Premier Shawn Graham says he's willing to look at suggestions on how to improve the deal to sell NB Power. (CBC)Premier Shawn Graham has started the job of selling New Brunswickers on Hydro-Quebec's takeover of NB Power with a new YouTube video posted on the government's new Lower Rates website.
In the video, Graham talks about the short-term and long-term benefits of the proposed deal, including a five-year residential rate freeze.
'When the five years are up, power rates will only increase to keep pace with inflation, and new generation needs.'—Premier Shawn Graham
But he also acknowledges an important caveat.
"When the five years are up, power rates will only increase to keep pace with inflation, and new generation needs," he says.
Under the deal, Hydro-Quebec will supply New Brunswick with the same amount of electricity NB Power currently does, 14 terawatt-hours.
If the economy or the population grows to the point that Hydro-Quebec needs to add new generation, it will pass on the cost of that in New Brunswickers' power bills.
Concerns expressed
Opposition MLAs are accusing the Liberals of fudging the benefits of the deal to ratepayers.
A prominent public policy expert has also expressed concerns about the rates being tied to the rate of inflation following the five-year freeze.
Donald Savoie, an analyst at the Université de Moncton, says New Brunswick should negotiate a cap on long-term power rates to protect residential customers in case inflation spikes.
Graham says he's willing to look at suggestions about how to improve the deal to sell NB Power.
"We have put forward what we feel is the best deal for New Brunswickers, but we're looking forward to receiving input from other stakeholders," said Graham.
"We've set up a website. We want to hear what the questions are from New Brunswickers so we can answer them. We want the best deal for New Brunswickers."
Graham signed an agreement this week that would see Hydro-Quebec buy the majority of NB Power's assets for $4.8 billion. The deal is contingent on legislative approval in New Brunswick.
