N.B.
Power CEO Lori Clark will appear before the legislature's public
accounts committee next month
N.B. Power sees 'no issues' with bills so far, but can't explain anomalies
MLAs disappointed that audit promised this week won’t be ready until April
N.B. Power says it doesn't see any flaws with its smart-meter program and billing system, but is acknowledging it still can't explain anecdotal evidence of unusually high electricity consumption in some residential bills.
CEO Lori Clark told a committee of the legislature that early indications from an audit still underway are that the fault does not lie with the new units.
"No issues have been identified," she said.
When ratepayers started complaining about shockingly high December power bills, Clark said it was likely caused by a combination of a colder month than December 2024, a longer billing period and the utility's recent rate increase.
No issues found in preliminary power bill probe, but questions remainBut Clark wasn't able to explain how a family in Green Leader David Coon's riding of Fredericton Lincoln had a bill showing a 45 per cent increase in their electricity consumption compared to a year earlier.
"Their conclusion is that they simply aren't consuming the amount of power that N.B. Power says they are," Coon said.
"That's exactly why we need to do more work," Clark responded.
"I can't give a broad-brush answer. … Those are the things that we actually need to dive into deeper, to understand exactly what is happening with our customers."
MLAs from all three parties told Clark they were disappointed that the audit, ordered in January, wasn't ready in time for this week's meeting as promised.
"We are very disappointed to learn that we can't ask questions based on the audit," said Moncton East Liberal MLA Alexandre Cedric Doucet.
"New Brunswickers need answers."
'We
are very disappointed to learn that we can’t ask questions based on the
audit,' Moncton East Liberal MLA Alexandre Cedric Doucet said. (Jacques Poitras/CBC)
N.B. Power's board chair wrote to Energy Minister René Legacy Tuesday to say the audit wouldn't be finished in time.
Clark explained to the committee that so far, the audit has only looked at 20 of the utility's new smart meters and 20 of its older meters.
While the process has found no problems with the equipment, it's too small a sample for definitive conclusions, Clark said.
Opposition Progressive Conservative Leader Glen Savoie said the committee should have been told sooner than Tuesday.
"I think it would have engendered that sort of trust and confidence that I'm talking about here."
Opposition
Progressive Conservative Leader Glen Savoie suggested slashing costs as
the only alternative to further rate increases. (Jacques Poitras/CBC News)
N.B. Power has promised to have the audit finished by April and to return to the committee then to answer questions about it.
MLAs also probed other N.B. Power issues, including the utility's $5 billion debt.
Savoie said even with rate increases equal to around 13 per cent this year, the Crown corporation is making no progress toward lowering that debt.
He suggested slashing costs as the only alternative to further rate increases, but Clark pushed back.
MLAs also asked about other N.B. Power issues, including the utility’s $5 billion debt. (Silas Brown/CBC News)
"The challenges that the utility has with debt today, we cannot cut our way out of," she said.
Reducing spending would compromise N.B. Power's ability to operate its system, conduct maintenance and trim vegetation — all essential to remaining a reliable source of electricity for customers, she said.
Darren Murphy, the utility's chief financial officer, said those challenges will become steeper in the coming years with a need to raise capital spending from around $450 million to $500 million a year to about $1 billion.
That includes a 15-year refurbishment of the Mactaquac hydroelectric dam at a cost now pegged at $7 billion to $8.9 billion.
Clark also said N.B. Power is now "unsure" whether ARC Clean Energy's small modular nuclear reactor — originally expected to be ready by 2030 — will be available by "the late 2030s."
She later told reporters there are "some current challenges with the technical work being done on the technology."
Last year a former ARC CEO told CBC News that problems at the company suggested N.B. Power should be looking at other alternatives for new nuclear generation — a move Clark suggested Tuesday the company is preparing for.
"We're hoping there is a pathway for ARC to be successful," she said of the company, which has ambitions to develop a made-in-New-Brunswick reactor that could be piloted at Point Lepreau to supply N.B. Power with non-emitting energy.
"We will continue to
work with ARC. They are looking for investors now, and we will continue
to work with them, but we also have to have a Plan B in the event ARC
isn't ready."
ABOUT THE AUTHOR
https://www.cbc.ca/news/canada/prince-edward-island/pei-maritime-electric-high-bills-1.7467962
P.E.I. man refuses to pay his power bill until Maritime Electric can explain why it's so high
'You can't manage with electric bills like this,' says Brackley resident
Many P.E.I. residents have taken to social media in recent weeks to raise questions about what they consider inexplicably high power bills from Maritime Electric.
Brackley resident Kirk Harnish has been facing the threat of Maritime Electric turning his power off because he hasn't paid his bill for the past two months. He's convinced it's not accurate.
"The last little while, they're getting just a little bit beyond. You can't manage with electric bills like this," he said.
"My bills were probably maximum around $300 a year ago and now they're $400, $600 and more."
Harnish
says his power bills for December and January were $200 to $300 more
than he expected, and nearly double what they were a year ago. (Steve Bruce/CBC)
Harnish said his power-using habits have stayed exactly the same over the past year, and he heats his home entirely with wood. Yet his bills for December and January were $200 to $300 more than he expected — and nearly double what they were during those months one year ago.
Harnish called Maritime Electric to question whether there's a problem with the meter that records his electricity usage, but he hasn't gotten any answers.
After his interview with CBC News, Harnish said Maritime Electric did show up at his house and installed a second meter to compare its readings with his existing one. He's now waiting on the results.
The utility has not disconnected Harnish's power at this point.
"All I want is some satisfaction to see what's going on here, why my light bill is so high," he said. "I don't mind paying the bill if you know it's true, or you can get some satisfaction if you know something is going wrong."
Dozens of other Islanders have raised similar concerns on social media this winter, as well as through emails to CBC News.
Meanwhile, people in Nova Scotia and New Brunswick are also complaining about their high power bills. The New Brunswick government has actually asked NB Power to conduct an independent audit after widespread complaints from customers.
'How can people afford this?'
Donna Glass lives in Morell, but moves to British Columbia during the winter months.
Each winter, she turns her electric heat way down in her P.E.I. home while she is gone. This year, Glass said, she unplugged even more appliances than in years past.
Many Islanders questioning why this winter's power is costing hundreds of dollars more each month"I have less things plugged in, and I know it's been a little bit colder in P.E.I. for the month of January, but I'm still just in shock that it's $552," Glass said.
"If you're paying a mortgage and other bills, how can people afford this?"
IRAC says power rates have jumped 2.5 per cent since December 2023. (CBC)
The Island Regulatory and Appeals Commission, which approves the prices Maritime Electric charges to customers, said power rates have increased 2.5 per cent between December 2023 and now.
Glass said that still doesn't explain why the electricity usage shown on her bill jumped 60 per cent.
She wants to have an energy audit conducted on her Morell home, adding that she is thinking about selling the house if her bill continues to go up.
"I'm over 65 so I'm thinking of downsizing anyway. But I thought I might just sell my home and let somebody else deal with this problem," Glass said. "I'm thinking, if it's this high in an empty home, what would the bill be if I was home?"
A colder winter?
Maritime Electric didn't make anyone available for an interview with CBC News, but a spokesperson said in an email that the utility's not getting any more calls than usual about strangely high bills and usage. The utility suggested the issue may just be that this winter has been colder than the last one.
December 2024 was indeed about three degrees colder overall, while January was one degree colder.
Rob
Hoadley, a Fredericton-based mechanical engineer and heating
specialist, says even heat pumps can cause hikes in power bills when the
weather is too cold. (Zoom)
Rob Hoadley, a mechanical engineer and heating specialist in Fredericton, N.B., said those seemingly small temperature changes could have a big effect on someone's bill, even if they're using more energy-efficient sources like heat pumps.
"It makes a difference, especially when we get those very cold, –20, –25 nights. If in a given month we have more and more and more of those nights, you're really going to notice that on your bill," Hoadley said.
"Heat pumps love temperatures above –20. They function fantastically. But there will come a point where your heat pump can't produce heat effectively anymore."
The coldest part of the year doesn't really make a difference to me because I'm heating with wood.
— Kirk Harnish
Harnish isn't satisfied with the colder-weather explanation for his big bills, given he doesn't heat with electricity.
"That's the excuse that I get from Maritime Electric. They always say, 'Well, we're living in the coldest part of the year,'" he said.
"The coldest part of the year doesn't really make a difference to me because I'm heating with wood and my lifestyle's not really changing in the house."
Harnish
heats his home exclusively with wood, so he doesn't understand how his
electrical usage has gone up over the winter months. (Steve Bruce/CBC)
Islanders who have questions about their bill are encouraged to reach out to Maritime Electric. If you're still not satisfied, you can file a complaint with the Island Regulatory and Appeals Commission.
The commission said in an email that it has not noticed an increase in customer complaints concerning high power bills recently.
ABOUT THE AUTHOR
524 Comments
Bob Leeson
That's odd for the guy heating with wood in particular. We have 2 EVs and a heat pump here in Eastern Ontario, and I've never seen a monthly bill exceeding $500 in the coldest month. And it's much colder here in Renfrew County than it is anywhere in PEI. Plus my wife commute 180km/day with her EV.
If what the guy is saying is true, it could very well be a meter malfunction. I would start complaining the the regulator if the electrical provider is unwilling to test it. Err... PEI does have a utility regulator to complain to, right?
From: Moore, Rob - M.P. <Rob.Moore@parl.gc.ca>
Date: Thu, Feb 20, 2025 at 2:32 PM
Subject: Automatic reply: WOW The N.B. Power Board of Directors is still pretending that KPMG is ethical
To: David Amos <david.raymond.amos333@gmail.com>
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---------- Original message ---------
Date: Thu, Feb 20, 2025 at 2:31 PM
Subject: Automatic reply: WOW The N.B. Power Board of Directors is still pretending that KPMG is ethical
To: David Amos <david.raymond.amos333@gmail.com>
(A message in English will follow)
Bonjour,
Je vous remercie d’avoir écrit.
Bien que mon bureau reçoive un volume considérable de correspondance, en tant que députée, j’apprécie tous les commentaires, positifs ou négatifs, sur les questions d’actualité et mon équipe et moi-même suivons attentivement ce qui est dans l’esprit de mes électeurs.
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Par conséquent, si vous ne l’avez pas déjà fait, nous vous prions d’inclure votre adresse personnelle, votre code postal et votre numéro de téléphone dans les courriels, car cela nous aide à mieux répondre aux messages ou aux demandes de renseignements qui nécessitent un suivi.
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While our office receives a tremendous volume of correspondence, as a Member of Parliament, I appreciate all feedback, positive or negative, on the issues of the day and my team and I carefully track what is on the minds of my constituents.
