Energy and Utilities Board approves NB Power rate hike

NB Power’s latest rate hike has received approval.

NB Power’s request for a rate increase in 2026-27 has been approved by the New Brunswick Energy and Utilities Board (EUB).

NB Power filed an application for a uniform rate increase of 4.75 per cent in October, saying it was needed to address growing debt and aging infrastructure within the Crown corporation.

“The Board approves uniform rates for the fiscal year ending 2027 as proposed by NB Power,” wrote the EUB in its decision released Wednesday.

The EUB held public hearings in March considering NB Power’s rate application, where it also heard calls for the utility to operate at a reduced budget following a string of repeated cost overruns. NB Power officials argued several cost factors were out of its control, including severe weather and unplanned outages at the Point Lepreau Nuclear Generating Station.

In its decision, the EUB said it “cannot arbitrarily reduce rates to punish the utility for past shortcomings.”

“Preventing NB Power from recovering costs where the evidence demonstrates those costs are prudent would harm ratepayers by leading to higher rates in the future or creating unacceptable reliability and safety risks,” said the board’s written decision. “For better or worse, NB Power’s current financial circumstances cannot be ignored.”

The board previously rejected NB Power’s request for an interim rate order to recover revenue from any rate increase implemented after April 1.

NB Power CEO Lori Clark said the utility would review the EUB’s decision to determine when the rate increase would come into effect.

“I’m hoping it’s sometime in April, but we just got the decision a couple hours ago and we’ll take the time,” said Clark. “We have to get back to the EUB and understand what was allowed and what they didn’t allow in the decision, and from there we’ll decide the timing of the rate increase.”

According to NB Power, the average residential customer using 1,350 kWh/month will see a rate increase of about $10.90 a month.

Randy Hatfield, executive director of the Saint John-based Human Development Council, was an intervenor at the March public hearings and said the decision shifted the onus of energy affordability back to the provincial government.

“They’ve flipped this back and forth over the years, but we have a very clear decision on the part of the regulator that they are unable, as currently legislated, to introduce any affordability measures,” said Hatfield. “Our advocacy efforts now will lie with the province to try and get them to introduce something like a low-income rate rebate or to enhance more fully its demand and supply management programs for energy efficiency.”

For more New Brunswick news, visit our dedicated provincial page.