Proposed N.B. Power rate increase hits wall of opposition during final arguments
Poverty groups, industry, municipal utilities and public intervener all express concern
Multiple parties participating in N.B. Power's summer-long rate hearing joined forces during final arguments Monday to urge the New Brunswick Energy and Utilities Board to reject the Crown corporation's full request for an average 9.25 per cent increase in electricity prices in each of two straight years.
"A financially healthy N.B. Power is good for all in New Brunswick," said Ryan Burgoyne, a lawyer representing the three municipal utilities that operate in Edmundston, Perth-Andover and Saint John.
"However, the burden of improving N.B. Power's financial health cannot fall exclusively to ratepayers."
The three civic utilities were joined by New Brunswick's public intervener Alain Chiasson, forestry company J.D. Irving Ltd. (JDI) and a pair of groups representing low-income power customers in criticizing the size of rate increases being requested.
They all called on the EUB to exercise its powers to make adjustments.
Saint
John Energy was among a number of groups including other New Brunswick
municipal utilities, J.D. Irving Ltd, anti-poverty organizations and the
public intervener in opposing N.B. Power's plan for cumulative rate
increases over two years of up to 20 per cent. (Robert Jones/CBC News)
"The threat to New Brunswick's economy and to some New Brunswick residents and businesses is existential," argued lawyer Glenn Zacher in JDI's final presentation asking the EUB not to approve the full increase.
Since June, N.B. Power has been in front of its regulator seeking approval of an average 19.4 per cent cumulative rate increase over two years, including 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 first half of those amounts took effect in April but are subject to final approval by the board following the current hearing. If the full amount is not approved, N.B. Power will be required to rebate excess amounts customers have already paid.
Energy
and Utilities Board member Christopher Stewart is presiding over a
three-person panel that has been evaluating N.B. Power's rate request. A
final decision on the application is expected this fall. (Ian Bonnell / CBC)
As of the end of August, N.B. Power estimates it will have collected $52.5 million in higher rates since the spring.
The utility has been arguing the amounts are needed to help overcome ongoing performance problems at the Point Lepreau nuclear generating station, improve its weak financial condition and prepare for expensive capital projects that are looming, including a multi-billion-dollar refurbishment of the Mactaquac dam.
In his presentation, Burgoyne acknowledged N.B. Power is not financially healthy but said raising rates significantly needs to be a last resort in fixing its problems.
"N.B. Power must minimize costs and take all other reasonable steps to improve its financial health without excessively burdening ratepayers," Burgoyne said in his presentation.
He said the municipal utilities "do not believe that the evidence in this matter supports that N.B. Power has taken these steps."
The
Point Lepreau Nuclear Generating Station has been idle since early
April. A problem with its generator is expected to keep it offline until
November. It has been adding to N.B. Power's financial troubles at an
estimated cost of $900,000 per day. (Marc Godbout/Radio-Canada)
Zacher made a similar argument on behalf of JDI, which is N.B. Power's largest private sector customer.
He claimed the utility has been the author of many of its own misfortunes, like poor performance at the Point Lepreau nuclear station, and said it should not be up to N.B. Power customers to come to the rescue.
"It is not just and reasonable that New Brunswick ratepayers continue to bear costs that do not reflect reasonable management and operation of the utility," he argued.
Public intervener Alain Chiasson questioned a number of accounting issues at the utility and what he claimed were unneeded or exaggerated expenditures planned by N.B. Power in the two-year period and said he felt there was considerable room available to the EUB to lower the request.
"The public intervener opposes the applied-for rate increases in 2024/25 and 2025/26," Chiasson argued at the beginning of his presentation.
Shelley
Petit is chair of the New Brunswick Coalition of Persons with
Disabilities. Petit was among several participants in N.B. Power's rate
hearing to ask the EUB to use its powers to soften the size of
requested increases. (Nipun Tiwari/ CBC News)
Representatives of the Saint John Human Development Council and the New Brunswick Coalition of Persons with Disabilities also weighed in, calling the proposed rate increases a serious problem for low-income customers.
Both groups have been questioning the absence of special low-income energy assistance programs available in other jurisdictions, like rate rebates, and urged the EUB to find some way to help.
"I urge the board to carefully weigh the human cost of the proposed rate increases," said the coalition's Shelley Petit.
"It is imperative to consider alternative solutions that do not place an undue burden on our most vulnerable citizens."
In its final presentation that lasted more than 90 minutes, N.B. Power lawyer John Furey argued that the utility's financial problems are well understood and said during the hearing it fully and exhaustively justified its need for the full amount it is requesting.
"N.B. Power acknowledges that historically rate increases have not been as large as requested in this proceeding," said Furey. "But N.B. Power faces a challenging business environment."
A final decision on the rate increase by the Energy and Utilities Board is expected to take several weeks.
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Landlord, N.B. Power point at each other as another multi-day power outage frustrates tenants
20-unit building in Miramichi is less than a year old
Another multi-day power outage at an apartment building in Miramichi has two tenants frustrated all over again.
