N.B. Power critic sees more reasonable approach in latest rate hike request
Robert Knecht says he still sees overly optimistic projects in utility's long-term financial forecast
A utility expert who's been critical of N.B. Power's financial forecasts says the Crown corporation appears to have adopted a more balanced approach with its latest rate request.
Robert Knecht testified Tuesday afternoon during an Energy and Utilities Board hearing in Fredericton.
The board is weighing N.B. Power's request to increase power rates by an average of 9.25 per cent this year and again next year. Its filings with the board show 4.75 per cent increases in each of the following three years.
Knecht, who lives in the United States and has previously testified before the board, was hired by the public intervener to analyze N.B. Power's proposed rate increase.
"By setting a lower increase in the [later] years, it gives itself a little more flexibility," Knecht said in response to questions from N.B. Power lawyer John Furey.
"That could be called more responsible, it could be called more conservative."
N.B. Power faces a 2029 target set by the provincial government to reduce its debt. (Shane Fowler/CBC)
Knecht said "it's no secret" he's long been critical of N.B. Power's projections as it faces a $5.4-billion debt and major spending on existing power plants.
Knecht said the proposed rates appear to balance the concerns of current ratepayers with those in the future.
Furey asked if lower rates in earlier years makes it less likely the utility can meet a 2029 debt reduction target set by the provincial government. The target calls for 80 per cent debt and 20 per cent equity in its capital structure.
"All other things being equal, reducing the rates in the early years makes achievement of the equity target even more difficult," Knecht told Furey.
His report filed with the board ahead of the hearing notes the utility has major capital spending looming, including meeting a commitment to achieve net-zero carbon emissions by 2025.
It's a target that would affect the utility's Belledune coal-fired power plant, its Coleson Cove heavy-oil plant, and Bayside natural gas plant.
Furey pointed out there is also a looming decision on the future of the Mactaquac Dam.
At the same time, Knecht's report points out N.B. Power needs to deal with demand from a growing population and perform upgrades on its transmission system.
Knecht noted the utility appears to be better at reflecting the actual performance of the Point Lepreau nuclear generating station, using historic performance data to forecast into the future.
But Knecht said he still sees problems in the utility's financial forecasts submitted as part of the rate hearing.
"While it is risky to generalize, my overall assessment of the current five-year financial forecast is that it has substantially reduced much of the undue optimism for the near term, but the longer-term outlook contains assumptions that appear to retain the historical rosiness," his written report, filed with the board, states.
Knecht's report lays out the earnings forecast in a graph, showing the uptick in future years that he describes as a hockey stick.
"The hockey stick is still there and it just keeps moving out," Knecht testified.
The board's hearing on the proposed rates is expected to continue this week.
The board previously approved an interim rate increase this year pending the outcome of the hearing.
ABOUT THE AUTHOR
I wonder if the encroaching billion dollar decommissioning cost for Lepreau are included in that debt.
Currently, China produces more electricity from wind and solar than coal while Canada produces more electricity from coal than wind and solar. NB represents 4.25% of Canada's coal; 30% of NBs electricity comes from fossil fuel, 18.6% of Canada's electricity comes from fossil fuels. Time to turn a page
Who are these "expensive for profit producers" that you allege are being protected?
You seem to like China. You do realize they are the #1 market for Canadian coal shipments? They provide the world with a whopping 31% of global CO2 emissions, and our country is at an insignificant 1.5%, so the small amount of coal used by NB Power (they are phasing out their coal usage you know) is basically irrelevant to the big picture.
While you're turning your pages, perhaps you could enlighten us also on China's real costs for electricity from wind and solar?
N.B. Power won't seek higher rate hike over most recent Point Lepreau problems
Unplanned outage has cost Crown utility $71 million and counting
New Brunswick's electric utility company says it won't immediately seek a higher rate hike in response to recent problems with its nuclear generating station that have already cost it millions.