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From: President of the Treasury Board/Présidente du Conseil du Trésor <president-presidente@tbs-sct.gc.ca>
Date: Thu, Feb 20, 2025 at 3:02 PM
Subject: Automatic reply: WOW The N.B. Power Board of Directors is still pretending that KPMG is ethical
To: David Amos <david.raymond.amos333@gmail.com>
Thank you for writing to the Honourable Ginette Petitpas Taylor, President of the Treasury Board. We confirm that your email has been received and will be reviewed.
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From: Minister of Finance / Ministre des Finances <minister-ministre@fin.gc.ca>
Date: Thu, Feb 20, 2025 at 1:49 PM
Subject: Automatic reply: WOW The N.B. Power Board of Directors is still pretending that KPMG is ethical
To: David Amos <david.raymond.amos333@gmail.com>
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From: Ministerial Correspondence Unit - Justice Canada <mcu@justice.gc.ca>
Date: Thu, Feb 20, 2025 at 1:50 PM
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---------- Original message ---------
From: David Amos <david.raymond.amos333@gmail.com>
Date: Thu, Feb 20, 2025 at 1:48 PM
Subject: WOW The N.B. Power Board of Directors is still pretending that KPMG is ethical
To:
Tammy.Scott-Wallace <Tammy.Scott-Wallace@gnb.ca>,
<AlexandreCedric.Doucet@gnb.ca>, <Sam.Johnston@gnb.ca>,
jacques.j.leblanc <Jacques.J.Leblanc@gnb.ca>, Marco.LeBlanc
<Marco.LeBlanc@gnb.ca>, <Ian.Lee@gnb.ca>, Eric.Mallet
<Eric.Mallet@gnb.ca>, Mitton, Megan (LEG)
<Megan.Mitton@gnb.ca>, <Luc.Robichaud@gnb.ca>,
<Natacha.Vautour@gnb.ca>, <Rob.Weir@gnb.ca>
Cc: Clark,
Lori <lclark@nbpower.com>, John Furey
<JohnFurey@fureylegal.com>, Rene.Legacy
<Rene.Legacy@gnb.ca>, David.Coon <David.Coon@gnb.ca>,
Robert. Jones <Robert.Jones@cbc.ca>, Diane.Lebouthillier
<Diane.Lebouthillier@parl.gc.ca>, pierre.poilievre
<pierre.poilievre@parl.gc.ca>, fin.minfinance-financemin.fin
<fin.minfinance-financemin.fin@canada.ca>, Susan.Holt
<Susan.Holt@gnb.ca>, <jennifer.sweet@cbc.ca>,
John.Williamson <John.Williamson@parl.gc.ca>, rob.moore
<rob.moore@parl.gc.ca>, <JOHN.HERRON@gnb.ca>,
<Don.Monahan@gnb.ca>, Bill.Oliver <Bill.Oliver@gnb.ca>,
Wayne.Long <Wayne.Long@parl.gc.ca>, Ginette.PetitpasTaylor
<Ginette.PetitpasTaylor@parl.gc.ca>, Glen.Savoie
<Glen.Savoie@gnb.ca>, <eric.beaulieu@gnb.ca>, mcu
<mcu@justice.gc.ca>
In an emailed reply to CBC News on Friday, N.B. Power said its board of directors had asked the accounting firm KPMG to conduct the audit requested by the government, "with a view to identifying the root cause(s) of the increases."
KPMG will observe testing of some old-style power meters as well as some smart meters and will review "a sampling" of high bill complaints received by N.B. Power customer service agents, said utility spokesperson Dominique Couture.
It wouldn't be possible to review all of the complaints within the allotted timeframe, she said.
Big jump in power bills may be explained when N.B. Power boss appears before MLAs
Online, N.B. Power lists things customers themselves might have done to drive up energy costs
N.B. Power customers who saw large increases on their last bills may find out why when the head of the Crown corporation appears before MLAs later this month.
The legislature's public accounts committee has posted notice of a meeting Feb. 27 to review an assessment of residential operations, as well as its latest annual report and part of a December report by the auditor general.
N.B. Power president and CEO Lori Clark is scheduled to appear.
The provincial government, the only shareholder in the utility, asked N.B. Power on Jan. 21 to conduct an independent audit after widespread complaints from customers about increases in their power consumption and bills that seemed inexplicably high.
Amanda Nelson is one of the customers convinced something went wrong.
According to N.B. Power, her 1,500-square-foot, split-level home used more than 6,055 kWh of electricity over a 38-day billing period ending Jan. 30.
The house has two heat pumps and three electric heaters, she said, but is primarily heated by two wood stoves.
"I work from home, so I can keep the fire going all day."
Looking back two years, Nelson said, her next highest usage was 3,754 kWh over 33 days ending March 27, 2022.
"We have done nothing to warrant a spike like this," she said.
Nelson said that after a long conversation with an N.B. Power customer service agent she was told her old power meter, which was swapped out in December, had a serial number similar to others that were being investigated.
"Whatever the issue it needs to be resolved, and then they have to credit anybody that they've already billed," she said.
There was evidence at a previous Energy and Utilities Board hearing that some old meters could be underreporting consumption by up to 20 per cent as they aged.
Some have wondered if having their power meter swapped out for a smart meter had an effect on the increased bills. (Silas Brown/CBC News)
If that's part of the issue, Nelson said, more should have been done to brace customers for the impact.
Denis Nowlan of Dieppe said he also had an aberration in his power bill after a smart meter was installed at his home in November.
Nowlan said the bill he received that month showed a huge spike in daily consumption for the first 12 days of the billing period, when he was still on the old meter.
Average use was 148 kWh per day, three to four times higher than any other period in November during the previous three years, he said. His highest consuming month in the previous three years was March 2022 at 96 kWh a day.
"This cannot be explained by 'consumption changes,'" Nowlan said. "There is no logical explanation for this."
Nowlan is an electrical engineer with about 18 years of experience designing electrical systems for buildings. He works for the federal government looking after buildings for public works.
He thinks "somebody probably messed up."
He wonders if the technician who replaced the meter forgot to take a reading before removing it or wrote down an incorrect value. Or maybe the first 12 days of the billing period reflect a correction after a number of previous bills based on estimated consumption, he said.
If the latter is the case, he wonders if he was billed in November for electricity he used much earlier — when the rate was lower.
Nowlan said after he contacted N.B. Power, the utility acknowledged something went wrong with his billing and "froze" his account until it could be further investigated.
U.S.-based energy consultant Doug Bowman defended smart meters and said they don't typically lead to higher bills.
They read power consumption, just like the old ones, he said, but allow easier collection of that data.
Smart meters are becoming the new industry standard, said Bowman, projected to be installed in 93 per cent of households in Canada and the United States within the next two years.
He considers them better than the old meters in many ways.
For example, the utility is notified immediately when there's an outage and can respond sooner, he said.
Bowman also considers it an advantage that smart meters allow for billing at different rates during periods of high and low demand, which is more in line with the costs of generating that electricity.
"That enables the customer to get a measure of control over their bills," he said. "They can respond to those rates using more of their consumption in the off-peak — when prices are lower."
In an emailed reply to CBC News on Friday, N.B. Power said its board of directors had asked the accounting firm KPMG to conduct the audit requested by the government, "with a view to identifying the root cause(s) of the increases."
KPMG will observe testing of some old-style power meters as well as some smart meters and will review "a sampling" of high bill complaints received by N.B. Power customer service agents, said utility spokesperson Dominique Couture.
It wouldn't be possible to review all of the complaints within the allotted timeframe, she said.
Online, N.B. Power has posted an appliance energy calculator, a list of factors that could increase energy use and some "high bill mysteries" that were solved:
-
Mini-split heat pumps that were set on "auto" switching back and forth between heat and air conditioning.
-
Mismanagement of in-floor heating.
-
A well pump stuck "on."
-
Frequent adjusting of thermostats.
Some customers should probably expect to find out that their "giant" bills are totally accurate, said Rob Hoadley, a Fredericton-based mechanical engineer who designs plumbing, HVAC and mechanical systems for commercial and health-care buildings.
Even if a homeowner didn't change behaviour, it took 17 to 20 per cent more electricity to keep a house warm in December 2024 than it did in December 2023, he said.
"It just got cold. And that meant that you consumed a lot of electricity."
When it drops from zero to minus 20 outside, you need twice as much energy to keep the inside of your house a comfortable temperature, Hoadley said.
Combined with increased rates and a higher number of billing days, the math works out, he said.
"All of that adds up to a big shock when you open up your bill."
ABOUT THE AUTHOR
Audit ordered after soaring N.B. Power bills anger thousands of customers
Minister asks for findings from 3rd-party review to be ready for public accounts committee in a month
N.B. Power will undergo an independent audit after thousands of customer complaints about December power bills, which for many were hundreds of dollars higher than expected.
Announcing the audit Tuesday afternoon, Energy Minister René Legacy told reporters he had asked N.B. Power to have the findings ready for public accounts by Feb. 18.
The date of N.B. Power's appearance at public accounts is not yet confirmed and will be set by the committee.
Premier Susan Holt said the government had been working for a week to understand why increases of $200 to $500 — or up to 1,500 kilowatt hours — had shown up on power bills.
"We've been listening to New Brunswickers and we share your concerns about expensive power bills," Holt told reporters.
"We heard from a large volume of New Brunswickers … with really significant spikes in power bills that were unexpected, that didn't go to trend and we want to get to the bottom of this."
External review coming as N.B. Power customers question sudden spike in billsShe said her caucus met with N.B. Power representatives on Jan. 20 to get a better understanding of the issue, but "that conversation left us with more questions."
Legacy said he had meetings with the N.B. Power board over the last 10 days, and the utility has agreed to an independent review.
Energy
Minister René Legacy said he wants the findings about the power bill
spike to be ready in time for a legislature committee's meeting on Feb.
21. (Isabelle Leger/CBC News )
"They also share the concern that if there are any significant concerns from New Brunswickers, whether their system is compromised, that is an issue for them too, so they want to get to the bottom of it," Legacy said.
Holt said the Liberal government isn't ruling anything out now, but this could simply have been a "perfect storm of pain for New Brunswickers."
Earlier in the day, Lori Clark, the president and CEO of the Crown corporation, said system audits suggested a change in consumption by N.B, Power's customers was the cause.
She said December was the first cold month since rates increased by 9.8 per cent last spring. December was also on average three degrees colder than the December before, and the billing cycle for some customers was as long as 33 days, she said.
A one-time debit of $11 was added for some customers last month, to comply with the Energy and Utilities Board's order to keep distinct service charges for rural and urban customers.
When asked if she would consider a freeze on power rates, Holt said her focus is figuring out what happened in this situation first.
