A junior federal cabinet minister says Ottawa is closely watching the debate on the sale of NB Power to Hydro-Québec.

But Keith Ashfield, the minister of state responsible for the Atlantic Canada Opportunities Agency, said he isn't sure whether the federal government has the ability to intervene.

'It's questionable whether we have jurisdiction in it.'—Minister of State Keith Ashfield

"It's questionable whether we have jurisdiction in it, but overall we have to be aware of the impacts it will have on the province and Atlantic Canada," he said.

This week, Ontario Senator Lowell Murray called on the federal government to review the planned sale of the utility to ensure there are no barriers to inter-provincial or international trade.

"Ottawa has to get interested in this and get in the game," he said.

In October, the New Brunswick government announced an agreement to sell the majority of NB Power's assets to Hydro-Québec for $4.8 billion, which would immediately erase the utility's debt.

New Brunswick residential power rates would be frozen for five years and large industrial rates cut by about 30 per cent to match Quebec levels.

Sale of Candu division drawn into debate

Ottawa should also be interested in the proposed sale because of its role in atomic energy, Murray said. As part of the agreement, the Point Lepreau nuclear reactor would be transferred to Hydro-Québec once the $1.4-billion refurbishment project is completed in February 2011.

The federal Conservative government's plan to sell Atomic Energy of Canada Limited's Candu division, which builds nuclear reactors, such as Point Lepreau, was drawn into the fight over New Brunswick utility Friday at the legislature.

Premier Shawn Graham used it to challenge Progressive Conservative Leader David Alward.

"Does he agree with his federal leader to sell off Crown corporation assets in the energy sector? Because if he agrees with the federal government's plan, he has to agree with the provincial Liberal government's plan," Graham said.

Alward argued that Graham negotiated quietly with only one buyer — Hydro-Québec, while Prime Minister Stephen Harper is being more open.

"They're going to a public-tender process, or certainly looking at different options. That's a very different situation than what's taken place in New Brunswick," he said.

Provincial officials have said the sale of the Candu nuclear division shouldn't affect the refurbishment of Point Lepreau, which is being conducted by AECL and is about 18 months behind schedule.