N.B. Power won't be modifying its request to the New Brunswick Energy and Utilities Board seeking to raise its rates by a combined 19.4 per cent over two years, said N.B. Power lawyer John Furey, speaking on Monday as part of hearings on that very application.
And with no plan to amend the rate-hike request, Furey said N.B. Power will not be providing the board any further updates on the problems at the nuclear plant as part of the hearings on whether the increase should be approved.
Furey said N.B. Power's 2024-25 fiscal outlook projected "an improvement" of about $37 million, but poor hydroelectric performance this year has knocked that down by $10 million, while problems at Point Lepreau — assuming a scenario where it would have come back online in early September — knocked that outlook down by a further $51 million.
But Furey said the company's 2025-26 budget outlook also shows a $37 million improvement, leaving the company's two-year revenue projections close enough in line with the figures in its original rate hike application.
NB
Power lawyer John Furey says the utility's fiscal outlook is such that
it doesn't need to seek higher rate increases from the province's Energy
and Utilities Board. (Roger Cosman/CBC)
"So based on this September 7th date, [the problem at Point Lepreau] is not material when you look at it on a two-year basis, and of course with the rate-smoothing account, that is how N.B. Power would be requesting that the [Energy and Utilities] Board look at it," Furey said.
"The position [of N.B. Power] is that the board should not require a further update because that circumstance is close enough to the revenue requirements as filed."
Furey's comments on Monday reiterate the messaging in a letter sent by N.B. Power to the E.U.B. last Thursday.
That letter came at the same time N.B. Power issued a news release notifying that the Point Lepreau nuclear plant will remain offline until mid-November, far longer than an earlier expectation it would be back online by Sep. 7.
N.B. Power took the plant offline in April for a planned $137-million maintenance job that was to last 100 days, but discovered other problems at the generating station during that work.
Last month, N.B. Power officials said the ongoing problems would keep the plant offline until Sep. 7 and cost the utility $71 million.
No further estimates have been provided on what it will cost to keep it offline until mid-November.
More than a decade of equipment failures and disappointing performance at the nuclear plant has left N.B. Power more than $5.3 billion in debt, with multi-billion dollar capital projects on its horizon.
The New Brunswick Energy and Utilities Board is now hearing N.B. Power's request to raise rates by an average of 19.4 per cent over two years to begin fixing its financial problems. That would mean rates rise 9.25 per cent this year and another 9.25 per cent beginning next April.
Proposed increases to residential and large industrial customers are even higher, totalling 20.6 per cent over the two years.
Yea Right
Muskrat Falls has failed to produce.
N.B. Power claims that the issues at Lepreau are immaterial when factored over two years, and still wants to move forward with rate hikes. On top of that, they are declining to provide further updates.
We are witnessing a show that P.T. Barnum would be proud of. Only in this organization could someone say, with a straight face and want you to believe them, that an unexpected $71M expense is "immaterial".
From: Chris Duffie <chris.duffie@nbliberal.ca>
Date: Sat, Jul 20, 2024 at 7:44 PM
Subject: Re: Methinks Mr Outhouse will have lots to read this weekend N'esy Pas?
To: David Raymond Amos <david.raymond.amos333@gmail.com>
Higgs could reduce our taxes now if he wanted to.
N.B. Power facing $71M bill for generator troubles at idle nuclear plant
Utility rejects suggestion Lepreau spending throws 'good money after bad'
A problem in the massive electrical generator at the Point Lepreau nuclear station that has been delaying its return to service will take several more weeks to resolve and cost an expected $71 million in repairs and lost production, N.B. Power estimates.
But the actual problem with the one million horsepower generator, which was discovered nearly a month ago, hasn't been fully diagnosed yet, and the utility warned costs could climb if a fix takes longer than expected.
"You said early September is when you are estimating. Is that sort of a best case scenario?" asked J.D. Irving lawyer Glen Zacher about the Lepreau generator, during N.B. Power's rate hearing on Monday.
"Yes, that would be fair," replied Jason Nouwens, Lepreau's director of regulatory and external affairs.
