N.B. Power Rates Examined

NB: Electricity ratepayers to be better protected
By Staff, Transcontinental Media

Source: The Daily Business Buzz, Jul. 28/10

[SAINT JOHN, NB] – The provincial government is making a number of improvements that will better protect electricity ratepayers. Energy Minister Jack Keir, in making the announcement, said the changes will strengthen the regulatory framework of the New Brunswick Energy and Utilities Board (EUB).

“The New Brunswick government wants to ensure the EUB is equipped with the necessary tools to safeguard the interests of New Brunswick electricity ratepayers,” Keir says. “Combined with the recent decision to reintegrate the utility into a single company, these changes will mean NB Power will be a more transparent and accountable utility.”

Keir announced five key changes:
• all electricity rate increases, regardless of size, will need to be approved by the EUB;
• an appropriate form of regulatory oversight will be introduced for municipal utilities;
• cabinet will no longer be able to reverse or modify an EUB decision dealing with rates;
• utilities will be required to file annual capital spending plans to the EUB and obtain pre-approval from the board for projects that exceed certain spending limits; and
• the EUB will follow new policy objectives. They include reconciling the public interest, ensuring consumer protection and fair treatment of utilities, promoting sustainable development, promoting fiscal responsibility, promoting energy efficiency and promoting the use of electricity from renewable sources.

These changes were announced following public consultations that included the release on June 15 of an options paper, The New Brunswick Energy Regulatory Framework Options for Improvement. A review of those consultations, The New Brunswick Energy Regulatory Framework Options for Improvement – Summary of Written Submissions, was released yesterday. Both documents are on the Department of Energy website. The suggestions made in the summary document will help form the necessary legislative amendments to be introduced this fall.

“All electricity ratepayers in New Brunswick should feel absolutely secure knowing that any electricity rate increase has been thoroughly reviewed and found to be warranted by an independent board,” Keir says. “The EUB has demonstrated the necessary level of expertise, experience and independence to make well-reasoned decisions that affect both utilities and customers. Creating a stronger EUB means more protection for consumers.”