N.B. Power wins long fight to raise rates 19 per cent over 2 years

N.B. Power has won approval to keep charging rates that it increased on customers by an average of 9.25 per cent on April 1, and to repeat the increase next April, with only minor modifications.

In an oral decision released Friday morning, the New Brunswick Energy and Utilities Board granted N.B. Power almost everything it asked forin an application the company launched late last yearto raise its rates significantly over two years.

The two increases ruled on by the boardinclude the retroactive approval of rate increasesawarded to the utilityon an interim basis last Aprilof an average 9.25 per cent, including 9.8 per cent forresidential customers.

A secondidentical increase, to take effect on April 1, 2025, was lowered marginally but only by a fraction of one per cent.

The board's ruling was delivered orally by utilities boardmember Christopher Stewart, who presided over hearings on the application during the summer. He said more detailed written reasons will be issued later.

"The Board is issuing this decision on an expedited basis to give ratepayers certaintyabout their electricity costs and to provide N.B. Power information necessary to plan its business and operational activities," said Stewart.

Although broadly granting N.B. Power most of the $320-million rate increase the utility requested over two years, Stewart noted a couple of exceptions.

He said a request by the companyto unify monthly service charges between rural, urban and seasonal residential customers has been rejected.

"The board orders N.B. Power to maintain the distinction between rural and urban residential customers," said Stewart.

That does not affect the overall value of the increase to the utility but it will require raising the current $28.27 per month charge on rural and seasonal customersby about $1.33 per month. That will be offsetby urban residential customers having their monthly service charge lowered by $1.29.

Stewart said the board will consider merging the three groups in a future "rate design" hearing.

In a second variance from N.B. Power's application, Stewart said the boardhad decided to approve 3.7 fewer "forced loss," or breakdown days, at the Point Lepreau nuclear generating station next year than the utility had requested.

Stewart said N.B. Power will have to calculate how much that change reduces the April 1, 2025, rate increase but it is unlikely to move it more than just tenthsof one per cent.

Residential customers may not feel that increase, however.Premier Susan Holt has pledged to try to drop the province's 10 per cent sales tax on residential electricity bills by April 1, close to the same amount residential rates are set to increase on the same day.

JDInot happy with board decision

In its ruling, the Energy and Utilities Board effectively rejected the arguments of several parties who participated in the rate hearing and had urged the board to slice deeply into the rate increase request.

Forestry company J.D. Irving Ltd., N.B. Power's largest private-sector customer and the operator ofseveral large sawmills and paper mills, sharply criticized the ruling.

"J.D. Irving Ltd. is very disappointed in today's decision by the New Brunswick Energy and Utilities Board," the company said in a news release.

"Current electricity rates have a massive impact on Irving paper's ability to compete."