NB Power defends rate increase at Energy and Utilities Board

Lawyers representing industry and the public ganged up on NB Power at the Energy and UtilitiesBoard onWednesdayto try tostop it from raising rates by twopercent,before it proves it needs the increase at a full hearing.

"There's a reason why we require a full hearing on the evidence and that's to test it properly, and make sure the increase is warranted," said Heather Black, the public intervener who urged the EUB to reject an earlyincreasefor theutility.

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NB Power wants to raise rates by twopercentonApril 1, but it applied for the increase onDec.28, too late to have the matter decided by spring.

The utility has been submitting evidence and answering questions about the application all winter and has a full hearing into the applicationscheduled forMay 9.

Given that schedule, a decision from the Energy and Utilities Boardon the application isn't likely untilJuly 1.

NB Power says waiting that long will cost it $3.8 million in lost revenue andWednesday, the utilityasked the EUB to let it raise rates onApril 1in advance of the May hearing.

NB Powerpromised to pay the money back if the application is ultimately unsuccessful.

John Furey, the lawyer forNB Power,said the utility isfalling behind in its aggressive 10-year financial plan to retire debt and needs all the money it can raise.

"We are behind in that goal.Every dollar matters," said Furey.

"What NB Power is required to show [for an interim increase]is harm.And there is harm," said Furey.

But Heather Black for the public, andChristopher Stewart forJD Irving Ltd.,both argued NB Power caused its own problem by filing for the rate increase too late, and is not entitled to relief from that mistake.

"There's only one reason.They didn't apply in time," said Stewart.

Ray Gorman, the EUB chairman,said the board would deliver a decision byMonday, at the latest.