Nouwens declined to say what a worst case scenario for the repair might be.
The Lepreau plant has been offline since early April for what was supposed to be a $137 million, three-month maintenance shutdown.
No work was done on the station's main generator as part of that program, and according to Nouwens there was no reason to because it was operating normally in the spring.
"We do have monitoring on the generator," said Nouwens. "Those monitoring systems did not identify that there was an issue and the generator was operating properly when we shut down."
But after sitting idle for three months, the generator showed a problem during routine testing done on all plant equipment prior to being restarted, Nouwens said, and there is no alternative but to keep Lepreau idle until the malfunction is fully diagnosed and repaired.
N.B.
Power is seeking approval to raise rates in some cases by 20 per cent
over two years to help with its ongoing financial problems. (Michael Heenan/CBC)
"It has to be remedied now," he said.
Nouwens said engineers at the plant believe they have traced the problem to what he said was a single "stator bar" in the generator but they still do not know how or why the malfunction occurred.
Currently the generator is being disassembled to retrieve and replace the defective piece and to investigate what caused it to stop working properly.
Once the engineers are satisfied they fully understand what happened, the generator will be pieced back together and the station will be restarted sometime around Sept. 7. However, that will depend on the puzzling failure being completely resolved.
The problem comes at a difficult time for the financially-battered utility.
More than a decade of equipment failures and disappointing performance at the nuclear plant has left N.B. Power more than $5.3 billion in debt, with multi-billion dollar capital projects on its horizon.
The
Bayside natural gas generating station, right, is supposed to be
undergoing an extensive maintenance outage to prepare for winter
production, but has had to keep operating to compensate for problems at
N.B. Power's nuclear plant. (Robert Jones/CBC)
N.B. Power is currently in the process of asking the New Brunswick Energy and Utilities Board to raise rates by an average of 19.4 per cent over two years to begin fixing its financial problems. That would mean rates rise 9.25 per cent this year and another 9.25 per cent beginning next April.
Proposed increases to residential and large industrial customers are even higher, totalling 20.6 per cent over the two years.
The shutdown at Lepreau is also having cascading effects throughout the utility.
Planned maintenance outages N.B. Power's thermal generating stations in Belledune and Bayside to prepare them for the winter have both had to be delayed while they compensate for Lepreau being idle for more than five months.
Energy
and Utilities Board member Christopher Stewart is presiding over a
three-person panel that is evaluating N.B. Power's request for two years
of large rate increases. (Pat Richard/CBC)
Zacher asked the utility if it has evaluated whether Lepreau's troubles outweigh its advantages or whether it is "all in" on supporting the nuclear plant, whatever the cost.
"At what point do you reach the inflection point where you consider yourself throwing good money after bad?" asked Zacher.
Utility officials said despite its problems, the nuclear plant is a net benefit.
"While we have not seen the performance that we would ideally like with the amount we have spent in the past, we still have seen benefits from the operation of Point Lepreau," said N.B. Power's Craig Church.
"When that unit is running it is producing energy at a rate that is much lower than the alternatives that we have."
ABOUT THE AUTHOR
Interesting question
This is a machine. Machines have maintenance expenses. Do we really need a blow by blow on every one?
Reply to Wilbur Ross
Reply to Wilbur Ross
OR it could be driven by a water turbine in a dam.
Too funny, teacher needs to go back to skool.
NOT !!
N.B. Power proposal to end urban, rural rates would bump service charge by 15% for some
Utility proposes to merge categories to uniform rate of $28.97
N.B. Power's proposal to do away with separate urban and rural service charge rates would mean a 15 per cent monthly increase for some customers.
That proposal was spurred by New Brunswick's local governance reform, according to N.B. Power staff appearing before the province's Energy and Utilities Board last week.
N.B. Power rate design specialist Veronique Stevenson said those within municipal boundaries before those reforms took effect in January 2023 are now paying a cheaper urban rate.
While those brought into municipal boundaries in 2023 would technically fall into that same urban category, Stevenson said those households are still paying the more expensive rural rate.