"Right now we need to get to the bottom of this issue, because if there's an issue here that we can learn from it's something that we have to address urgently," she said.
Clarifications
- A previous version of this story stated that the audit findings would be made available for a meeting on Feb. 21. The date of the public accounts committee meeting is not yet confirmed and will be decided by the committee.Jan 21, 2025 8:37 PM AST
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---------- Original message ----------
From: pierre.poilievre.a1@parl.gc.ca
Date: Thu, 2 Aug 2018 19:18:56 +0000
Subject: Automatic reply: ATTN Michael Snaauw I called you and a lot
of your pals today
To: motomaniac333@gmail.com
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If this is an urgent matter, please call 613-992-2772 or email
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Manjit
---------- Original message ----------
From: "Barry, Clare" <Clare.Barry@justice.gc.ca>
Date: Thu, 2 Aug 2018 19:17:31 +0000
Subject: Automatic reply: ATTN Michael Snaauw I called you and a lot
of your pals today
To: David Amos <motomaniac333@gmail.com>
Je serai absente du bureau le 3 aout 2018. Dans mon absence, veuillez
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In my absence, kindly contact Ginette Mazerolle or Sam Boorman of the
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From: Newsroom <newsroom@globeandmail.com>
Date: Thu, 2 Aug 2018 19:17:43 +0000
Subject: Automatic reply: ATTN Michael Snaauw I called you and a lot
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To: David Amos <motomaniac333@gmail.com>
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On 8/2/18, David Amos <motomaniac333@gmail.com> wrote:
> http://www.goc411.ca/en/65655/
>
>
> ---------- Forwarded message ----------
> From: David Amos <motomaniac333@gmail.com>
> Date: Fri, 9 Jun 2017 12:37:50 -0400
> Subject: YO Jean-Yves Duclos Re My Old Age pension etc I just made my
> last calls your people at (613) 957-1954, 613-992-8865, (819 654
> 5546), (819) 654 5754 and (819) 654 7047 before I file my lawsuit
> against you and the Crown
> To: jeanyves.duclos@hrsdc-rhdcc.
> Jean-Yves.Duclos.c1@parl.gc.ca
> <judy.foote.a1@parl.gc.ca>, media@hrsdc-rhdcc.gc.ca,
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> "Diane.Lebouthillier" <Diane.Lebouthillier@cra-arc.
> "Diane.Lebouthillier" <Diane.Lebouthillier@parl.gc.
> <gopublic@cbc.ca>, investigations <investigations@cbc.ca>,
> steven.blaney.a1@parl.gc.ca, pm <pm@pm.gc.ca>, premier
> <premier@gnb.ca>, "justin.trudeau.a1" <justin.trudeau.a1@parl.gc.ca>
> "Gerald.Butts" <Gerald.Butts@pmo-cpm.gc.ca>, "maxime.bernier"
> <maxime.bernier@parl.gc.ca>, "erin.otoole" <erin.otoole@parl.gc.ca>,
> "Kellie.Leitch" <Kellie.Leitch@parl.gc.ca>, PABMINMAILG@cra-arc.gc.ca,
> "andrew.scheer" <andrew.scheer@parl.gc.ca>, Geoff Regan
> <geoff@geoffregan.ca>, PREMIER <PREMIER@gov.ns.ca>, "victor.boudreau"
> <victor.boudreau@gnb.ca>, "Michael.Wernick"
> <Michael.Wernick@pco-bcp.gc.ca
> <jbosnitch@gmail.com>
> Cc: David Amos <david.raymond.amos@gmail.com>
> leslie.maclean@servicecanada.
> <harvey.cashore@cbc.ca>, "Gilles.Blinn" <Gilles.Blinn@rcmp-grc.gc.ca>,
> "Larry.Tremblay" <Larry.Tremblay@rcmp-grc.gc.ca
>
> http://www.canadianlawlist.
>
> Employment and Social Development Canada
> 140 Promenade du Portage
> Gatineau, Québec K1A 0J9
> Phone: 819-994-7976
> Fax: 819-953-5603
>
> Listed Individuals
> Jean-Yves Duclos
> Patty Hajdu
> Louise Levonian
> Carla Qualtrough
> Lori R. Sterling
>
> ---------- Original message ----------
> From: Diane.Lebouthillier@parl.gc.ca
> Date: Fri, 26 May 2017 22:23:12 +0000
> Subject: Réponse automatique : YO Jean-Yves Duclos Re My Old Age
> pension etc Well May 24th came and went and I just called you (819 654
> 5546) and your Deputy Ms Levonian (819 953 5603) about my right to to
> sue you and your minions in Federal Court
> To: motomaniac333@gmail.com
>
> Merci d'avoir écrit à l'honorable Diane Lebouthillier, députée de
> Gaspésie - Îles-de-la-Madeleine. Votre courriel recevra toute
> l'attention voulue.
>
> Thank you for writing to the Hon. Diane Lebouthillier, Member of
> Parliament for Gaspésie - îles-de-la-Madeleine. Please be assured that
> your correspondence will receive every consideration.
>
>
> ---------- Forwarded message ----------
> From: David Amos <motomaniac333@gmail.com>
> Date: Thu, 27 Apr 2017 11:03:05 -0400
> Subject: Fwd. YO Minister Jean-Yves.Duclos Once again you are welcome
> Now how about the RCMP, the LIEbranos and all the other
> parliamentarians start acting with some semblance of Integrity after
> all these years?
> To: nicole.bruni@bakermckenzie.com
> <bill.pentney@justice.gc.ca>, "rona.ambrose"
> <rona.ambrose@parl.gc.ca>, "Jody.Wilson-Raybould"
> <Jody.Wilson-Raybould@parl.gc.
> <jan.jensen@justice.gc.ca>, "Dale.Morgan"
> <Dale.Morgan@rcmp-grc.gc.ca>, "dale.drummond"
> <dale.drummond@rcmp-grc.gc.ca>
> <Paul.Lynch@edmontonpolice.ca>
> Cc: David Amos <david.raymond.amos@gmail.com>
> <Michael.Duheme@rcmp-grc.gc.ca
> <michael.chong@parl.gc.ca>, michael <michael@frankmagazine.ca>
>
> ---------- Original message ----------
> From: "MacKay, Peter" <Peter.MacKay@bakermckenzie.
> Date: Thu, 27 Apr 2017 14:39:17 +0000
> Subject: Automatic reply: YO Minister Jean-Yves.Duclos Once again you
> are welcome Now how about the RCMP, the LIEbranos and all the other
> parliamentarians start acting with some semblance of Integrity after
> all these years?
> To: David Amos <motomaniac333@gmail.com>
>
> Thank you for your email. I am currently out of the office attending
> meetings and have limited access to email and voicemail. If your
> matter is urgent, or if you require assistance, please contact my
> assistant, Nicole Bruni at nicole.bruni@bakermckenzie.com or at (416)
> 865-3861.
>
>
> This message may contain confidential and privileged information. If
> it has been sent to you in error, please reply to advise the sender of
> the error and then immediately delete this message. Please visit
> www.bakermckenzie.com/
> concerning this message.
>
>
> ---------- Forwarded message ----------
> From: David Amos <motomaniac333@gmail.com>
> Date: Tue, 31 Jul 2018 18:40:41 -0400
> Subject: ATTN Michael Snaauw I called you and a lot of your pals today
> To: Michael.Snaauw@cra-arc.gc.ca, pierre.corbin@cra-arc.gc.ca,
> ciat@ciat.org, tax@americanbar.org, drewacummings@gmail.com,
> matthewscottcooper@gmail.com, sophia.siddiqui@usdoj.gov,
> marissa.k.rensen@irscounsel.
> andrewjohnbrewster@gmail.com, Newsroom <Newsroom@globeandmail.com>,
> "harvey.cashore" <harvey.cashore@cbc.ca>
> Cc: David Amos <david.raymond.amos@gmail.com>
> william.m.paul@irscounsel.
> "Ted.Gallivan" <Ted.Gallivan@cra-arc.gc.ca>,
> Charles.Nadeau@cra-arc.gc.ca, Richard.Gobeil@cra-arc.gc.ca,
> Keith.Barrass@cra-arc.gc.ca
>
> https://www.irs.gov/about-irs/
>
> https://www.americanbar.org/
>
> http://www.fedbar.org/
>
> https://www.ciat.org/
>
> https://www.canada.ca/en/
>
> ---------- Forwarded message ----------
> From: David Amos <motomaniac333@gmail.com>
> Date: Fri, 27 Jul 2018 13:49:13 -0400
> Subject: Attn Commissioner of Revenue Bob Hamilton I just called Best
> you start lining up your lawyers ASAP EH?
> To: bob.hamilton@canada.ca, "Diane.Lebouthillier"
> <Diane.Lebouthillier@cra-arc.
> <j.Russell.George@tigta.treas.
> "Jean-Yves.Duclos" <Jean-Yves.Duclos@parl.gc.ca>
> Cc: David Amos <david.raymond.amos@gmail.com>
> <Nathalie.Drouin@justice.gc.ca
>
> Bob Hamilton
> Commissioner of Revenue and Chief Executive Officer of the CRA
> Telephone Number 613-957-3688
> Email bob.hamilton@canada.ca
>
> Perhaps I will run into somebody ethical some day but I bet the
> Yankees know that they won't work for any government. N'esy Pas
> George J Russell and Mikey Cohen?
>
> ---------- Forwarded message ----------
> From: "Ministre / Minister (SPAC/PSPC)"
> <TPSGC.Ministre-Minister.
> Date: Tue, 24 Jul 2018 10:56:46 -0400
> Subject: Accusé réception / Acknowledgement
> To: David Amos <motomaniac333@gmail.com>
>
> Le présent message accuse réception de votre courriel au ministre des
> Services publics et de l'Approvisionnement. Soyez assuré(e) que nous y
> accorderons toute l'attention voulue.
>
> Merci de votre intérêt.
> ______________________________
>
> This message is to acknowledge receipt of your email to the Minister
> of the Public Services and Procurement. Please be assured it will be
> given every consideration.
>
> Thank you for your interest.
>
> http://davidraymondamos3.
>
> Tuesday, 14 February 2017
>
> RE FATCA, NAFTA & TPP etc ATTN President Donald J. Trump I just got
> off the phone with your lawyer Mr Cohen (646-853-0114) Why does he lie
> to me after all this time???
>
> ---------- Forwarded message ----------
> From: Michael Cohen <mcohen@trumporg.com>
> Date: Tue, 14 Feb 2017 14:15:14 +0000
> Subject: Automatic reply: RE FATCA ATTN Pierre-Luc.Dusseault I just
> called and left a message for you
> To: David Amos <motomaniac333@gmail.com>
>
> Effective January 20, 2017, I have accepted the role as personal
> counsel to President Donald J. Trump. All future emails should be
> directed to mdcohen212@gmail.com and all future calls should be
> directed to 646-853-0114.
