NB Power has filed a request to increase electricity prices by 9.8 per cent with the New Brunswick Energy and Utilities Board (EUB).
Two separate filings have made to the EUB relating to rate pricing that could lead to significant hikes in electricity prices in 2024
The filings from NB Power include a General Rate Application asking for a 9.8 per cent increase to residential rates, as well as a Variance Account Recovery asking for a three per cent increase over 12 months.
The move could result in electricity bills increasing by $18.72/month on usage next year, and a further $5.81/month for 12 months via the planned theee per cent.
“We understand that raising rates is not something anyone wants, particularly when customers are already paying more for their everyday needs like housing, gas and groceries,” said Lori Clark, president and CEO of NB Power.
“However, to continue to provide the reliable electricity customers need in the face of unprecedented challenges and change, an increase in rates is required to meet customer demand and prepare for the future. This is not business as usual.”
NB Power Price Increase Electricity Prices For Residential Customers
The new two-year General Rate Application has been made to provide New Brunswickers with as much predictability as possible in the years to come.
It is based on the projection of costs for the 2024/25 and 2025/26 budget years and if approved will see a 9.8 per cent increase in year one and a second 9.8 per cent increase in year two for residential customers.
NB Power made the rate increase request due to inflation and market prices as well as provide funding for improvements in reliability and performance at the Point Lepreau Nuclear Generating Station.
NB Power has also submitted its annual Variance Account Recovery filing as required by the Electricity Act.
This represents a calculation of actual reasonably incurred costs and revenues versus what was projected, and is based on the balance of the account as of a particular date.
For this particular filing, actual costs came in higher than anticipated due to a number of factors, primarily an unplanned outage at the Point Lepreau Nuclear Generating Station.
As a result, based on the account balance, this filing asks to apply a three per cent rate increase over 12 months. Last year, customers received a 0.9 per cent rebate for 12 months.
Cost Of Electricity In New Brunswick
New Brunswickers are currently paying the lowest residential electricity rate in Atlantic Canada.
Even with the potential rate increase, N.B. will still have a lower rate than Nova Scotia and Prince Edward Island and will remain among the lowest in Eastern Canada and the U.S.
NB Power’s planned investments in infrastructure and generating station reliability as well as cost-effective energy sources will provide increased energy security now and into the future.
A stronger investment in energy efficiency will help New Brunswickers manage their energy usage.
With increased spending identified for outage prevention and response and the continued mass deployment of smart meters, customers will continue to enjoy a reliable energy supply.
NB Power will also improve its customer care to offer a better customer experience.
“We are leaving no stone unturned as we look at every aspect of our operations and make the necessary changes to manage our costs and improve our financial situation, build equity and keep rates as low as possible for New Brunswickers,” said Clark.
“In the last year, NB Power cut approximately $50 million from its operations and there will be more sustained cost reductions this year. However, it will not be enough to offset the rising cost of producing energy to meet the needs of New Brunswickers.
“The decision made by the New Brunswick Energy and Utilities Board on today’s two filings related to rate pricing will greatly impact our ability to respond to the utility’s needs of today and prepare for the future.”
Both applications will go through independent, rigorous review processes by the EUB, giving customers and others an opportunity to offer feedback.
The timeline for hearings and subsequent decisions and implementation timelines for both matters will be determined by the EUB after the filing is made. The potential new rate would come into effect no earlier than April 1, 2024.
NB Power offers many programs to help New Brunswickers manage their energy use and costs by making their homes and businesses more energy efficient via the saveenergynb.ca portal.