N.B.
Power has missed its profit targets in each of the last four years by a
combined $252 million. This year it has informed both the Energy and
Utilities Board and the Department of Finance that profits are running
ahead of its budget projection. (Radio-Canada)
That's because transferring those households over to the urban rate would mean a considerable revenue loss for the utility, she said.
The Crown corporation's general rate application lists the existing urban and rural rates as $24.57 and $26.96 per month, respectively. It also has a "seasonal" category, which is also charged $26.96 per month.
N.B. Power proposes to merge the categories to a uniform rate of $28.97.
But that would mean a 15.1 per cent increase to the monthly service rate, or $3.70, for about 51 per cent of customers – those who would have previously been charged under the urban category.
Randy Hatfield worries the monthly service charge increase will disproportionately impact low-income people. (CBC)
While the remaining customers in the rural and seasonal categories will take on a 4.9 per cent increase, or $1.31 per month.
"So N.B. Power's proposal is asking urban customers to bear a higher increase in order to cover a lower increase for the rural and seasonal customers, that's the implication?" Abigail Herrington, counsel for the EUB, asked the panel on Thursday.
Stevenson agreed that urban customers "will certainly see a bit of a higher rate increase" if the changes are accepted by the board.
"Because it only applies to the service charge, customers with lower energy will see a higher percentage increase on their bill," Stevenson said.
Shelley
Petit of the New Brunswick Coalition of Persons with Disabilities said
the increase will be difficult for people with disabilities to absorb,
as many are on a fixed income. (Nipun Tiwari/ CBC News)
It's a disparity that Randy Hatfield, executive director at the Human Development Council in Saint John, worries will disproportionately impact low-income customers.
"Low-income people are better off with a lower monthly flat-rate charge. As low as possible," he said. "Because they tend to be users of a smaller amount of electricity, and they have some control or agency over how much they use."
He also pointed to a report from independent consultant Robert Knecht, hired by public intervenor Alain Chiasson, which says the overall increase across categories isn't justified.
Shelley Petit, who is representing the New Brunswick Coalition of Persons with Disabilities, also worries about how the change will affect people's bills and ability to access basic needs.
N.B. Power is proposing to merge its urban, rural and seasonal monthly service charges into one category. (N.B. Power/Facebook)
"These increases are portrayed as small, just a few dollars here and few dollars there, barely the price of a coffee a day, but we do not have that luxury of going out and buying a coffee," Petit said in a statement.
"Too many persons with disabilities are already eating only what is obtained from the food banks. They are being forced to skip treatments, uncovered medications and more."
She worries ultimately those on fixed incomes will not be able to handle the proposed increases.
Asked about the utility's reasoning for putting more of the increase on urban customers, N.B. Power spokesperson Dominique Couture referred CBC News to exhibit NBP11.41.
However, exhibit NBP11.41 does not provide a rationale, but lays out the increases in each category and bill impact.
CBC News requested comment from the province's Department of Local Government on Friday but did not receive a response.
ABOUT THE AUTHOR
378 Comments
I hope Mr Outhouse has informed Higgy that I am still paying attention to this nonsense
Surprise Surprise Surprise
Reply to David Amos
Too Too Funny
Utility rejects suggestion Lepreau spending throws 'good money after bad'
Robert Jones · CBC News · Posted: Jul 22, 2024 7:20 PM ADT
Considering the huge increase that NB Power is looking for, this service charge thing is really pretty minor in the bigger scheme ( when one considers the customer impact due to a significant increase in the monthly power usage portion of the bill).
It’s strange that we’ve seen very little here on how the EUB proceedings are actually going.
David Amos
Reply to Don Corey
Amen
Dennis Woodman
Reply to Don Corey
$3 a month is a “huge “increase ?
David Amos
Content Deactivated
Reply to Dennis Woodman
Best read it again
Al Clark
Reply to Dennis Woodman
Yeah dayray is right it's actually 3.70 a month. What's that, an alpine at sobeys?