> ______________________________
> This communication is from The Trump Organization or an affiliate
> thereof and is not sent on behalf of any other individual or entity.
> This email may contain information that is confidential and/or
> proprietary. Such information may not be read, disclosed, used,
> copied, distributed or disseminated except (1) for use by the intended
> recipient or (2) as expressly authorized by the sender. If you have
> received this communication in error, please immediately delete it and
> promptly notify the sender. E-mail transmission cannot be guaranteed
> to be received, secure or error-free as emails could be intercepted,
> corrupted, lost, destroyed, arrive late, incomplete, contain viruses
> or otherwise. The Trump Organization and its affiliates do not
> guarantee that all emails will be read and do not accept liability for
> any errors or omissions in emails. Any views or opinions presented in
> any email are solely those of the author and do not necessarily
> represent those of The Trump Organization or any of its
> affiliates.Nothing in this communication is intended to operate as an
> electronic signature under applicable law.
>
>
>
>
> ---------- Forwarded message ----------
> From: "Min.Mail / Courrier.Min (CRA/ARC)" <PABMINMAILG@cra-arc.gc.ca>
> Date: Wed, 24 May 2017 13:10:52 +0000
> Subject: Your various correspondence about abusive tax schemes - 2017-02631
> To: "motomaniac333@gmail.com" <motomaniac333@gmail.com>
>
> Mr. David Raymond Amos
> motomaniac333@gmail.com
>
>
> Dear Mr. Amos:
>
> Thank you for your various correspondence about abusive tax schemes,
> and for your understanding regarding the delay of this response.
>
> This is an opportunity for me to address your concerns about the way
> the Canada Revenue Agency (CRA) deals with aggressive tax planning,
> tax avoidance, and tax evasion by targeting individuals and groups
> that promote schemes intended to avoid payment of tax. It is also an
> opportunity for me to present the Government of Canada’s main
> strategies for ensuring fairness for all taxpayers.
>
> The CRA’s mission is to preserve the integrity of Canada’s tax system,
> and it is taking concrete and effective action to deal with abusive
> tax schemes. Through federal budget funding in 2016 and 2017, the
> government has committed close to $1 billion in cracking down on tax
> evasion and combatting tax avoidance at home and through the use of
> offshore transactions. This additional funding is expected to generate
> federal revenues of $2.6 billion over five years for Budget 2016, and
> $2.5 billion over five years for Budget 2017.
>
> More precisely, the CRA is cracking down on tax cheats by hiring more
> auditors, maintaining its underground economy specialist teams,
> increasing coverage of aggressive goods and service tax/harmonized
> sales tax planning, increasing coverage of multinational corporations
> and wealthy individuals, and taking targeted actions aimed at
> promoters of abusive tax schemes.
>
> On the offshore front, the CRA continues to develop tools to improve
> its focus on high‑risk taxpayers. It is also considering changes to
> its Voluntary Disclosures Program following the first set of program
> recommendations received from an independent Offshore Compliance
> Advisory Committee. In addition, the CRA is leading international
> projects to address the base erosion and profit shifting initiative of
> the G20 and the Organisation for Economic Co-operation and
> Development, and is collaborating with treaty partners to address the
> Panama Papers leaks.
>
> These actions are evidence of the government’s commitment to
> protecting tax fairness. The CRA has strengthened its intelligence and
> technical capacities for the early detection of abusive tax
> arrangements and deterrence of those who participate in them. To
> ensure compliance, it has increased the number of actions aimed at
> promoters who use illegal schemes. These measures include increased
> audits of such promoters, improved information gathering, criminal
> investigations where warranted, and better communication with
> taxpayers.
>
> To deter potential taxpayer involvement in these schemes, the CRA is
> increasing notifications and warnings through its communications
> products. It also seeks partnerships with tax preparers, accountants,
> and community groups so that they can become informed observers who
> can educate their clients.
>
> The CRA will assess penalties against promoters and other
> representatives who make false statements involving illegal tax
> schemes. The promotion of tax schemes to defraud the government can
> lead to criminal investigations, fingerprinting, criminal prosecution,
> court fines, and jail time.
>
> Between April 1, 2011, and March 31, 2016, the CRA’s criminal
> investigations resulted in the conviction of 42 Canadian taxpayers for
> tax evasion with links to money and assets held offshore. In total,
> the $34 million in evaded taxes resulted in court fines of $12 million
> and 734 months of jail time.
>
> When deciding to pursue compliance actions through the courts, the CRA
> consults the Department of Justice Canada to choose an appropriate
> solution. Complex tax-related litigation is costly and time consuming,
> and the outcome may be unsuccessful. All options to recover amounts
> owed are considered.
>
> More specifically, in relation to the KPMG Isle of Man tax avoidance
> scheme, publicly available court records show that it is through the
> CRA’s efforts that the scheme was discovered. The CRA identified many
> of the participants and continues to actively pursue the matter. The
> CRA has also identified at least 10 additional tax structures on the
> Isle of Man, and is auditing taxpayers in relation to these
> structures.
>
> To ensure tax fairness, the CRA commissioned an independent review in
> March 2016 to determine if it had acted appropriately concerning KPMG
> and its clients. In her review, Ms. Kimberley Brooks, Associate
> Professor and former Dean of the Schulich School of Law at Dalhousie
> University, examined the CRA’s operational processes and decisions in
> relation to the KPMG offshore tax structure and its efforts to obtain
> the names of all taxpayers participating in the scheme. Following this
> review, the report, released on May 5, 2016, concluded that the CRA
> had acted appropriately in its management of the KPMG Isle of Man
> file. The report found that the series of compliance measures the CRA
> took were in accordance with its policies and procedures. It was
> concluded that the procedural actions taken on the KPMG file were
> appropriate given the facts of this particular case and were
> consistent with the treatment of taxpayers in similar situations. The
> report concluded that actions by CRA employees were in accordance with
> the CRA’s Code of Integrity and Professional Conduct. There was no
> evidence of inappropriate interaction between KPMG and the CRA
> employees involved in the case.
>
> Under the CRA’s Code of Integrity and Professional Conduct, all CRA
> employees are responsible for real, apparent, or potential conflicts
> of interests between their current duties and any subsequent
> employment outside of the CRA or the Public Service of Canada.
> Consequences and corrective measures play an important role in
> protecting the CRA’s integrity.
>
> The CRA takes misconduct very seriously. The consequences of
> misconduct depend on the gravity of the incident and its repercussions
> on trust both within and outside of the CRA. Misconduct can result in
> disciplinary measures up to dismissal.
>
> All forms of tax evasion are illegal. The CRA manages the Informant
> Leads Program, which handles leads received from the public regarding
> cases of tax evasion across the country. This program, which
> coordinates all the leads the CRA receives from informants, determines
> whether there has been any non-compliance with tax law and ensures
> that the information is examined and conveyed, if applicable, so that
> compliance measures are taken. This program does not offer any reward
> for tips received.
>
> The new Offshore Tax Informant Program (OTIP) has also been put in
> place. The OTIP offers financial compensation to individuals who
> provide information related to major cases of offshore tax evasion
> that lead to the collection of tax owing. As of December 31, 2016, the
> OTIP had received 963 calls and 407 written submissions from possible
> informants. Over 218 taxpayers are currently under audit based on
> information the CRA received through the OTIP.
>
> With a focus on the highest-risk sectors nationally and
> internationally and an increased ability to gather information, the
> CRA has the means to target taxpayers who try to hide their income.
> For example, since January 2015, the CRA has been collecting
> information on all international electronic funds transfers (EFTs) of
> $10,000 or more ending or originating in Canada. It is also adopting a
> proactive approach by focusing each year on four jurisdictions that
> raise suspicion. For the Isle of Man, the CRA audited 3,000 EFTs
> totalling $860 million over 12 months and involving approximately 800
> taxpayers. Based on these audits, the CRA communicated with
> approximately 350 individuals and 400 corporations and performed 60
> audits.
>
> In January 2017, I reaffirmed Canada’s important role as a leader for
> tax authorities around the world in detecting the structures used for
> aggressive tax planning and tax evasion. This is why Canada works
> daily with the Joint International Tax Shelter Information Centre
> (JITSIC), a network of tax administrations in over 35 countries. The
> CRA participates in two expert groups within the JITSIC and leads the
> working group on intermediaries and proponents. This ongoing
> collaboration is a key component of the CRA’s work to develop strong
> relationships with the international community, which will help it
> refine the world-class tax system that benefits all Canadians.
>
> The CRA is increasing its efforts and is seeing early signs of
> success. Last year, the CRA recovered just under $13 billion as a
> result of its audit activities on the domestic and offshore fronts.
> Two-thirds of these recoveries are the result of its audit efforts
> relating to large businesses and multinational companies.
>
> But there is still much to do, and additional improvements and
> investments are underway.
>
> Tax cheats are having a harder and harder time hiding. Taxpayers who
> choose to promote or participate in malicious and illegal tax
> strategies must face the consequences of their actions. Canadians
> expect nothing less. I invite you to read my most recent statement on
> this matter at canada.ca/en/revenue-agency/
> statement_from_
>
> Thank you for taking the time to write. I hope the information I have
> provided is helpful.
>
> Sincerely,
>
>
> The Honourable Diane Lebouthillier
> Minister of National Revenue
>
>
> ---------- Forwarded message ----------
> From: Jody.Wilson-Raybould@parl.gc.
> Date: Sun, 22 Jul 2018 23:36:35 +0000
> Subject: Automatic reply: NATA and "Litigation Lmbo" with Trump and
> his buddies in the WTO
> To: motomaniac333@gmail.com
>
> Thank you for writing to the Honourable Jody Wilson-Raybould, Member
> of Parliament for Vancouver Granville.
>
> This message is to acknowledge that we are in receipt of your email.
> Due to the significant increase in the volume of correspondence, there
> may be a delay in processing your email. Rest assured that your
> message will be carefully reviewed.
>
> To help us address your concerns more quickly, please include within
> the body of your email your full name, address, and postal code.
>
> Please note that your message will be forwarded to the Department of
> Justice if it concerns topics pertaining to the member's role as the
> Minister of Justice and Attorney General of Canada. For all future
> correspondence addressed to the Minister of Justice, please write
> directly to the Department of Justice at
> mcu@justice.gc.ca<mailto:mcu@
>
> Thank you
>
> -------------------
>
> Merci d'?crire ? l'honorable Jody Wilson-Raybould, d?put?e de
> Vancouver Granville.
>
> Le pr?sent message vise ? vous informer que nous avons re?u votre
> courriel. En raison d'une augmentation importante du volume de
> correspondance, il pourrait y avoir un retard dans le traitement de
> votre courriel. Sachez que votre message sera examin? attentivement.
