Financial Crisis at NB Power: Impact on New Brunswick

The publicly owned utility of New Brunswick, NB Power, finds itself in the throes of considerable financial tribulations. With a burgeoning debt of $5 billion, the power company’s financial instability is a cause of concern, as it accounts for nearly half of the province’s $12 billion debt. The anticipated refit costs of the main plants, estimated to run into billions, and an interest on the debt that is double the payment, are adding fuel to the fire.

Failed Attempts to Curb the Debt

In the past, the provincial government had made promises to wipe out the utility’s debt through annual payments. However, these assurances have failed to materialize into concrete actions, resulting in an unchecked escalation of the debt. A significant portion of this debt can be traced back to the Point Lepreau nuclear generating station, whose costly refits have strained the already beleaguered finances of NB Power.

Seeking Expertise from Neighbors

In an attempt to navigate their financial challenges, NB Power has sought counsel from Hydro One in Ontario, specifically on nuclear operations. Additionally, they have initiated discussions with Quebec Hydro regarding the refit of the Mactaquac Dam. Quebec Hydro, known for its operational efficiency and lower production costs, could provide valuable insights into managing the refit cost-effectively.

Debating the Role of the Provincial Government

These circumstances have sparked debates around the purpose of the provincial government. Critics argue that the government’s focus should not be on job creation, especially when it involves sustaining a utility that is contributing to a spiraling debt and operating less efficiently than a utility in a neighboring province. The article also hints at a previous attempt by former Premier Shawn Graham to offload NB Power to Quebec Hydro. However, this bid fell through owing to issues related to the Mactaquac Dam and strong political opposition, leading to a governmental shift.

Given the current situation, the author emphasizes the need to consider the sale of NB Power as a viable solution to alleviate the financial burden on the economy. While this idea is not without its opponents, the dire financial straits of NB Power necessitate immediate and effective measures. The future of NB Power hangs in the balance, with the potential consequences of inaction casting a long shadow over New Brunswick’s economy.