Don Corey
Reply to Wilbur Ross
Read my comment.
Any talk about making the big corporations pay for their rates like the rest of us.
Alison Jackson
Reply to Jos Allaire
Amen Brother.
Don Corey
Reply to Jos Allaire
It sure would be nice, but it won’t happen (regardless of the political stripe in power).
David Amos
Reply to Don Corey
Ditto
Dennis Woodman
Well at least they got a carve out on carbon taxes
Bill Gardiner
Reply to Dennis Woodman
You having a hard time with the 8 cents a liter?
Dennis Woodman
Reply to Bill Gardiner
It’s 17, how long we’re you asleep ?
Lynette Browne
Reply to Dennis Woodman
Not for home heating oil.
Alison Jackson
Reply to Dennis Woodman
A whole 17cents on a litre of gasoline which costs you $1.70/litre! Buy something cheaper on gas and stop blaming people trying to curb emissions.
Don Corey
Reply to Alison Jackson
That’s 10% of the gas price. It might not seem like much to you, but only because your job is to promote it. How’s that one working out?
Don Corey
Reply to Lynette Browne
That’s because of the Trudeau exemption that did nothing to improve his lowly standing in the polls.
Gordon MacFarlane
Reply to Don Corey
Beat me to it.
David Amos
Reply to Don Corey
Welcome back
serge montague
Reply to Bill Gardiner
You mean the 8 cents per litre that is going to "nudge" Canadians towards EVs? That cost should not be any financial burden for anyone and at the same time be a financial incentive to seek cheaper power ?? Yikes !
Lynette Browne
Reply to Don Corey
If you are feeling the effect of the carbon tax you have options to not use the high-emission fuels. Pretty simple, really. All about choices.
Lynette Browne
Reply to Don Corey
The temporary exemption was to help those more rural and lower income people who are/were using home heating oil to warm their houses. Nothing to do with gas prices. But, nice try.
Lynette Browne
Reply to serge montague
Yes, enough to notice, not enough to cause a financial burden. However, if anyone is complaining there are choices that can be made. Don't buy the high-emitting fuels. Choices.
serge montague
Reply to Lynette Browne
How could he feel the effects of the CT which has no significant impact on the cost of living ??
serge montague
Reply to Lynette Browne
With the vast majority being in the Lib voter rich maritime. Nice try lynette
Dennis Woodman
Reply to Lynette Browne
Yes, all you need to do is get rid of a perfectly good vehicle, and a perfectly good furnace . Go in a debt for both. Make sense ?
serge montague
Reply to Lynette Browne
Are we noticing it because it is "lowering" costs ?? And if it's not causing a financial burden how on earth is it offering financial "nudging"incentives ??
Lynette Browne
Reply to serge montague
One can feel the effects without it affecting you significantly financially. Put another way, knowing about the carbon tax can make one more aware, and thus decide to make better choices. That does not mean it is adversely affecting the pocketbook. See the difference.
serge montague
Reply to Dennis Woodman
If you care about your children, grandchildren, great grandchildren and whatever you would call them after 1000yrs it makes sense...............sigh
Dennis Woodman
Reply to Lynette Browne
Never should have been an exemption for some and not others.
serge montague
Reply to Lynette Browne
I see ...the tax is not supposed to nudge people, financially it's supposed to awareness-nudge us. makes sense.sigh
A tax has only one effect on the individual...It costs them more . What is this other "feeling" you are talking about ?
serge montague
Reply to Dennis Woodman
exemptions are allowed when courting Lib vote rich maritimes
Dennis Woodman
Reply to serge montague
So Canada NEEDSa carbon tax when vast majority of countries don’t have one ?
serge montague
Reply to Dennis Woodman
If you could explain that pretzel logic as to how a tax can be insignificant and, at the same time have enough financial clout to be people to avoid it, I could use the help, the local SMEs seem stumped by the question
serge montague
Reply to serge montague
"to be" =for
Dennis Woodman
Reply to serge montague
ItsNOT insignificant. It’s burden.