>
> Pour nous aider ? r?pondre ? vos pr?occupations plus rapidement,
> veuillez inclure dans le corps de votre courriel votre nom complet,
> votre adresse et votre code postal.
>
> Veuillez prendre note que votre message sera transmis au minist?re de
> la Justice s'il porte sur des sujets qui rel?vent du r?le de la
> d?put?e en tant que ministre de la Justice et procureure g?n?rale du
> Canada. Pour toute correspondance future adress?e ? la ministre de la
> Justice, veuillez ?crire directement au minist?re de la Justice ?
> mcu@justice.gc.ca ou appelez au 613-957-4222.
>
> Merci
>
>
> ---------- Forwarded message ----------
> From: Brian Gallant <briangallant10@gmail.com>
> Date: Sun, 22 Jul 2018 16:49:18 -0700
> Subject: Merci / Thank you Re: Fwd: NAFTA and "Litigation Lmbo" with
> Trump and his buddies in the WTO
> To: motomaniac333@gmail.com
>
> (Français à suivre)
>
> If your email is pertaining to the Government of New Brunswick, please
> email me at brian.gallant@gnb.ca
>
> If your matter is urgent, please email Greg Byrne at greg.byrne@gnb.ca
>
> Thank you.
>
> Si votre courriel s'addresse au Gouvernement du Nouveau-Brunswick,
> svp m'envoyez un courriel à brian.gallant@gnb.ca
>
> Pour les urgences, veuillez contacter Greg Byrne à greg.byrne@gnb.ca
>
> Merci.
>
>
From: David Amos <david.raymond.amos333@gmail.com>
Date: Thu, Feb 20, 2025 at 3:01 PM
Subject: Fwd: WOW The N.B. Power Board of Directors is still pretending that KPMG is ethical
To: <president-presidente@tbs-sct.gc.ca>
---------- Original message ---------
From: Petitpas Taylor, Ginette - M.P. <Ginette.PetitpasTaylor@parl.gc.ca>
Date: Thu, Feb 20, 2025 at 2:31 PM
Subject: Automatic reply: WOW The N.B. Power Board of Directors is still pretending that KPMG is ethical
To: David Amos <david.raymond.amos333@gmail.com>
(A message in English will follow)
Bonjour,
Je vous remercie d’avoir écrit.
Bien que mon bureau reçoive un volume considérable de correspondance, en tant que députée, j’apprécie tous les commentaires, positifs ou négatifs, sur les questions d’actualité et mon équipe et moi-même suivons attentivement ce qui est dans l’esprit de mes électeurs.
Toutefois, comme j’ai été élue pour servir les gens de Moncton-Riverview-Dieppe, la priorité sera accordée à la correspondance provenant de ma circonscription.
Par conséquent, si vous ne l’avez pas déjà fait, nous vous prions d’inclure votre adresse personnelle, votre code postal et votre numéro de téléphone dans les courriels, car cela nous aide à mieux répondre aux messages ou aux demandes de renseignements qui nécessitent un suivi.
Si votre e-mail n'incluait pas votre numéro de téléphone et votre adresse résidentielle avec code postal, veuillez cliquer sur « répondre » pour fournir ces informations.
Notez que je ne réponds généralement pas aux courriels qui sont envoyés à tous les députés ou aux courriels qui sont envoyés à d'autres individus et où je suis seulement en copie.
Si votre demande relève de mon portefeuille du Conseil du Trésor, je vous prie de me communiquer à l'adresse
president-presidente@tbs-sct.
Je vous remercie de vos commentaires et il est important pour moi de vous aider dans nos efforts continus pour fournir le meilleur service possible.
Cordialement,
Ginette
_____________________________
Hello,
Thank you for writing.
While our office receives a tremendous volume of correspondence, as a Member of Parliament, I appreciate all feedback, positive or negative, on the issues of the day and my team and I carefully track what is on the minds of my constituents.
However, because I was elected to serve the people of Moncton-Riverview-Dieppe, priority will be given to correspondence from my constituency.
As such, if you haven`t already done so, we appreciate you including your home address, postal code and telephone number in emails, as it helps us better respond to messages or inquiries that require follow-up. If your email did not include your phone number and residential address with postal code, please hit “reply” to provide this information.
Note that I generally do not reply to emails that are sent to all Members or emails that are sent to other individuals and in which I am only in CC.
If your request falls under my role as President of the Treasury Board, please send your email to
president-presidente@tbs-sct.
I appreciate your feedback and it is important to me to assist you in our ongoing efforts to provide the best possible service.
Regards,
Ginette
---------- Original message ---------
Date: Thu, Feb 20, 2025 at 2:32 PM
Subject: Automatic reply: WOW The N.B. Power Board of Directors is still pretending that KPMG is ethical
To: David Amos <david.raymond.amos333@gmail.com>
Thank you for contacting the Honourable Rob Moore, P.C., M.P. office. We appreciate the time you took to get in touch with our office.
If you did not already, please ensure to include your full contact details on your email and the appropriate staff will be able to action your request. We strive to ensure all constituent correspondence is responded to in a timely manner.
If your question or concern is time sensitive, please call our office: 506-832-4200.
Again, we thank you for taking the time to share your thoughts and concerns.
~*~*~*~*~*~*~*~
Office of the Honourable Rob Moore, P.C., M.P.
Member of Parliament for Fundy Royal
From: David Amos <david.raymond.amos333@gmail.com>
Date: Thu, Feb 20, 2025 at 2:31 PM
Subject: Re: WOW The N.B. Power Board of Directors is still pretending that KPMG is ethical
To: Tammy.Scott-Wallace <Tammy.Scott-Wallace@gnb.ca>, <AlexandreCedric.Doucet@gnb.ca>, <Sam.Johnston@gnb.ca>, jacques.j.leblanc <Jacques.J.Leblanc@gnb.ca>, Marco.LeBlanc <Marco.LeBlanc@gnb.ca>, <Ian.Lee@gnb.ca>, Eric.Mallet <Eric.Mallet@gnb.ca>, Mitton, Megan (LEG) <Megan.Mitton@gnb.ca>, <Luc.Robichaud@gnb.ca>, <Natacha.Vautour@gnb.ca>, <Rob.Weir@gnb.ca>
Cc: Clark, Lori <lclark@nbpower.com>, John Furey <JohnFurey@fureylegal.com>, Rene.Legacy <Rene.Legacy@gnb.ca>, David.Coon <David.Coon@gnb.ca>, Robert. Jones <Robert.Jones@cbc.ca>, Diane.Lebouthillier <Diane.Lebouthillier@parl.gc.ca>, pierre.poilievre <pierre.poilievre@parl.gc.ca>, fin.minfinance-financemin.fin <fin.minfinance-financemin.fin@canada.ca>, Susan.Holt <Susan.Holt@gnb.ca>, <jennifer.sweet@cbc.ca>, John.Williamson <John.Williamson@parl.gc.ca>, rob.moore <rob.moore@parl.gc.ca>, <JOHN.HERRON@gnb.ca>, <Don.Monahan@gnb.ca>, Bill.Oliver <Bill.Oliver@gnb.ca>, Wayne.Long <Wayne.Long@parl.gc.ca>, Ginette.PetitpasTaylor <Ginette.PetitpasTaylor@parl.gc.ca>, Glen.Savoie <Glen.Savoie@gnb.ca>, <eric.beaulieu@gnb.ca>, mcu <mcu@justice.gc.ca>
NEW BRUNSWICK ENERGY AND UTILITIES BOARD
INTERROGATORIES
(Rule 4.3)
In Relation to an Application by: New Brunswick Power Corporation
In Accordance with: Section 103(1) of the Electricity Act, S.N.B. 2013 c.7
TO: New Brunswick Power Corporation (NBP)
FROM: Gerald Bourque (GB)
NBP (GB) IR-1 November 16, 2017
Reference: NBP1.18 Appendix F i. 2016-17 NB Power Audited Financial Statements
Page 2
Questions:
a. If not already provided, please provide the names and resumes of the authors of
Independent Auditors Report offered to the Honourable Jocelyne Roy-Vienneau,
Lieutenant-Governor of New Brunswick.
b. If the information has been provided please identify where the names and
resumes can be found.
References: Transcript Pre-Hearing / Conférence préalable à l'audience 10/31/2017
Page 68 Line 14 Page 81 Lines 3- 8
NBP4.09 NBP Appendix AM ii 018-19 CCAS 3.4.3R LIREPP Energy and Demand -
Revision of NBP 1.73 - Nov 7 2017
NBP4.10 NBP Appendix AM iii 2018-19 CCAS 3.4.4R LIREPP 1 No-LIREPP - Revision
of NBP 1.74 - Nov 7 2017
Revision of NBP 1.76 - Nov 7 2017
NBP4.12 NBP Appendix AM ix 2018-19 CCAS 3.7R Baseline Model - Revision of NBP
1.76 - Nov 7 2017
NBP4.13 NBP Appendix AM v 2018-19 CCAS 3.4.4R LIREPP 3 With Adjustment -
Revision of NBP 1.77 - Nov 7 2017
NBP4.14 NBP Appendix AM vi 018-19 CCAS 3.4.4R LIREPP 4 Recommended -
Revision of NBP 1.78 -Nov 7 2017
Question:
Is NB Power aware of the communications between David Raymond Amos and
Gregory A. Hickey and their concerns about NB Power, the NBEUB and of the
U.S .Commerce Department's concerns about NB Power's Large Industrial
Renewable Energy Purchase Program (LIREPP)?
Reference: Transcript Pre-Hearing / Conférence préalable à l'audience 10/31/2017
Question:
Has NB Power responded to the concerns of David Raymond Amos regarding
the allegations made against him during the public hearing on October 31, 2017?
"In an emailed reply to CBC News on Friday, N.B. Power said its board of directors had asked the accounting firm KPMG to conduct the audit requested by the government, "with a view to identifying the root cause(s) of the increases."
KPMG will observe testing of some old-style power meters as well as some smart meters and will review "a sampling" of high bill complaints received by N.B. Power customer service agents, said utility spokesperson Dominique Couture.
It wouldn't be possible to review all of the complaints within the allotted timeframe, she said."
https://www.cbc.ca/news/
canada/new-brunswick/nb-power- rate-increase-final-arguments- 1.6758622
Final arguments set to begin over request for an 8.9% power rate increase
N.B. Power's largest customer J.D. Irving Ltd. has led the charge against the proposed increase
Robert Jones · CBC News · Posted: Feb 24, 2023 7:00 AM AST | Last Updated: 2 hours ago
N.B. Power's acting president Lori Clark laid out the utility's case for an 8.9 per cent rate increase during the first day of hearings. (Jonathan Collicott/CBC)
N.B. Power's request for an 8.9 per cent rate increase enters its final phase in Fredericton today with closing arguments in front of the New Brunswick Energy and Utilities Board. Stiff opposition, led principally by J.D. Irving Ltd., has left the outcome in some doubt.
