "david.sollows@gnb.ca"
<david.sollows@gnb.ca>, "Brandy.Gellner@
<Brandy.Gellner@
"Gilles.volpe@
<Gilles.volpe@
"dave.lavigne@
<dave.lavigne@
Cc: "Waycott, Stephen" <SWaycott@nbpower.com>, "Gordon, Laura"
<LGordon@nbpower.com>
Dear Ms. Mitchell, Counsel and Registered Parties,
Please find attached the following documentation:
1. Court Stamped copy of a Notice of Application dated July 4, 2023
(issued by the Registrar of the Court of Appeal on July 5, 2023);
2. Court Stamped copy of the Affidavit of Darren Murphy dated July 4, 2023;
3. Copy of correspondence dated July 5, 2023 from the Deputy
Registrar of the Court of Appeal confirming the hearing date of
October 19, 2023 and the dates for filing of further documentation;
and
4. An Acknowledgement of Receipt (in both Word and pdf format).
I am providing this documentation to the Board, Board staff, counsel
for those parties who had retained counsel, and those parties who have
not previously retained counsel. I recognise that counsel for J.D.
Irving Ltd. And Utilities Municipal have changed since the hearing of
this matter, and will reach out to those counsel directly.
May I ask that each registered party execute and return to me the
Acknowledgement of Receipt that has been enclosed. The form has been
adapted to permit execution by counsel, an authorized representative,
or the party themselves where they are individuals who have intervened
without counsel.
NB Power has not automatically added Registered Interveners in Matter
541 as parties to this Application. The practice in these matters is
not to do so, and to require such interested persons to apply to the
Court of Appeal for status as an intervener in this proceeding. NB
Power will not object to any such motion for status which is brought
to the Court.
If you have any questions, please do not hesitate to reach out to me.
Regards,
John
John G. Furey
Barrister & Solicitor
John G. Furey Professional Corporation
265 Berkley Drive
New Maryland, NB
E3C 1B9
Email: JohnFurey@fureylegal.com<
Phone: 506-444-1328
Fax: 506-300-2076
A
Halifax Regional Police badge is pictured. The force has been ordered
to pay a fine and apologize after a human rights board ruled two of its
officers racially profiled a Black man. (Dave Laughlin/CBC)
Gyasi
Symonds was accused of jaywalking across Gottingen Street twice at this
location — between the Nook and his workplace across the street — in
January 2017. — Photo: Google Streetview 
A
ruling from the Supreme Court of Nova Scotia dated earlier this month
dismissed an application for judicial review of a Nova Scotia Police
Review Board decision on alleged racial profiling. (Anjuli Patil/CBC)
Cadieux has been suspended with pay in accordance with the Nova Scotia Police Act, Halifax Regional Police said. (Robert Short/CBC)
Supt. Jim Perrin is the officer in charge of the criminal investigation division. (Dave Laughlin/CBC)
Dave Moore's information was not passed on to Assoun's defence team. (Dave Moore/Twitter)
"NB Power has forecast a variety of costs that are not supported as being just and reasonable."
Madsen is an accountant and former Alberta utility executive who now heads Emrydia Consulting Corporation.
He was hired by New Brunswick public intervener Alain Chiasson to review NB Power's rate application.