For Melonie Rutland and Shannon Camilleri, the outage at 2108 Water St. is just the latest of stubborn problems to occur since the building opened at the end of 2023.
Rutland and Camilleri spoke to CBC News early this summer about accessibility complaints, cracks in the walls and ceilings of the building, and power outages.
Then, this past Saturday, "we all woke up to no power," Camilleri said.
"When are the tenants here gonna be able to live like people?"
The landlord and N.B. Power are aware of the electricity problem, although neither claims any role in its cause or persistence.
The owner of the 20-unit building partnered with Miramichi Housing Solutions, the Miramichi Transition House and the Miramichi Regional Multicultural Association.
Belleterre
Community Partners president Blair Martin says N.B. Power was on site
fixing the problem, which began early Saturday morning. But N.B. power
says the faulty equipment is not theirs. (Submitted by Blair Martin)
More than half the units are designated for rent supplements, with some of the units aimed at women and children facing domestic violence or at risk of homelessness.
The supplemented units were to be considered third-stage housing, meaning tenants could stay long term.
Blair Martin, the president of Belleterre Community Partners, which owns the building, said electricians traced the outage, which is still going on, to N.B. Power transformers and not to any equipment inside the building.
He said N.B. Power technicians were on site Monday to address the problem, and the building's electricians would be installing a new breaker.
He said he didn't have specific details on what the fix would entail, but the electricians are confident the problem they identified is what has been causing the outages.
As of 8 p.m. Monday, Blair said power had returned to the building.
N.B. Power officials were unavailable for an interview, but a spokesperson for the Crown corporation shared a different story.
Dominique Couture said in an email that N.B. Power understands how frustrating and difficult the situation is for tenants and that the utility would be supporting the building management in a resolution.
Shannon
Camilleri, shown in this file photo speaking at a Coldest Night of the
Year event, says she sits on a local board for housing and felt she had
to speak up for tenants at her Miramichi building. (Submitted by Shannon Camilleri)
But Couture said the N.B. Power team thoroughly inspected all of its equipment and determined that it was all functioning properly, with the issue likely related to equipment located behind the meter, which belongs to the building.
"We are continuing to work closely with building management to ensure that this matter is addressed," she wrote.
Martin said later in the day that the problem is complicated, and both N.B. Power and the company are working on it.
Rutland said the lights in the hallways remain on during this outage, and people were able to plug their fridges into the hallway outlets to prevent spoiling, which occurred during previous outages. But she said she still hasn't been able to cook.
And Camilleri said no food has been given to tenants during this outage, besides coffee on Saturday morning.
Camilleri said she sits on a local board for housing with other members of the community, so she would feel like a "fraud" if she didn't speak out about the situation on behalf of other tenants.
Martin said he is also frustrated and says Belleterre has spent more than $21,000 giving tenants free rent for July, money for spoiled food, and food stipends for people who left their apartments.
"We're not just sitting on our hands here and not dealing with this problem," he said.
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Fredericton power outage shutters government offices, downtown businesses
N.B. Power cites broken pole as the cause, power restored just after 4:30 p.m.
Severe damage to a utility pole in downtown Fredericton led to an outage for hundreds, but what caused the damage is not yet known.
Government offices, arts attractions and restaurants in Fredericton's downtown were forced to close Wednesday, as about 450 in the downtown south side were without power until just after 4:30 p.m.
N.B. Power spokesperson D'Arcy Lesley Walsh said the outage was caused by a broken pole on a corner of Regent and Brunswick streets.
"We are still investigating what caused the pole to break," Walsh said.
The statement from the utility did not say whether police have been involved in the investigation.
N.B. Power reported more than 400 customers in Fredericton's downtown were without power Wednesday. (Michael Heenan/CBC)
Walsh said restoration was challenging due to the severity of damage to the pole and its location.
"The pole broke off at the ground level. Since the pole was encased in brick and poured cement, crews needed to use a jackhammer to remove the portion of the pole still in the ground so they could set a new pole," Walsh said.
"Currently, the new pole is in place, and crews are working to connect the cables and get customers back online. The traffic and construction in the area has added to the complexity of the repair, and our crews are working hard to get customers restored safely."
The Fredericton Playhouse's box office was also closed Wednesday during the power outage. (CBC)
There were also three smaller outages Wednesday — one planned, affecting four customers, and two caused by "vehicle accident" affecting two customers on Killarney Road.
Around 8 a.m., the province announced one of its office buildings, Chancery Place on King Street, had lost power.
"Therefore all employees will work from home today as the latest update from NB Power shows power being restored later today," the statement said.
Spokesperson Alycia Bartlett said "no government operations have been directly impacted" by Wednesday's outage.
Businesses west of Regent Street on the downtown south side appeared to be operating as usual during the afternoon.
But east of Regent, the Beaverbrook Art Gallery and the Playhouse were forced to close for the day.
Restaurants such as Snooty Fox, Isaac's Way, the Lunar Rogue, Moco, and the Hilton Garden Inn's Pickle Jar restaurant announced delayed openings.
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