Province removes NB Power’s debt target date in effort to stabilize rate increases

The provincial government has removed the target date for NB Power’s debt goal.

Two years after the Progressive Conservative government granted NB Power an extension to meet its debt goal, the Liberals have removed the target date in an effort to stabilize rate increases for customers.

NB Power, which has a debt that sits around $5 billion, had a deadline to reach a goal of 80 per cent debt to 20 per cent equity, which the previous government extended to 2029 in 2023. The Liberal government removed that deadline on Wednesday.

“The requirement to meet the 2029 equity target was the single biggest factor driving potential double-digit rate increases over the next few years,” said Finance and Treasury Board Minister René Legacy, who is also the minister responsible for energy, in a news release.

“Although this requirement has existed for over a decade, very little progress has been made. We recognize that, rather than setting unattainable targets, we need to see the utility taking meaningful and measurable action.”

NB Power raised residential rates by 9.7 per cent last April, which was the same increase that was applied last year.

Legacy said the removal of the deadline will allow NB Power to lower required net earnings, which in turn will lower the rate increase for a given year.

NB Power will present a three-year plan on how it will make progress on the 20 per cent equity target by Oct. 1.

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