ken selluk
Reply to Alison Jackson
Who's trying to curb emissions?
ken selluk
Reply to Lynette Browne
You have no options when it comes to eating..
serge montague
Reply to Dennis Woodman
I agree. But the climate SMEs here say it's not a burden for the cost of living , but somehow is a burden for those people with ICE powered cars. They make no sense whatsoever
Don Corey
Reply to Lynette Browne
No, I have no options, other than to stay home and watch the grass grow. Most of us have things to do and see, and it takes a vehicle (which takes gas). Your sales pitch on the ineffective carbon tax just isn't working is it.
Mitch Love
Reply to serge montague
Unless the effects of the CT on the cost of living are drastically understated.
Mitch Love
Reply to Lynette Browne
Also knowing that the carbon tax is a useless tax grab makes one endlessly aware of its intended result.
Lynette Browne
Reply to Don Corey
That is of course your choice. Just a reminder, EV's = zero gas. Fossil vehicles will still be for sale until 2035, then used after that.
Mitch Love
Reply to Lynette Browne
You do have options. Do not vote the cash grabbing liberals next election. Axe the tax!
Lynette Browne
Reply to Mitch Love
Only if you choose to label it that way ;)
Mitch Love
Reply to Lynette Browne
There is no other way to label at and still be honest. Then we are talking about Prime Minister Pinocchio.
Mitch Love
Reply to Lynette Browne
Unless you live in certain, not liberal voting regions.
Don Corey
Reply to Lynette Browne
Did I make any reference to gas prices? Nope.
The exemption was strictly a political move because of the very low polling numbers in Atlantic Canada.
We all the story on this one.
Mitch Love
Reply to Alison Jackson
The carbon tax grab has absolutely nothing to do with curbing emissions, it is a cash grab, nothing more. Even people who do not drive are being hurt by the carbon tax grab.
Mitch Love
Reply to Lynette Browne
Even those who do not drive are paying for the carbon tax grab. It has raised the cost of every single consumer item, including food.
Don Corey
Reply to Dennis Woodman
True. It was done simply to improve a certain individual's polling numbers in Atlantic Canada. That was it, plain and simple.
Don Corey
Reply to serge montague
Nothing she says makes any sense.
Don Corey
Reply to Lynette Browne
Will you buy me a nice new EV, because I'm retired and on a fixed income and certainly can't come remotely close to affording one? And I'm sure not alone.
Don Corey
Reply to David Amos
Thanks; hard to avoid this one.
serge montague
Reply to Mitch Love
Not a chance... SME Lynette insists otherwise ...sigh
serge montague
Reply to Lynette Browne
"Fossil vehicles will still be for sale until 2035, then used after that." you have ZERO evidence for that !
Reply to MR Cain
Reply to MR Cain
Higgs, if you want to do something useful for the people, and try to get elected again, shake this outfit up big time. Sell it even.
Dave Renn
Reply to Allan Marven
Ontario privatized and rates went up bigtime. Alberta is a private owned disaster
Dennis Woodman
Reply to Allan Marven
NB power costs 13.9 cents per kw, Canada ave is 19.2 (2023). Ontario is 14.1, BC is 11.4 , Quebec 7.8 , Alberta 25.8 . No wonder EV sales lag in Alberta ! NW territory is 41.0
David Amos
Reply to Allan Marven
I bet Higgy laughs at that fact that the service charge and the taxes are more than the bill for the power I used last month
David Amos
Monthly Service Charge
$28.27
Charges for electricity used
On the 281 kilowatt-hours you used @ 13.47¢/kWh $37.85
Variance account amount for electricity you used $1.07
Subtotal $67.19
HST (NB Power #11924 6924) $10.08
Amount Due $77.27
PC tax-cut promise pleases business community, disappoints advocates for poor people
Premier and PC Party Leader Blaine Higgs pledged 2 percentage point reduction to HST if re-elected
An election promise by New Brunswick's premier is generating favourable reaction from the business community, while being criticized by poverty-reduction advocates.