Three lawyers acting for the forestry, manufacturing and transportation company dominated questioning of witnesses over seven days of hearings and are likely to lead calls for the increase to be reduced, if not scuttled outright, even if the utility's growing financial problems will require customers to pay more in future years.
JDI's lead lawyer in the case, Nancy Rubin, a partner with Stewart McKelvey in Halifax, has been building a case the increase is not specifically needed for the coming year, even if that means putting off dealing with N.B. Power's growing debt troubles to future years.
Stiff opposition led principally by J.D. Irving Ltd has left the outcome of the hearings in some doubt. (Robert Jones/CBC)
"As an individual residential customer, or a business operating in New Brunswick, do you believe that those customers would prefer to have that cash in hand now for their own capital, an investment, or their daily expenses versus pre-paying it against a future debt?," Rubin asked utility expert Robert Knecht on Tuesday, previewing what is likely to be the company's core message to the board today.
Between customers paying now or paying later for N.B. Power's significant financial problems - JDI's position appears to be that later is better.
Not surprisingly, N.B. Power is leading the charge for the increase to be granted in full.
On the hearing's opening day, the utility's acting president Lori Clark delivered its argument for needing the 8.9 per cent increase, citing inflation, rising interest rates and operational troubles.
"In a single year, the cost of fuel and purchased power necessary to supply customers in New Brunswick has increased by $102.8 million," Clark told the hearing.
"This has occurred largely due to market price increases for natural gas, heavy fuel oil and electricity."
But the utility has struggled to defend the trustworthiness of those numbers, given they had been put together several months ago, in early June.
In a Perry Mason moment during cross examination last Thursday, JDI lawyer Conor O'Neil won an admission from the utility that at least two internal updates of those projections had been put together by the utility since, but not shared with the hearing.
J.D. Irving Ltd. lawyer Conor O'Neil successfully wrestled updated financial information from N.B. Power about its rate increase during the hearing. (Ed Hunter/CBC)
O'Neil convinced the board the updates should be turned over despite objections from N.B. Power lawyer John Furey, a decision that has taken the hearing in unexpected directions.
The updated projections were released by N.B. Power on Tuesday this week, but cut both ways.
They confirmed JDI's suspicions that N.B. Power's budget numbers were stale and the company's revenues and expenses for next year are better than it has been claiming.
But they also showed N.B. Power's current year has involved significant losses that have unexpectedly ballooned its net debt by $380 million to $5.3 billion as of December 31.
Independent utility experts Robert Knecht and Dustin Madsen both expressed shock at the rapid deterioration in N.B. Power's financial health in just the last few months revealed by the financial updates.
"When I first saw it, I did not believe it," said Knecht.
"I'm as surprised as Mr. Knecht," said Madsen
"I agree the position is deteriorating."
Energy and Utilities Board Chair Francois Beaulieu ordered the release of updated financial information from N.B. Power mid-hearing, but asked all parties to give an opinion during final arguments about whether it should be used to decide on a rate increase. (Jonathan Collicott/CBC)
EUB Chairman Francois Beaulieu has said the board is not sure how it will treat all of the new information and asked all sides "to make submissions on this issue during the closing arguments,"
Those begin this morning at 9:00 am.
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.
CBC's Journalistic Standards and Practices
2 Comments
David Amos
Methinks Mr Jones is reading the same documents I am today N'esy Pas?
Fred Dee
NB has been starving NBpower for years!! It is time to allow it to look after its self while not destroying the population with mass power increases. Inflation last year was close to 7%, the cost of power production is way above that and the taxes charger to NB Power for carbon tax alone are going to jump yet again!! NS is doing 2 big jumps, NB needs to do the same. We need to look after the infrastructure that we have, prepare it for more wind/winter damage so power outages do not continue to go up!
Closing Submissions
February 24, 2023
Page 1 of 13
NEW BRUNSWICK ENERGY AND UTILITIES BOARD
In Relation to an Application by: New Brunswick Power Corporation
In Accordance with: Section 103(1) of the Electricity Act, SNB 2013 c. E‐7, to the New Brunswick Energy and Utilities Board (the "Board") for approval of the rates it proposes to charge for its services for each fiscal year.
TO: The New Brunswick Energy and Utilities Board (the “NBEUB” or the “Board”)
Closing Submissions of Utilities Municipal
Introduction
Good morning panel. Thank you for the opportunity to participate in Matter 541 and it has been good to
be back in the same room for the hearing.
This is a difficult time for ratepayers – COVID has not yet been relegated to history, inflation is the highest it has been in decades and a recession lurks on the horizon – and may already be here for some. The last thing any ratepayer wants to see is the prospect of an 8.9% increase in electricity rates. We see this sentiment in the numerous comments from the public.
Unfortunately, we don’t have a financially healthy NB Power (the “Applicant”) that can cushion the impact of inflation for ratepayers. Net income is forecast to be less than $14 million and debt is forecast to grow.
The Company’s debt represents 93% of its capital structure.1
Even with such a significant increase, NB Power’s net income is forecasted to be only $13.9 million and net
debt is forecasted to increase by $39.6 million.2
Clearly, this situation is not sustainable. In this Application, NB Power included the goal of $50 million in
savings to reduce the amount of the increase to 8.9%. To achieve this, it embarked on an employee
buyout plan, it engaged PWC to find additional savings, it reviewed its spending and reduced its spend
and was making commitments to find further savings. Through this proceeding, UM acknowledges there
have been savings, and potential savings, identified by NB Power and Interveners that will meet or exceed this forecasted $50 million in savings necessary to achieve the revenue requirement. There have also been increases in costs.3 We encourage NB Power to relentlessly pursue cost control and savings.
However, safety and reliability cannot be sacrificed.
To the extent the identified savings herein are accepted by this Board, we leave it to the Board’s discretion to determine the balance between reducing the revenue requirement and ensuring NB Power is in a position to meet its net income objective. Reluctantly, we view the risk of further deterioration of NB Power’s financial state, and the consequences thereof, larger future increases and the potential sacrifice of reliability, too great to be able to recommend any reduction in the requested increase.
In addition to our comments on the revenue requirement, UM have comments regarding the interaction
of the new variance accounts and future general rate application and the process for future general rate
applications.
Setting the Stage for the Ask by NB Power
We are in an era with significant inflation, fuel price volatility, a COVID‐19 Pandemic and the supply chain disruptions, a significant unplanned outage at Point LePreau Nuclear Generating Station (“PLNGS”) and a premature replacement of the Bayside Generating Station have all restricted NB Power’s ability to meet its financial targets. As this Board will recall, NB Power had a series of General Rate Applications with sub‐ 2% rate increases pursuing the objective of “low and stable rates”.4 This has come at the expense of making progress on achieving a 20% equity ratio – in fact, the 93:7 debt:equity ratio is the same percentage as it was in 2015/16 fiscal year. However, now there is a mandate letter from the Minister setting a date for NB Power to achieve the 20% equity thickness in 2027.5 The impending need to replace several generation facilities beginning in 2027 makes achieving 20% equity all the more urgent!
It is in the midst of these circumstances that NB Power seeks an 8.9% increase in the rates. This increase
is proposed to be reduced through the clearance of the recently established Variance Accounts.6 Ms.
Clarke, the first President of NB Power to come before this Board in years, spoke of the need to balance
the financial objectives with ratepayer impact. UM agree such a balancing of interests must occur. Ms.
Clarke spoke of the commitment of the executive to achieving the forecasted results in the Test Year. In
her opening statement she said:
Second, we have taken steps to reduce the level of increase in operating costs. Over 18 million of cost savings were identified and acted upon through NB Power’s budgeting process. Another 27.5 million reduction has been applied to the budget and NB Power is committed to ensuring these additional cost savings are found.
We have engaged the assistance of external expertise to assist us in finding these savings and have started the process with the elimination of almost 150 positions through a staff optimization program that will save approximately 13 to $15 million in the upcoming fiscal year alone.
All of these elements led us to ask the Board for a one year rate increase of 8.9 percent. When we first started looking at this increase, we were in double digits. We dug deep to cut costs where we could, so we could reduce the ask for this increase.7
In addition, a new strategic plan is being developed. It is imperative that this plan provide a new approach to achieve concrete, aggressive gains provided in the Three Year Business Plan.8
The UM is encouraged NB Power is undertaking these initiatives. We know the management and staff of
the utility are good people. We are not questioning their sincerity, their commitment nor their work ethic.
However, history would indicate there remains an impediment to the successful execution in delivering
the forecasted results.
Further, while it may be tempting to just reject the request as too much, we must understand the fragile
financial state the utility is in. During a 3 month period from September to December 20229 the debt to
equity ratio deteriorated by 3% as result, in part, of the unplanned outage at PLNGS and Bayside
Generating Station. Inflation is forecasted to be “stickier” than forecast when this Application was filed.10
A further unforeseen circumstance could be disastrous. New Brunswickers need a financially stable,
efficient NB Power.
Finally, the Regulatory Variance Accounts and Deferral Account Regulation – Electricity Act11 provides a new element to this GRA. While the impact of the new variance accounts is proposed to mitigate the impact of the rate increase requested in this proceeding, the evidence suggests that mitigation will be reversed in the future year.12 On the positive side, customers and NB Power can be assured that forecast revenues/costs and actual revenues/costs balance will balance over time. It appears though that any forecasted gain cannot be used to increase net income and reduce debt. As such, it appears a tool to address the debt issue seems to have been removed from the NB Power tool box. It also reinforces the need to forecast better as only forecast net income from energy and fuel and purchased power will be available to pay down debt.
Cost Control, Context and History
To properly understand UM’s comments, we feel it is helpful to recall what happened in prior hearings
and what we have heard in this proceeding.
