N.B. Power Review Panel Highlights Affordability Concerns and Gas Plans

The review panel assessing the future of N.B. Power has identified affordability as the primary concern of respondents to its recent online survey. Released on Friday, the summary report titled “What We Heard” follows a series of public consultations that concluded in December 2023. The 25-page document presents organized feedback across six themes, underscoring alignment with N.B. Power’s plans for a new 500-megawatt gas and diesel plant in rural Tantramar.

A significant finding from the survey of approximately 3,200 participants revealed that nearly 75 percent prioritized “maintaining affordable rates” over other considerations, including reliability and the transition to clean energy. Participants expressed widespread anxiety regarding long-term affordability, frequently questioning when rate increases would cease. N.B. Power is currently proposing a 4.75 percent rate increase for April 2024, following two consecutive years of nearly 10 percent hikes.

The report also highlighted calls for enhanced consumer protections and income-based billing options. While respondents acknowledged the value of efficiency programs offered by N.B. Power, concerns were raised about long wait times to access these services. The deployment of smart meters, intended to facilitate variable pricing, has drawn mixed reactions, as the number of customers refusing them has surged to ten times what N.B. Power initially anticipated.

In a phone interview, panelist Michael Bernstein emphasized the panel’s role in listening to public concerns throughout the six-month consultation period. He noted that misconceptions about N.B. Power, particularly regarding executive bonuses, were prevalent. Bernstein clarified that “as far as we can tell, N.B. Power is the only utility in North America that does not pay bonuses.”

The panel also addressed the perception that renewable energy could entirely replace the need for gas plants. Bernstein acknowledged a common viewpoint among participants advocating for a shift to solar and wind energy supported by battery storage. Nevertheless, he indicated that the panel operates under the assumption that these alternatives alone are insufficient, especially given New Brunswick’s peak winter power demands. He cited N.B. Power’s rationale for contracting ProEnergy to construct the gas and diesel facility in Tantramar, emphasizing the need for a reliable source that can quickly respond to demand.

While some experts argue against the necessity of the gas plant, suggesting that renewable sources combined with battery storage could meet demand, Bernstein pointed out that current battery technologies are still evolving. He stated, “Battery technologies keep on getting better, but we’re not in the science project mode,” suggesting that N.B. Power must make decisions based on existing capabilities rather than future possibilities.

The “What We Heard” report also hints at potential high-level recommendations the panel may issue. Bernstein noted that the panel is not positioned to dictate specific facility types or capacities but will focus on broader policy and regulatory suggestions. He indicated a desire for N.B. Power to streamline its operations and concentrate on core business practices.

The panel’s comprehensive review is set against a backdrop of increasing complexity in managing electricity systems, compounded by the need to refurbish existing infrastructure and develop new generation capabilities. Bernstein remarked on the panel’s broad mandate, stating they will explore all available tools and strategies to improve outcomes for residents in New Brunswick.

Final recommendations from the panel are anticipated in March 2024. After that, Bernstein noted, it will be up to the people of New Brunswick and the government to determine the pace and extent of any proposed changes.