NB Power applies for 4.75 per cent rate hike for 2026

NB Power is seeking a nearly five per cent rate increase for customers.

New Brunswick’s power utility is asking for a 4.75 per cent rate increase to combat its aging infrastructure and growing debt.

If approved, the increase would go into effect April 1, 2026 for all classes: residential and industrial. It would mean an average monthly bill would go up by about $10.90.

The rate application was filed to the energy and utilities board Wednesday afternoon.

It comes after three years of substantial rate hikes. In 2023, there was a 5.68 per cent hike, followed by 9.14 per cent in both 2024 and 2025.

But NB Power executives say these hikes are due in part after years of minimal increases.

The average increase between 2011 and 2022 was 1.35 per cent, which officials say impacted the utility’s debt repayment “up to $1.5 billion.”

The application also includes a rate increase forecast for the following years. That proposed increase is 6.5 per cent for both 2027 and 2028.

The utility’s debt sits at about $5.6 billion.

“We will see our debt increasing over the next while because of the significant capital investments that we have,” CEO Lori Clark told reporters Wednesday afternoon.

She said she understands some New Brunswickers will struggle with this rate increase.

“But we are at a place where, in order to continue to provide secure, safe, reliable electricity for New Brunswickers now and into the future, we need to deal with the infrastructure deficit that we have and the new assets that we need to bring on our system to deal with the increasing load in the province,” she said.

Utility signs deal with Ontario Power

NB Power executives say the Point Lepreau Nuclear Generating Station shutdown is having a big impact on the utility. It needs $253 million in upgrades over the coming year, including replacing critical motors and valves.

Recently, the utility signed a support services agreement with a subsidiary of Ontario Power Generation, which will start in December and continue until 2029. That partnership will provide nuclear expertise, like personnel resources, engineers and 24/7 nuclear oversight and monitoring.

The cost of that agreement is $26 million a year.

The current Lepreau outage “remains on track,” says Clark, to return to service in December.

The utility has already spent $565 million on upgrades to the nuclear generating station over the last three years.

New Brunswick Green Party Leader David Coon says these hikes are being driven by what’s happening at Point Lepreau.

“Premier Holt must be prepared to substantially increase the budget for energy efficiency programs and launch the promised solar retrofit program to offset the ever-increasing costs of electricity,” he said.

Energy Minister René Legacy didn’t offer comment on the rate proposal, only that he will be following what comes next, which is an energy and utilities board hearing on the application.

Application offers options for customers

In this rate hike application, the utility is proposing to give customers the ability to opt out of its smart metre program, but it will cost them $4.65 per month. Those customers’ metres will then be physically read every other month.

This application also includes the idea of offering customers – both residential and commercial – the assurance that they are only using clean or green energy. There will be a special rate for people who would like that option, set annually, to be discussed at the future rate hearing.

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