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 for in an application the company launched late last year to raise its rates significantly over two years.

The two increases ruled on by the board include the retroactive approval of rate increases awarded to the utility on an interim basis last April of an average 9.25 per cent, including 9.8 per cent for residential customers.

A second identical 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 board member 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 certainty about 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 company to 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 customers by about $1.33 per month. That will be offset by 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 board had 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 tenths of 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.