A Progressive Conservative proposal to reduce the harmonized sales tax by two percentage points could encourage more retail spending, helping out local businesses, said Jim Cormier, Atlantic director of the Retail Council of Canada.
But reducing the province's HST to 13 per cent would do little to help New Brunswick's poorest residents afford the essentials — many of which already aren't subject to the sales tax, said Peter Jongeneelen, co-chair of ACORN New Brunswick.
"They're not going out and buying new furniture or clothing," Jongeneelen said.
"You know, even if they're buying clothing, it's second-hand. So really, the tax savings is just not … beneficial to those who need it the most."
On Thursday, Premier Blaine Higgs, speaking as leader of the Progressive Conservatives, announced his party would reduce the HST if voted back into power in an election to take place by Oct. 21.
Higgs,
speaking as leader of the Progressive Conservatives, promised Thursday
he would reduce the provincial portion of the harmonized sales tax to
eight per cent. (Shane Fowler/CBC)
Higgs promised, if elected, to reduce the tax by a percentage point as part of the 2025 budget, and by another percentage point in 2026.
Once fully implemented, the tax would cost the province $450 million in annual revenue, while saving the average family about $1,000 a year. Higgs said.
Tax cut good for business, says retail council
Cormier with the retail council said lower taxes are always good for business, particularly now, when inflationary pressures have pushed prices higher.
"As the retail sector, we rely obviously on customers coming in and wanting to spend money in our stores, so if they are paying ... a little bit less in the taxes for those retail goods that they purchase, then hopefully that will encourage them to spend more at the retail locations in their neighbourhoods," Cormier said.
Jim
Cormier, Atlantic director of the Retail Council of Canada, says
businesses would benefit from a reduction to the provincial sales tax
rate in New Brunswick. (Retail Council of Canada)
The harmonized sales tax is a federal-provincial tax created in the late 1990s. It comprises a five per cent federal portion and a 10 per cent provincial portion.
The tax applies to all goods and services sold in the province, with some exceptions, including basic groceries such as milk, bread and vegetables, feminine hygiene products, and prescription drugs.
Everyone benefits, says federation
Also praising the PC pledge was the Canadian Taxpayers Federation, which described it as a tax cut that would benefit everyone.
"I think really the number one thing to say is that this is a tax cut that will impact every New Brunswicker," said Jay Goldberg, interim Atlantic director for the federation, a non-profit organization that advocates lower taxes and greater public accountability.
"Whether you're a senior on fixed income, whether you're a teenager trying to stretch your allowance or anyone in between, this is going to be savings for everyone."
Goldberg noted the provincial tax rate had been eight per cent until it was raised to the current rate of 10 per cent by former government of Liberal Brian Gallant in 2016.
With the Higgs government's effort to reduce the provincial debt during two mandates, the province is in the right shape to offer the tax cut, he said.
"So this is really undoing a tax hike that the last Liberal government implemented," he said.
Working class, people with disabilities left out
While the HST reduction brings down spending costs for everyone, it does so disproportionately, said Jongeneelen, with ACORN.
Higgs touted how significant savings are to be had for families looking to buy a new vehicle, renovate their homes or buy new appliances.
But Jongeneelen said many of New Brunswick's low and moderate-income residents don't earn the income needed to make such purchases, with most of their money going to essentials like rent, food and electricity.
"Two per cent off the taxes really is helping the people who are in the highest tier of society, big corporations, Crown corporations, things like this," Jongeneelen said.
"You know, it does nothing for the people who are, you know, the low, moderate or even medium income that are struggling the most."
Another group of New Brunswickers who will see little of the tax cut's benefits includes people with disabilities, said Shelley Petit, chair of the New Brunswick Coalition of Persons with Disabilities.
She said the most someone on disability assistance gets from the province is $918 a month, or barely enough money for someone to live on.
