NB Power customers could be on the hook for $384 million in deferred electricity costs accumulated by the utility, according to a new report from the auditor general. The report found NB Power’s rate rider – which allows differences between forecasted and actual electricity sales and energy supply costs to be collected from customers down the road – helps reduce the impact of cost overruns, but also means future ratepayers will be footing more of the bill. “Customers are already paying these deferred costs through a separate variance account charge on their monthly electricity bills,” a news release reads. “As the balance has grown, the approved recovery period has also increased from two years to eight years, extending how long these costs will remain on customer bills.” Auditor general Paul Martin found the rate rider that growing recovery period could cause financial headaches for future ratepayers. The report also noted this approached increased NB Power’s net earnings by roughly $384 million, but it continues to fall short of its financial targets. “NB Power must improve its operating performance and limit further growth in the balance,” Martin said. “Otherwise, future ratepayers could face added costs for many years.” For more New Brunswick news, visit our dedicated provincial page.
