Power rates increase Aug. 1, but they won't go as high as NB Power hoped

The price of electricity is set to rise across New Brunswick on Aug. 1, but not as much as NB Power had hoped.

Residential and industrial rates will go up 0.96 per cent

NB Power originally applied for increases of about two per cent. (Shane Fowler/CBC)

The price of electricity is set to rise across New Brunswick on Aug. 1, but not as much as NB Power had hoped.

The New Brunswick Energy and Utilities Board has approved a proposal to raise residential and industrial rates as well as rates for municipal utilities by 0.96 per cent beginning next Wednesday.  

Rates to commercial and institutional customers will go up even less — 0.4 per cent — to address a history of overcharging of that group that is to be gradually fixed over the next several years

NB Power originally applied last fall for an average two per cent rate hike to take effect in April, but following a long and controversial hearing in front of the EUB last winter and spring, several issues arose that caused the increase to be cut.

Lower average rate hike

In March, NB Power voluntarily proposed lowering the average rate hike to 1.5 per cent after receiving a substantial settlement from insurance companies over problems encountered nearly a decade ago during the refurbishment of the nuclear generating station at Point Lepreau.

Then last week, the EUB disallowed a number of NB Power's proposed expenditures this year as unnecessary — including withholding permission for the adoption of smart meters — and ordered further reductions in NB Power's proposed rate hike to reflect that.

On Thursday, NB Power sent a letter to the EUB, recalculating rate increases to comply with its order. The board  approved the new rate structure Friday afternoon. 

The new charges are not retroactive to April 1.

"The rate increases will recover 8/12th of the revenue increase for 2018/19," NB Power noted in its letter to the board.

About the Author

Robert Jones

Reporter

Robert Jones has been a reporter and producer with CBC New Brunswick since 1990. His investigative reports on petroleum pricing in New Brunswick won several regional and national awards and led to the adoption of price regulation in 2006.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.