Don't hold your breath on the outcome of NB Power's rate hearing

It could be a number of weeks yet before NB Power finds out whether it can raise power rates to customers and use some of that money to invest heavily in smart meters, according to the vice-chairman of New Brunswick's Energy and Utilities Board.

"There is a volume of documents that this panel needs to review. There is a large volume of transcripts," said Francois Beaulieu as he declared NB Power's marathon rate hearing finished late last week.

"It may take a month or two. I can't say how long it is going to take, but it is going to take some time. We will make every possible effort to have a decision as fast as we can."

The EUB heard final arguments in the rate case last Thursday, 92 days after opening statements were first heard in early February for what was supposed to be an 18-day hearing.

The two big issues to be decided by the board are whether NB Power should be allowed to spend more than $100 million to deploy smart meters to its entire customer base and whether a requested 1.5 per cent rate increase it has applied for is justified.

Smart meter criticism

Smart meters are capable of transmitting individual customer consumption data back to NB Power in real time, which the utility said will allow for a number of innovations in pricing and service and help it nudge customers to shift their peak electrical demand enough to avoid building new generators.

Participants in the hearing were split on that and other issues.

In its closing argument, NB Power's largest customer, J.D. Irving Ltd. urged the board to kill the smart meter investment and use whatever money that saves to reduce the rate increase.

"Spending at the utility continues to rise and rise and rise in the context where their sales are flat and their out-of-province sales are falling," said J.D. Irving lawyer Christopher Stewart.

"These increases in costs cannot and we would submit as the regulator supervising this utility, you should not allow to continue. The utility must learn to live within its means."

Debt problems

But others worried NB Power's debt level is dangerously high and urged the EUB to allow the rate hike in full even if the board ultimately rejects the smart meter plan or other proposed projects.

The province's three municipal utilities and public intervener Heather Black both argued NB Power needs to get its debt down quickly before major spending is required to rehabilitate the Mactaquac dam.

"Setting rates too high is unfair to ratepayers. I think we all understand that," said Black.

"But setting rates too low is also unfair to ratepayers, because they will be subject to suddenly higher rates if NB Power doesn't earn sufficient revenue to have the available equity ready when it is needed for upcoming capital investment."

Also making a final argument was anti-smart meter activist Roger Richard who reiterated his opposition to installing the devices province wide based on concern about the health effects of radio frequencies they emit. Independent intervenor Chris Rouse also spoke and opposed any rate increase for the utility suggesting a more efficient use of electrical generation resources could be used to lower costs instead.

Beaulieu said the EUB would try and reach decisions as quickly as possible

"I can reassure (NB Power) that even though some of the issues are complex, you will have our undivided attention for the next several weeks."