NB Power's $64M 'political' costs detailed in rate hearings report
Figures filed to Energy and Utilities Board strip away politically imposed costs
Electricity customers are getting closer to finding out what the total amount of politically imposed costs on NB Power are, although the public may never see the final amount.
Preliminary calculations, reported to the Energy and Utilities Board (EUB) as part of NB Power's current rate hearing, suggest NB Power could be providing electricity to customers for $64.1 million less than it does, if not for a variety of requirements imposed on it, mostly by the legislature.
However the utility has requested that an updated estimate of that $64.1 million amount be kept confidential, raising the likelihood the public will never know the full cost.
The EUB and its chairman, Raymond Gorman, were challenged by NB Power critic and self-represented intervener Greg Hickey during last year's rate hearing to dig into the issue.
This year, they did just as Hickey asked.
"My observation, Mr. Chairman, is that decisions in this province get made in the halls of power based on political influence, and I don't think sufficient in-depth engineering technical analysis gets done on the making of the sausage," Hickey told the EUB in his final comments last June.
Hickey then asked that NB Power be allowed to pretend it wasn't stuck with a number of costly long-term contracts imposed on it over the years so it could compare prices it pays to what it could generate on its own or buy in the open market.
He called it a "real economic dispatch."
"Take the cuffs off and let the professionals at NB Power who know what to do, do their job," said Hickey. "And let's find out what the political burden is on this utility."
Hickey is not participating in this year's rate hearing, but the EUB picked up on his request and had NB Power do as he asked as part of preparing its evidence for this year's hearing, which begins in May.
"Please complete a 'real economic dispatch' for 2016-2017, as described by Mr. Hickey during summation for Matter 272," requested the board as part of a series of written questions to NB Power.
NB Power came back with a report showing it could save an estimated $64.1 million next year if, among other issues, it weren't forced to:
- Accept power from provincial wind farms when cheaper alternatives are available.
- Buy renewable power from large industry and sell it back to them at nearly half the price.
- Take all of the electricity from two natural gas generators at the Irving Oil refinery, no matter what the price.
Figures incomplete
The EUB wasn't completely satisfied with that answer. It asked for additional calculations that assumed NB Power wasn't tied into one other long-term contract.
Although NB Power supplied an updated estimate last week, it has requested the new total be kept confidential.
Greg Hickey did not immediately respond to a request to be interviewed on the ongoing impact his appearance last year is having, but Chris Rouse, who also attended last year's rate hearing as a self-represented intervener, applauded the EUB for not letting go of the issues raised by Hickey.
"I think they're really demonstrating that they're listening," said Rouse. "This is something that concerns all New Brunswickers, not just Greg Hickey. It took a lot of courage for him to get up and do what he did and so I think they (the EUB) appreciate that."
NB Power had no immediate comment on the information it supplied to the EUB on Hickey's question, but said it welcomes individuals like Hickey and Rouse involving themselves in its hearings.
"This is a wonderful way for NB Power and the EUB to learn more about what customers care about and how we can improve our business to their benefit," NB Power spokeswoman Deborah Nobes stated in an email to CBC News.
"We are very supportive of the process because it allows individual customer voices to be heard along with groups who may be represented by other types of interveners."
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