Premier Shawn Graham and Quebec Premier Jean Charest announce the proposed sale of NB Power on Oct. 27. So far the New Brunswick public reaction to the deal has been largely negative. (CBC)

Energy Minister Jack Keir acknowledges the immediate public reaction from the provincial government's plan to sell NB Power to Hydro-Québec has been negative.

Keir said on Monday that the reaction does not surprise him, but he believes once people learn more about the deal opinions will change.

"I haven't lost one second of sleep on the business deal itself. I believe in my heart this is a great decision, a great business case for New Brunswick moving forward," Keir said.

"I've lost lots of sleep on the political side."

The New Brunswick government reached a memorandum of understanding with the Quebec government over the Hydro-Québec purchase of the majority of NB Power's assets for $4.8 billion, which would immediately erase the New Brunswick utility's debt.

Hydro-Québec would freeze residential rates for five years and then only increase them by the rate of inflation. Large industrial customers would have their rates reduced to the prices paid by Quebec's largest users, but those rates would not be frozen.

The rate savings contained in the deal are estimated to be worth $5 billion.

Since the Oct. 29 announcement, the reaction has been swift and negative.

An anti-NB Power takeover group on Facebook was started and already has more than 14,000 members, while one supporting the sale of the public utility has more than 200 members.

Answering questions

Premier Shawn Graham addressed many critical questions on a provincewide CBC News call-in show on Tuesday morning.

Graham was asked to explain why he decided to put NB Power up for sale after promising in the 2006 election campaign that he'd keep the utility in the public's hands.

"As a New Brunswicker today and as a premier, I did change my opinion. I'll be totally frank with you because this opportunity was too good of an opportunity to pass by our province for future generations," Graham said.

"You know, if your children are there in your home today, that means they're no longer responsible for $4.7 billion of debt that they did not build themselves."

In another attempt to explain some of questions about the proposed sale, the province released a statement on Monday offering a more detailed explanation of parts of the deal. Keir spent 20 minutes fielding questions from reporters on the subject.

Hydro-Québec won't pay taxes in New Brunswick after it takes over most of NB Power's assets, something Keir said was a trade-off that the government made as it negotiated the deal.

"What we've said is they're a Crown corporation very similar to NB Power and NB Power never paid taxes. And we could have charged taxes, there's no question about that. But that would have taken away from the less-expensive rates that residents and industry would have got," Keir said

"And it was a give and take, and we said, instead of that revenue going to the provincial government, let's keep it in the pockets of New Brunswickers."

Keir said he'll tour the province to promote the deal and continue to answer any questions about the deal.

But Keir only has about two weeks to do that full-time before the legislature convenes on Nov. 17.

The Opposition Progressive Conservatives have vowed to slow down the proposed legislative changes that would allow the utility's sale.