UM has been present at each General Rate Application since the revisions to the Electricity Act that
restored NB Power to a vertically integrated utility. In Matter 272, NB Power was forecasting to meet the 80:20 debt equity ratio in 6 years. In the Board’s Decision in Matter 272, UM notes that JDI had thought that time was too aggressive and that a 10 year horizon would be more appropriate. The Board stated in that decision the following:
[116] The Board recognizes the current state of NB Power’s capital structure as a significant
factor. Based on the 10‐Year Plan, the forecast for the fiscal year 2015/16 is 93% debt and 7%
equity. The declared Government policy in section 68 of the Act is that rates should provide
sufficient revenue to earn a return to achieve a capital structure of at least 20% equity. The
capital structure goal must in turn be considered by the Board in the context of all of the other
factors listed in subsection 103(7) of the Act, including the 10‐Year Plan and the IRP.13
In response to an undertaking in this proceeding,14 NB Power stated the debt:equity level was 93:7. UM
has in prior proceedings recognized the debt level as a problem and wanted greater emphasis on debtrepayment.15 Unfortunately, it turns out UM’s fears are being realized, that NB Power is spending more than planned and making no progress towards building equity despite its prior forecasts of having
Further, while it may be tempting to just reject the request as too much, we must understand the fragile
financial state the utility is in. During a 3 month period from September to December 20229 the debt to
equity ratio deteriorated by 3% as result, in part, of the unplanned outage at PLNGS and Bayside
Generating Station. Inflation is forecasted to be “stickier” than forecast when this Application was filed.10
A further unforeseen circumstance could be disastrous. New Brunswickers need a financially stable,
efficient NB Power.
Finally, the Regulatory Variance Accounts and Deferral Account Regulation – Electricity Act11 provides a new element to this GRA. While the impact of the new variance accounts is proposed to mitigate the impact of the rate increase requested in this proceeding, the evidence suggests that mitigation will be reversed in the future year.12 On the positive side, customers and NB Power can be assured that forecast revenues/costs and actual revenues/costs balance will balance over time. It appears though that any forecasted gain cannot be used to increase net income and reduce debt. As such, it appears a tool to address the debt issue seems to have been removed from the NB Power tool box. It also reinforces the need to forecast better as only forecast net income from energy and fuel and purchased power will be available to pay down debt.
Cost Control, Context and History
To properly understand UM’s comments, we feel it is helpful to recall what happened in prior hearings
and what we have heard in this proceeding.
UM has been present at each General Rate Application since the revisions to the Electricity Act that
restored NB Power to a vertically integrated utility. In Matter 272, NB Power was forecasting to meet the 80:20 debt equity ratio in 6 years. In the Board’s Decision in Matter 272, UM notes that JDI had thought that time was too aggressive and that a 10 year horizon would be more appropriate. The Board stated in that decision the following:
[116] The Board recognizes the current state of NB Power’s capital structure as a significant
factor. Based on the 10‐Year Plan, the forecast for the fiscal year 2015/16 is 93% debt and 7%
equity. The declared Government policy in section 68 of the Act is that rates should provide
sufficient revenue to earn a return to achieve a capital structure of at least 20% equity. The
capital structure goal must in turn be considered by the Board in the context of all of the other
factors listed in subsection 103(7) of the Act, including the 10‐Year Plan and the IRP.13
In response to an undertaking in this proceeding,14 NB Power stated the debt:equity level was 93:7. UM
has in prior proceedings recognized the debt level as a problem and wanted greater emphasis on debt achieved such 20% equity.
In subsequent general rate applications, UM has made submissions regarding disallowing specific costs.
However, UM’s position also sought to emphasize the need to control costs and build equity to have a
healthy NB Power in the long‐term. UM has been taking the long view, sacrificing small short‐term gains
for what it considered the better long‐term result. For example, in Matter 336,
[47] The 10‐Year Plan decreased the continuous improvement target in the period 2018 to 2027
by $211 million, compared to the previous plan. Ms. Clark testified that savings are taking longer
to materialize than what was originally anticipated.
[48] Mr. Stewart, counsel for J.D. Irving, Limited, argued that NB Power has an obligation to its
ratepayers to control its costs. Mr. Stoll, counsel for Utilities Municipal, supported and
encouraged NB Power to find efficiencies and to continue to improve its operations. However,
he noted that “any approach to cost cutting should seriously be reviewed so that short‐term
improvements in the debt to equity ratio are not given preeminence over having a healthy
company in the long term.”[10]
[49] The Board agrees that NB Power must continue to focus on continuous improvement
initiatives to increase productivity and reduce costs.16
In that proceeding, the company acknowledged cost control and savings were taking longer than
thought. Interveners were and continued to be legitimately concerned about costs, cost control and the
overall financial position of the company. For New Brunswick to fully succeed, NB Power needs to be
financially stable and efficient.
Once again in Matter 458, just three years ago, the last time the utility was before this Board for a
General Rate Application, cost control was again a focal point of concern. In the Board’s Decision, it
stated:
[112] Mr. Madsen, in his written evidence, made several recommendations where, in his
view, efficiencies may be found. Many of these recommendations are very valuable on a go
forward basis.
[113] Mr. Stoll, when commenting on the mandate letter, states that this directive now
“…requires extra focus on cost control” and that “…it doesn’t appear there has been any
meaningful change taken by NB Power in its approach.”
[114] In his closing argument, Mr. Christopher Stewart, counsel for J. D. Irving, Limited,
acknowledged that controlling and reducing costs is complex and “excruciatingly difficult.”
He submitted that, although not all of NB Power’s costs are directly within its control, difficult choices need to be made. He submitted that choices are not being made to the extent
that is required in the current environment.
[115] Mr. Stewart also argued that NB Power must do its part and control its costs submitting
that: “…if they are doing good, then they must be great. And if they are doing great, then
they must be excellent.” He recommends that the
… Board direct NB Power to begin focusing on its costs first before revenues. By
costs, I am referring to both operating and capital costs. Rate increases should only be
approved after all reasonable efforts to mitigate costs have been exhausted by NB
Power. A renewed focus on cost control and restraint is required.
[116] The Board agrees. NB Power must find a way to stay within its budget and reduce its
costs. The utility must stop overspending on items within its revenue requirements that are
within its control. It does not appear there has been any meaningful changes taken by NB
Power in its approach to control costs or reduce debt. Only modest improvements have been
seen on debt repayment.17
In Matter 513, just a few months ago, UM cross‐examined witnesses regarding the progress on
improving the debt:equity ratio and cost control. During Matter 513, UM again sought information to
understand what has changed at NB Power that would give this Board, ratepayers and interveners some
confidence that control was a priority at NB Power and that NB Power could better manage its spending.
The Board referenced UM’s position at:
[102] Mr. Stoll submitted, however, that NB Power might continue to fail to achieve its 10 percent ROE. He stated that the approach to spending by the utility seems to be backward as there is inadequate control on some of the utility's costs. He submitted that the utility is not operating within a spending envelope to ensure the return is earned. He stated that if the utility cannot manage its spending within the amount available to ensure that an appropriate level of return is available in future test years, it is inconsistent with the objectives set out in section 68.
In his view, it seemed that ratepayers are an endless source of funds.18
Again, UM was urging cost control but not at the risk of depriving the utility of the necessary return. The
Board, also concerned about the cost control by NB Power, stated.
[105] The Board is also concerned about actual costs being higher than initially anticipated and
the impact higher costs will have on future net earnings and rates. Rates have been set based on
a revenue requirement designed to recover an ROE of $25 million. Going forward, the Board will
monitor NB Power's financial results on an annual basis to determine if this is occurring.19
The evidence is clear that NB Power has not made meaningful progress on controlling costs and building
equity in the past. It is this past performance that informs and supports the skepticism of Interveners.
In the present Application, NB Power has been very clear that this year’s return is insufficient to make
meaningful progress in paying down debt, as it was legitimately concerned about the level of impact on
ratepayers. It appears a utility of the size of NB Power should be targeting between $80 and $120
million per year in net income. Because of cost pressures, including fuel prices, NB Power has sacrificed
progress on debt repayment to mitigate what would have been a larger rate increase.
However, despite the re‐commitment of NB Power, given the history above UM remains very concerned
that NB Power has not made the difficult choices nor installed sufficiently improved cost control
management and oversight to give comfort that it will achieve the 80:20 debt:equity in 4 years as set
out in the Minister’s Mandate Letter.20
In cross‐examination, NB Power was asked about the transmission capital expenditures. It was
acknowledged the capital expenditures for the transmission facilities was established prior to the Board
issuing its decision in Matter 513. In that hearing, the Board denied certain revenue requirement.
When asked whether the company revisited the capital program in light of the Board’s decision, the
witness panel was not aware of any review. 21
In our submission, when a regulatory body has expressed concern about a utility’s spending and went so
far as to disallow revenue, it would be reasonable for the utility to review its forecast spending in light of
the Board’s Decision.
While we acknowledge the efforts of PWC to review NB Power’s operations and identify cost savings, NB
Power has yet to accept such recommendations as the report to the Board of Directors has not been
made. Nor do we know the implementation costs of such recommendations. We view these savings as
a beginning of a reinvigorated effort to control and save costs. An effort that must continue with the
aim to offset requirements for future increases.
Our concern is that to effectively manage the business, NB Power should understand both the customer
trends and the drivers of such trends. In response to Undertaking 26,22 NB Power actual Residential
customer count was approximately 1% higher than the forecast for the current year. It was
acknowledged by Mr. Clark that there had been an unusual increase in population. While he correctly
indicated that there is not a 1 for 1 relationship between population and customer growth, no
explanation for the variance between forecast and actual customer counts was provided.
Another knowledge gap was the dramatic departure from the prior trend for the GS I and GS II forecast.
GS I had shown 8 years of relatively steady growth of approximately 1%.23 However, for the current
year a small decrease was forecasted, and for the Test Year NB Power is forecasting a reduction of 8% in
20 NBP the number of GS I customers.24 GS II, a closed class, has historically seen a small reduction in the
number of customers. It was felt that many of these customers were migrating to the GS I class.
However, in the Test Year, the GS II reduction was even more significant ‐ an almost 18% reduction in
the forecast number of customers. With such a dramatic shift, UM would have expected some analysis
or investigation to understand what was transpiring. However, Panel G indicated that this was the result
of the econometric model and could not provide further explanation as to what was occurring in their
customer base.
It is for these reasons that our hope and optimism of improved performance is clouded with skepticism.
Specific Adjustments to the Revenue Requirement
Now, in that view, UM has considered the evidence presented and (i) accepts the listed components of
the $50 million in savings identified; and (ii) has identified certain concerns with the revenue
requirement below. These measures should ensure that NB Power can exceed the forecasted $50
million in savings.
Bayside and Section 107(1) of the Electricity Act
In this Application, NB Power described that Bayside Generating Station was shut down in January 2022
as the result of a gas turbine failure. It was stated in the evidence this project was originally scheduled
as part of a rebuild in 2023/24 but had to be advanced 1 year.25 During cross‐examination, NB Power
admitted the expenditures up to and including December 31, 2022, was no longer $48.5 million, but
rather, $54.5million and that additional costs were still be incurred.26 Additional evidence in crossexamination indicated that expenditures have not been closed off and it is expected this will only be done by March 31, 2023. NB Power acknowledged an application under section 107 would be
forthcoming.
