Customers should anticipate ongoing rate hikes for the foreseeable future, according to N.B. Power’s CEO, as the company grapples with mounting debt. During a recent appearance at a legislative committee, CEO Lori Clark did not specify the duration of these increases or the projected debt levels in the coming years.
The utility’s recent announcement included a request for a 4.75% rate hike in 2026, with tentative plans for further increases of 6.5% in 2027 and 6.5% in 2028. Clark refrained from confirming whether future rate adjustments would align with the proposed rates for the next three years or veer closer to the nearly 10% increments seen in the past two years.
Clark mentioned that the $9 billion Mactaquac Dam refurbishment would not solely rely on borrowing but did not disclose the portion of this cost that will be added to the current $5.7 billion debt burden of the utility.
Progressive Conservative MLA Kris Austin expressed concerns during the meeting, highlighting that the utility’s debt has surpassed power rates significantly. He questioned whether the proposed rate increase for 2026 would still maintain relatively low rates when compared to the debt ratio.
Clarifying the utility’s financial situation, Clark noted that with the recent rate adjustments, N.B. Power is gradually catching up, indicating the necessity for continued rate hikes.
Regarding future rate adjustments, Clark specified that the rates for the next two years will be determined following the recommendations from an ongoing operational review of N.B. Power. This comprehensive review aims to address the utility’s financial sustainability amidst infrastructure investments while ensuring fair rates for customers.
While Clark sees the review as a potential source of solutions, she cautioned that the recommendations are not quick fixes for the utility’s challenges. Austin remains skeptical about the review’s outcomes, suggesting that the province may be using the process to soften the impact of its decisions.
In conclusion, the utility acknowledges the complexity of its financial situation and the time required to address it comprehensively. The ongoing review is expected to provide insights into managing the debt burden effectively while balancing the need for infrastructure investments and fair rates for consumers.
