N.B. Power has officially requested an exemption from New Brunswick Energy and Utilities Board (EUB) review for the proposed natural gas generating station in Tantramar. The utility argues that due to a partnership with ProEnergy, the new facility should not be classified as a traditional capital asset but as a “right of use asset,” reducing risk for both N.B. Power and its customers.
The 400-megawatt plant is aimed at meeting rising electricity demand and balancing the increasing wind energy on the provincial grid. However, critics argue that the project is not independent enough from N.B. Power to avoid thorough scrutiny.
During the hearing, it was revealed that N.B. Power will have to recognize $95 million in capital costs on its books, including $70 million for transmission assets built by ProEnergy that will eventually be transferred to N.B. Power’s ownership.
Public intervener Alain Chiasson raised concerns about the project’s cost surpassing the $50 million threshold, indicating that a full EUB review may be necessary. Despite opposition from various groups, final arguments on the matter are set to be presented to the EUB on Friday.
The utility’s vice president of finance, Justin Urquhart, emphasized that the partnership with ProEnergy mitigates construction risks and places the responsibility for any long-term issues with the gas plant on ProEnergy rather than N.B. Power. The board will determine whether the project warrants a full regulatory review.
