N.B. Power Review Panel Highlights Affordability Concerns

The three-member panel responsible for reviewing N.B. Power has identified affordability as the primary concern among participants in an online survey regarding the utility’s future. The panel released its summary report, titled “What We Heard,” on March 10, 2024, following public consultations that concluded in December 2023. This 25-page document organizes feedback into six themes, reflecting a consensus that aligns with N.B. Power’s plans to construct a 500-megawatt gas and diesel plant in Tantramar.

Approximately three-quarters of the 3,200 respondents indicated “maintaining affordable rates” as their highest priority, surpassing other factors such as reliability, energy security, and the transition to clean energy. The report underscored “widespread anxiety about long-term affordability,” with many participants expressing concern over rising costs, specifically asking, “when will the increases end?” N.B. Power is currently proposing a 4.75 percent rate increase scheduled for April 2024 after implementing two consecutive years of nearly 10 percent hikes.

The report noted that many respondents called for stronger protections and suggested income-based billing options. While some participants appreciated the efficiency programs offered by N.B. Power, they pointed out issues such as long wait times to access these services. The utility’s rollout of smart meters has sparked mixed opinions. N.B. Power acknowledged in October 2023 that the number of customers rejecting smart meters was ten times higher than anticipated.

In a recent interview, panelist Michael Bernstein stated that while the group focused on listening to public input during the six-month consultation, they also aimed to address misconceptions. Bernstein highlighted a common belief among respondents that N.B. Power was offering bonuses to executives despite underperformance. He clarified, “As far as we can tell, N.B. Power is the only utility in North America that does not pay bonuses. There is no compensation that’s linked to performance.”

The panel also encountered a prevalent perspective that the declining costs of renewables could eliminate the need for gas plants. Bernstein, however, emphasized the panel’s stance that “wind and solar with batteries are not sufficient” to meet New Brunswick’s high winter peak power demands. He referenced N.B. Power’s decision to contract with ProEnergy to build the gas and diesel plant, stating, “We need something that can be available, that can ramp up quickly.”

Opposition to the Tantramar gas plant includes some energy system experts who argue that renewable sources, when paired with large-scale battery storage, could meet peak demands. Bernstein acknowledged the advancements in battery technology but stressed that planning must focus on current capabilities rather than future possibilities.

The “What We Heard” report hints at potential recommendations from the panel, though Bernstein emphasized that their role does not extend to micro-managing specific facilities or megawatt requirements. The panel’s focus will be on high-level policy and governance recommendations, identifying areas where N.B. Power can improve operational excellence.

Looking ahead, Bernstein indicated that the panel aims to streamline N.B. Power’s focus on its core business, recognizing that managing an electricity system is becoming increasingly complex as the utility navigates the need to refurbish and upgrade infrastructure while developing new generation capacity.

The final report, which will include recommendations, is expected to be released in March 2024. Bernstein noted, “After that, it’s up to New Brunswickers and the government to decide how far and how fast they want to push on them.”