N.B. Power’s CEO, Lori Clark, disclosed that customers should anticipate ongoing rate hikes due to the utility’s escalating debt situation. However, the exact duration and extent of these increases were not specified during Clark’s appearance at a legislative committee. The utility recently submitted a request for a 4.75% rate hike in 2026, with tentative plans for subsequent increases of 6.5% in 2027 and 2028. Clark refrained from confirming whether future rate adjustments would align with the proposed rates for the next three years or veer closer to the nearly 10% increments witnessed in the past two years.
Clark emphasized that the $9-billion Mactaquac Dam refurbishment would not rely solely on borrowing for funding, though she did not specify the portion of this amount that would add to N.B. Power’s existing $5.7-billion debt burden. Progressive Conservative MLA Kris Austin expressed concern during the meeting about the utility’s debt surpassing power rates and queried whether the proposed rate increase for 2026 would maintain rates at artificially low levels compared to the debt ratio.
Regarding the ongoing review into N.B. Power’s operations, Clark mentioned that the finalized rates for the upcoming years would be contingent on the recommendations stemming from that evaluation. She highlighted the review’s objective to establish a sustainable financial stance for the utility amidst infrastructure investments, while ensuring fair rates for customers. Clark acknowledged the review as a potential source of solutions but cautioned that the recommendations would not serve as instant fixes for N.B. Power’s challenges.
Austin remained skeptical about the review’s efficacy in providing new resolutions, suggesting that the process might be utilized to soften the impact of future decisions. He underscored the urgency of addressing the significant debt load and raised questions about its implications for ratepayers and taxpayers. Clark echoed a sentiment of gradual progress, emphasizing the time required to address the utility’s financial complexities.