‘Sometimes I lose sleep’: NB Power says it’s trying to find solutions for $6 billion debt

NB Power's CEO says she loses sleep the utility's debt problem in a legislative committee hearing.

NB Power executives told a legislative committee Friday that they’re “racking our brains” trying to find solutions to combat the utility’s almost $6 billion debt load.

The Crown corporation has been under fire for its debt and the number of large refurbishments needed on its assets, including the Point Lepreau Nuclear Generating Station and the Mactaquac Dam.

“Sometimes I lose sleep at night thinking, what do we have to do tomorrow? But we didn’t get here overnight,” NB Power CEO Lori Clark told the committee of MLAs in response to a question about the utility’s debt.

Clark pointed to a decade of little-to-no rate hikes, saying those decisions – often made by previous governments – are partially to blame for why the debt has ballooned.

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.”

It’s led to substantial power rate increases in recent years.

In 2023, there was a 5.68 per cent hike, followed by 9.14 per cent increase in both 2024 and 2025. The utility is asking for another 4.75 rate increase in 2026, and possibly 6.5 per cent in both 2027 and 2028.

“Definitely it is a challenge for the organization and it’s a challenge for our customers and we all know the status quo is not an option,” Clark said.

MLA Kris Austin asked what the utility’s plan is.

“Money doesn’t just appear out of nowhere and debt ratios don’t just disappear out of nowhere,” he said. “The challenges cannot be underestimated … somebody has to pay the bill.”

Austin also asked about the status of the Mactaquac Dam refurbishment project.

Clark said it will be upwards of $9 billion but spread over 15 years. She said the work will be done piece-by-piece, so the dam doesn’t have to be fully shuttered for any length of time.

Point Lepreau another factor in rising debt

When Point Lepreau is offline, it costs the utility $1 million-to-$1.5 million a day. That’s due in part because the utility has to find and pay for replacement power, and for the repairs the nuclear plant needs.

The generating station was only operating 27 per cent of the time during the 2024-25 fiscal year.

This year, Point Lepreau went offline for maintenance in mid-July, and won’t return to service until early December, Clark said.

During a technical briefing with reporters on Oct. 1, utility executives said Lepreau 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 is supposed to 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 utility has already spent $565 million on upgrades to the nuclear generating station over the last three years.

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