NB Power asks for 9.8% rate increase in 2024 and 2025

If approved by provincial regulators, the higher rates would mean an average increase of nearly $25 a month for residential rate payers.

NB Power is requesting a 9.8 per cent rate hike for residential customers in each of the next two years as it looks to find its fiscal footing.

The utility says the hikes are needed to meet legislated debt-to-equity targets by 2029, though CEO Lori Clark says she understands the impact the hike would have on customers.

“We’re trying to balance the impact on rates with the health of the utility and the reliability of our assets,” Clark said.

“We are doing this as quickly as we can to improve the financial health but we always have to be concerned about the impact on our customers.”

On top of the general rate hike, the utility is also as the New Brunswick Energy & Utilities Board (EUB) for a 3 per cent increase in its variance account, which asks ratepayers to cover past unexpected financial challenges. That means residential customers could see their bills jump by 12.8 per cent, which would mean an average increase of $24.53 on their monthly bills.

Green leader David Coon said the increases are the result of years of government meddling in NB Power’s rate requests. In a presentation to reporters the Crown corporation said that it’s rates have grown by an average of 1.69 per cent over the last 13 years, far below the growth in other jurisdictions.

“The chickens have come home to roost,” Coon said.

“They kicked things down the road, kicked things down the road as long as they could, and they’ve hit the wall. And so we see this application for high power rates.”