Rather than reduce the HST, she said she'd like to see improvements bringing the disability benefit up to at least $1,500 per month.
"I think [the tax cut] is something to help out some of the more well-to-do in this province, who really, their biggest concern is, 'Can I take my third vacation this year?'" Petit said.
ABOUT THE AUTHOR
80 Comments
David Amos
Methinks Mr Outhouse will have lots to read this weekend N'esy Pas?
David Amos
The EUB has been considering arguments about raising NB Power rates 20 percent over 2 years and that is not worth reporting but a possible 2 percent tax reduction is???
Walter Vrbetic
Reply to David Amos
Reported almost 2 weeks ago.
David Amos
Reply to Walter Vrbetic
and what happened?
Walter Vrbetic
Reply to David Amos
Figure it out... try Google.
David Amos
Reply to Walter Vrbetic
I did
David Amos
Content Deactivated
Reply to Walter Vrbetic
I found this in Google
NB Power – Regulatory Oversight
and Integrated Resource Plan
Description and Background
The Province of New Brunswick will subject all NB Power operations to regulatory oversight and review, and require NB Power to present an Integrated Resource Plan every three years and a Financial Forecast annually to the New Brunswick Energy and Utilities Board (EUB), or as directed by the EUB.
To improve transparency and accountability, an integrated NB Power will be required to demonstrate its costs and revenues across the entire company when requesting rate changes, including rate increases of three percent or less, which are currently exempt from regulatory scrutiny. In addition, NB Power will be required to assess electrical system requirements through an Integrated Resource Plan (IRP). This process will utilize the principle of least cost procurement, economic and environmental evaluations, determine appropriate risk values for future electricity requirements and the best options to meet them. The results of this IRP process will be shared with NB Power’s customers and stakeholders by submitting the IRP to the New Brunswick Energy and Utilities Board (EUB) within one year of reintegration of the utility, and thereafter at three year intervals or more frequently if directed by the EUB. In addition to submitting the IRP, NB Power will also be required to file a 10 year strategic, financial and capital investment plan with the EUB during its first year as an integrated utility, and will provide annual financial forecasts to be used by the EUB in the rate-setting process.
David Amos
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Reply to Walter Vrbetic
Two additional items will also bring public and shareholder transparency. Beginning in 2011-12, NB Power is required to issue quarterly financial statements and the utility, as represented by the CEO and the Chairman of the Board, will be required to appear annually before the New Brunswick Legislature’s Crown Corporations Committee.
Key Objectives Served by this Action
Low and Stable Energy Prices – Requiring NB Power to appear before the EUB to defend its costs and projections across the entire organization, as opposed to only the Distribution and Transmission operations as currently required, will ensure the utility’s costs and operations are as efficient and effective as possible while adhering to government policy. In addition, a regularly updated IRP will assist NB Power and the EUB in identifying the most cost effective ways to meet our electricity requirements into the future.
Energy Security – An integrated resource plan will assist NB Power and the EUB to identify future demand trends and asset performance expectations, ensuring that we plan ahead so that there will always be enough electricity supply to meet our demand requirements. The IRP will also identify the optimal mix of domestic supply sources to ensure security of supply, as well as encourage energy efficiency and utility-based demand side management initiatives.
David Amos
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Reply to Walter Vrbetic
Reliability of the Electrical System – An integrated resource plan allows the utility to take a long view of our electric system to determine future electricity requirements and the best options to meet them. This will allow us to maintain a robust and reliable electric system for all New Brunswickers.
Environmental Responsibility – Requiring NB Power to consider and incorporate principles of environmental stewardship into its long-term planning process via the IRP will ensure that future operations and asset development continue to be carried out in an environmentally sustainable manner.
Effective Regulation – Increased scrutiny by the EUB will ensure NB Power continues to operate in the most efficient and effective manner possible.
David Amos
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Reply to Walter Vrbetic
FYI I downloaded yesterday's transcript and it was a dilly
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>
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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---------- Original message ---------
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>
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