The Electricity Act, section 107, requires NB Power to obtain approval from the NBEUB for projects
where the capital expenditure is greater than $50 million. NB Power has yet to make an application
under s. 107 of the Electricity Act. UM acknowledges that Section 107(4) permits NB Power to obtain
approval after the expenditure occurs and may give retroactive effect to such expenditures provided the
enumerated condition are met.
This gives rise to the legal issue: Can this Board include in the approved revenue requirement a project
that requires approval under s. 107(1) but for which no application has been commenced? In our view,
the answer to this question is “no”. These expenditures have not been found to be prudent and should
therefore not be included in the approved rate base of this utility.
While NB Power may eventually obtain approval under section 107, if the Board was to permit its
inclusion in the revenue requirement, it may appear to reasonable observers to bind the Board Panel that will actually consider the Bayside Generating Station section 107 Application. Further, granting
approval would not encourage pre‐approval applications.
We expect NB Power will raise the argument that this Project was originally budgeted at $48.5 million
and such amounts should be included in the revenue requirement. We have the following comments as
to why this Argument must fail:
Section 107(3) permits applications to be made for projects under $50 million and given the
estimate of $48.5 million, there should have been a real prospect about this project exceeding
the $50 million threshold. We note that NB Power has a history of over‐shooting its budgeted
costs. NB Power has further relied upon the volatility and inflation to justify its rate increase.
NB Power knew well before this oral hearing that it had spent more than $50 million and did not
lead evidence regarding this change or the need to obtain NBEUB approval.
Granting approval would have ratepayers pay for a project where NB Power has failed to come
into compliance with the requirements of the Electricity Act.
The variance accounts that are tracking fuel and energy will provide protection for the impact of
the outage of Bayside so the only risk to NB Power is the timing element related to the approval
of the capital expenditure.
As such, UM would submit the impact of the capital expenditure from 2022/23 should be removed from
the revenue requirement. Any related interest charges or incremental depreciation related to the
Bayside Generating Station from the Test Year should be removed. In response to Undertaking 1327, NB
Power confirmed that $3.3 million in depreciation related to the gas turbine project is included in the
Test Year. In addition, the incremental $0.42 million in depreciation related to the incremental $6.3
million in capital expenditures should not be recovered until the project is approved. This overspend
included $1.3 million in interest during construction. The original forecast amount of $48.5 million
would be subject to financing charges in the Test Year. While no amount of financing charges were
specified for this, a 3% interest charge on $48.5 million is approximately $1.5 million.
UM submits a recognized savings of $4.8 million should be attributed to the failure to have the project
approved. UM submits this should not be allowed until approval under s. 107(1) has occurred.
AMI Project
In support of our concern about cost control, we would also point to the cost over‐run in the AMI
project. In response to UM’s Interrogatory, NB Power admitted that it was expecting the AMI was going
to be $5.6 million more than the Board approved amount.28 Approximately $3.6 million is an increase in
OM&A. NB Power goes on to state that despite having a fixed price contract for the supply of meters,
the meter supply company has provided notice of a $2 million additional cost. In our view, without
better justification, approval of such monies by this Board would only serve to weaken NB Power’s bargaining position with the meter supply company. As such, UM submits this $2 million should be
removed from the revenue requirement.
UM acknowledges, that as a capital expenditure, the impact on the Test Year will be the less than the $2
million.
Increase in Residential Customers and Gross Margin
In response to Undertaking 26,29 NB Power provided a revised forecast for the residential rate class
which showed approximately 4,000 additional actual customers as compared to the forecast number of
customers in the current year. As such, it is reasonable to conclude that such additional customers will
continue through the Test Year. NB Power stated the additional gross margin for such customers is $2.3
million.
Operations, Maintenance & Administration
In our review of the evidentiary record, much of NB Power’s evidence must be accepted.
Mr. Madsen identified a number of savings and recommendations. In our view, UM submits the Board
accept the savings of $12 million associated with the vacancy rates identified at Table 730. In crossexamination by JDI counsel, the calculations by Mr. Madsen seemed logical and were not adequately refuted.
In addition, UM notes that PWC has identified several potential cost savings in less than 12 months.
From our review of the Charters, it appears savings of between approximately $38 million and $72
million could be achieved in that time. However, we do not know the implementation costs or the
coordination or resources to achieve such savings. NB Power has indicated that it has already
commenced a couple of such opportunities. Accepting a fraction of the savings, along with the savings
discussed above, will permit NB Power to exceed its $50 million targeted cost reductions.
UM submits this results in a further potential savings which could be used to contribute to NB Power’s
net income and lower debt.
Uniform Rate Increase
NB Power requested a uniform rate increase for all rate classes (excluding water heater rentals). We
agree that is appropriate in the circumstances. NB Power described its rationale for the request in its
pre‐filed evidence to avoid undue rate increases for certain rate classes.
25 Deferring the use of differential rate increases will avoid subjecting customers to rate
26 increases that are higher than the proposed increases which are already substantial relative
27 to historic increases. Doing so will also allow time for a more effective consideration of
28 differential rates in a future proceeding based on the evidence filed in Matter 529 and
29 subject to consideration by the Board.
This was confirmed by Panel G during cross‐examination. We agree with NB Power in this regard.
Differential rates would raise the very real possibility of rate shock. Another concern, is the recent
variability in information arising from the “reinvigorated” load research gathered since the beginning of
COVID‐19 Pandemic. This data shows significant movement in allocation factors and it is unclear how
transient or permanent such changes may be.
In our submission, should differential rates be a consideration in a future application, then the notice of
such a hearing should include a reference to the potential that different rate classes may be subjected
to different increases.
UM supports the imposition of a uniform rate increase.
The New Variance Accounts, PROMOD and Updating the Evidence
The Variance Account Regulation prescribes a regime to track certain revenues and costs against the
approved forecast of such costs. This comparison occurs on a monthly basis. As mentioned above,
ratepayers are assured that over time, the difference between forecast and actuals should be
eliminated.
Mr. Musco testified that his recommendation for an update to fuel and purchase power was to provide
the Board with the best evidence. He was concerned that the 7 months since locking in the forecasts on
June 7, 2022 was a considerable time and that there had been significant changes in many variables. He
acknowledged that the NB Power hedging likely mitigated the result of any change but continued to
submit that the updated forecast would have value. We agree there is value in having such updated
information. He acknowledged in cross‐examination that Nova Scotia updates the fuel and purchased
power forecast approximately 30 days prior to the hearing.
In UM’s submission the need for the most accurate forecast takes on increased importance in light of
the variance accounts. It is clear that NB Power must have net income to pay debt and increase the
equity thickness. We don’t think anyone can dispute that. The variance accounts have the affect of
tracking any unforecasted margin and removing such from the utility’s net income.
To illustrate the situation, NB Power has identified that since its original forecast in this proceeding was
prepared, it was successful in winning new supply contracts.35 NB Power confirmed that upon winning
the contract it secured the supply to lock in a margin on the sale of such electricity. However, those
volumes, costs, revenues and margin will not appear in the approved forecast. Therefore, any gains,
gains that we now know will occur, will be captured in the variance accounts even though we know they
will occur. As such no amount of margin earned can be made available for debt repayment.
We are concerned that NB Power’s historical practice has been to underestimate the export margin.
Prior to the existence of the variance accounts such margins would enhance net income (or reduce net
losses). In subsequent years, the Board would be able to balance the allocation of that through
managing the increase in rates. That exercise of discretion has been eliminated. We are concerned that
this limits the progress that can be made in debt repayment.
NB Power has objected to providing such an update, and as we understand, if an update is required, NB
Power takes the position that it must be a holistic approach to updating costs and revenues.
Cherrypicking savings is not permitted. UM agrees that the process must be fair to both the utility and
ratepayers. In an update, material changes in the forecast should be considered in their totality.
However, we know that NB Power runs approximately 7 different PROMOD analysis a year. It runs a
new model every quarter. As such, providing an update on fuel and purchased power does not appear
to be an overly burdensome task but the current hearing process would need to be amended to
accommodate such a process.
However, we are not suggesting that such an update would be performed in this proceeding. This
position is a result of the current stage of the proceeding and the amount of work that would be
required to be completed to do a proper update of the evidence. However, in future proceedings we
would suggest the Board make provision for such an update in the schedule and also move the filing
date earlier in the year.
In our view, the presence of the variance accounts should incent NB Power to file the updates in the
future. NB Power requires achieving forecasted net income in order to pay down debt, fund capital and
build equity.
In an era of 8.9% rate increases, the delay of a month can have a significant impact on the ability of NB
Power to earn its annual revenue requirement. However, NB Power is in control of its activities and
should it wish to ensure that rates are in place for April 1 then it should take the necessary steps to
ensure sufficient time to have the evidence properly considered and a Board decision issued.
This hearing covered a significant amount of evidence in an extremely short timeframe. We would note
that future applications may include applications for multiple test years given the change to Section
103(1) of the Electricity Act. We note that significant increases in rates are likely in the future.36 As
such, we submit the Board should revisit the filing.
Summary of Requests for this Board:
In conclusion, we would request this Board:
Reiterate the need for additional cost reductions, demonstrated cost control and debt
repayment.
Require the filing of the new strategic plan with the Board in the next General Rate Application.
Reduce the approved capital in the rate base by:
o $2million in respect of the AMI project;
o $54.5 million in respect of Bayside until approval is granted under section 107 is granted
by another Board Panel including the $3.3 million related to the increase in depreciation
associated with the new gas turbine.
Accept the $2.3 million in additional revenue from the additional 4004 residential customers.
Accept the following cost reductions:
o $3.3million in depreciation related to Bayside GS turbine replacement.
o 1.5 million in interest charges related to Bayside GS turbine replacement.
o $12 million in costs related to the vacancy rate calculation.
o Up to possibly $72 million less implementation costs, related to the identified savings
from PWC’s Cost Optimization Charters.
Order an earlier filing date for future General Rate Applications to ensure an expeditious, fair
proceeding including an update of fuel and purchased power and other costs but still permit
rates to be in place by April 1.
Confirm that it is the Board’s expectation that a revised version of PROMOD, or the appropriate
optimization analysis, should be made available 30 days prior to the oral hearing, along with a
summary of whether such information would cause NB Power to update other evidence or
impact the rate increase. This of course will need to be considered by the panel considering the
schedule at that time.
SUBJECT TO ANY QUESTIONS FROM THE PANEL, THOSE ARE OUR SUBMISSIONS.
UTILITIES MUNICIPAL
By Its Legal Counsel
Scott Stoll, LSO #45822G
Cherrypicker in me must that you for mentioning the mandate letter from the Minister and the the upcoming 529 Matter
I hear CBC News on the radio talking about the submissions made to the hearing today. Need I say I enjoyed reading yours the most?
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