New Brunswick Power’s CEO stated that customers should anticipate ongoing rate hikes due to the utility’s increasing debt. During a legislative committee appearance, CEO Lori Clark did not specify the duration of these increases or the projected debt accumulation in the coming years.
The utility recently proposed a 4.75% rate increase for 2026, with tentative plans for subsequent increases of 6.5% in 2027 and 2028. Clark refrained from confirming if future rate hikes would align with these proposed percentages or trend closer to the nearly 10% increases seen in the past two years.
Regarding the $9 billion Mactaquac Dam refurbishment, Clark mentioned that not all funding would come from borrowing but did not disclose the exact amount to be added to the current $5.7 billion debt load.
Progressive Conservative MLA Kris Austin expressed concerns about the utility’s debt surpassing power rates. He questioned whether the proposed rate increase for 2026 would suffice to balance rates against the debt ratio. Clark acknowledged that while recent rate adjustments have helped N.B. Power catch up, additional rate hikes are essential.
Clark highlighted that finalizing rates for the next two years hinges on recommendations from an ongoing operational review of N.B. Power. She emphasized the review’s goal to enhance the utility’s financial sustainability amid infrastructure investments while ensuring fair rates. Despite optimism regarding potential solutions from the review, Clark cautioned that it would not provide instant fixes.
Austin remained skeptical about the review’s effectiveness, suggesting that the province might be using it to soften the impact of upcoming decisions. He emphasized the urgency of addressing the substantial debt load and questioned whether it would burden ratepayers or shift to taxpayers through provincial debt absorption.
