A Progressive Conservative MLA is predicting that the New Brunswick government is going to abandon the deal it made with Quebec to sell NB Power to Hydro-Québec.

Liberal Premier Shawn Graham has been shifting his rhetoric about planned changes to the deal, said Paul Robichaud.

"I will probably not be surprised to see the government pulling the plug on the MOU [memorandum of understanding] they signed last fall," he said.

'A few weeks ago, this was a deal for a lifetime...Now, it appears he's prepared to tear the deal up.'—Opposition leader David Alward

Graham has promised that New Brunswick will retain control over its energy when NB Power is sold to Hydro-Québec, but this week, he started talking about ownership.

"The ownership and control of our energy system has been an issue that's been paramount, and our government will address that," he said Wednesday in question period. "The ownership and control of our energy system will remain in New Brunswick."

Robichaud pointed to another comment Graham made during question period: "If any legislative requirements are needed, Mr. Speaker, they'll be brought forward to this chamber."

Any sale would require legislation, said Robichaud. And before Christmas, the Liberals said there would be legislation.

Opposition Leader David Alward also believes the deal is falling apart. "Is the sale of NB Power dead or not?" he asked in the House Thursday.

Graham's response was that the government is continuing to negotiate with Quebec and is listening to feedback from the public.

Outside the legislature, Alward told reporters he believes the government is just trying to save face.

"A few weeks ago, this was a deal for a lifetime. He said it was the best deal for New Brunswickers," Alward said. "Now, it appears he's prepared to tear the deal up. What's evident today [is that] he's not denying what's going on."

An aide to the premier told reporters that Graham had to attend an important meeting after the legislative session and could not meet with them.

Francophone association weighs in

Under the proposed deal, expected to be finalized in March, a majority of NB Power's assets would be sold to Hydro-Québec for $4.8 billion, which would erase the utility's debt.

Hydro-Québec promises to freeze residential rates in New Brunswick for five years and immediately cut large industrial rates by about 30 per cent to the levels paid by similar customers in Quebec. That component of the deal is worth an estimated $5 billion to NB Power customers, the government has said.

The Association of Francophone Municipalities plans to take a stand on the deal, said Edmundston Mayor Jacques Martin.

Association members met Wednesday night to discuss the issue, but want to review the memorandum of understanding more closely and hold more consultations before expressing their concerns to government, he said.

"Hopefully by the end of the month or at the proper time, we'll be able to sit down with the premier and the minister of energy and hopefully see if some of our recommendations should be inserted in the document."

The deal is complicated and will have widespread effect, Martin said.