The New Brunswick government has been promoting a savings of $1,400 for electric heat residential customers during the first five years of its deal to sell NB Power to Hydro-Québec.

But most people who heat their homes with electricity will save substantially less than that because they weren't included in the calculations, CBC has learned.

Premier Shawn Graham has cited the $1,400 figure repeatedly.

'That chart was developed using the average electricity usage of residential homes that heat their homes with electric baseboard heating.'— Energy Minister Jack Keir

The deal will "save the average home that heats with electricity about $1,400," he said during the Oct. 29 news conference announcing the deal.

"Approximately $1,400 in rate savings for individuals who heat their homes by electricity," he reiterated during the recent Liberal convention in Fredericton.

Leaflet misleading

A new government leaflet being distributed in mailboxes across the province promoting the sale also suggests savings in that range for people who heat with electricity.

A charts shows $97 in residential savings in year one of the deal, which eventually grows to $1,392 in savings over the five years.

But that figure requires a consumption rate of more than 27,000 kilowatt hours (kWh) of electricity, which is more than what most New Brunswick residents use, other government figures show.

Energy Minister Jack Keir contends the chart accurately depicts usage for people who heat with electricity.

"That chart was developed using the average electricity usage of residential homes that heat their homes with electric baseboard heating," he said.

But tens of thousands of electric heat customers were excluded from the chart — anyone who doesn't live in a single family detached home, Energy and Utilities Board figures show.

Those who live in duplexes, apartments, townhouses and condos, would have brought the average savings down substantially because when they're included with single-family home owners, the average consumption is only 22,000 kWh, according to the EUB figures.

Using all New Brunswick dwellings that heat with electricity, the average savings in year one is closer to $66, or 30 per cent less than the $97 being promoted. Over five years, their savings would be about $1,071.

For all dwellings that don't heat with electricity, but use oil or natural gas instead, savings would be less than $19 in year one, and about $470 over the five years.

And when all residential customers who use all heat sources are included in the calculations, seven out of eight will not save what the government claims, with the average falling about $500 short.

Under the proposed agreement, expected to be signed in March, Hydro-Québec will pay $4.8 billion for the majority of NB Power's assets, a sum that will wipe out the utility's debt.

Additionally, Hydro-Québec will freeze residential rates for five years and cut large industrial rates to the level paid currently by Quebec companies. The New Brunswick government values the rate savings at $5 billion.