A comprehensive review of N.B. Power mandated by the New Brunswick government has faced criticism from both the public and the review panel itself during public meetings in Fredericton. Duncan Hawthorne, a member of the review panel and former president of Bruce Power in Ontario, highlighted N.B. Power’s management deficiencies at a recent open session. He expressed disappointment over the utility’s inability to provide requested data on electricity production costs, emphasizing the importance of this information in assessing operational efficiency.
Hawthorne criticized N.B. Power’s organizational structure, labeling it as an “amorphous mass” that hinders transparency. To gain better insights, the panel has resorted to constructing its financial models to independently analyze N.B. Power’s operations without relying solely on information from the management.
The ongoing public consultations, including the recent meeting in Fredericton, have allowed panel members like Hawthorne to openly address N.B. Power’s challenges. Hawthorne reiterated concerns about the performance of the Point Lepreau nuclear generating station and suggested that the utility’s financial situation might be worse than portrayed due to inflated asset values. He emphasized the need for realistic expectations regarding selling off assets to alleviate debt burdens.
In addition, panelist Michael Bernstein questioned the necessity of a three percent surcharge on N.B. Power customers’ bills to cover past losses stored in a “variance account.” Bernstein highlighted the discrepancy in rates compared to neighboring provinces and raised doubts about the rationale behind the surcharge.
The public engagement also saw attendees expressing skepticism about the review’s effectiveness but gradually changing their perspectives. Residents like Randy Dickinson voiced their grievances and called for accountability within N.B. Power, signaling a growing demand for change and improvement within the utility.
