NB Power moves to amend 9.6% rate increase

Many people in New Brunswick could be paying less for power this year thanks to a move by NB Power,although some residents could stillsee their bills go up.

On Tuesday NB Power amended a rate request made last month andasked that some of the increases be changed.

The utilityhadbeengranted a 9.6 per cent rate increase on the condition it justify that amount at hearings later this fall.

NB Power now says the two-thirds of residential customers who don't heat with electricity should only pay a 6.5 per cent increase.

Meanwhile, people who heat with electricity could face an average increase of 10.7 per cent.

The utility also says it wants large industrial customers to pay 10.6 per cent, but admits their rates are still subsidized even though the New Brunswick government has said the practice should stop.

In the evidence filed with its request was an admission bythe utility that it plans to charge large industrial customers just 91 per cent of what it costs to supply them with power.

That's a $30 million subsidy that contravenes provincial government policy.

In April New Brunswick Energy Minister Jack Keir said no group should be getting subsidized power rates, including the big users.

"What I've said very clearly from the start is that I believe NB Power should not be a social program," Keir said at that time.

Wednesday Keir reiterated his position on having no power subsidies, although he would not comment on NB Power's decision to give one to industry.

"My view would be let's let the process take place and we'll wait for the recommendations from the [Energy and Utilities Board]."

To make up the difference NB Power plans to continue overcharging commercial businesses for their power by between 19 per cent and 25 per cent, as well as a $40 million surcharge that will go straight to big industry to help keep their rates low.