NB Power could be allowed to seek financing elsewhere

The New Brunswick government is proposing changes to the Electricity Act to allow NB Power to access other sources of funding.

According to the Minister of Natural Resources and Energy Development, Mike Hollandthese proposed amendments could allow the Crown corporation to enter into partnerships with other entities with respect to existing and future generating assets.

This would allow you to be more flexible and take advantage of other offers that could be offered.said the minister.

The minister adds that this could involve concluding agreements with third parties, such as the Canada Infrastructure Bank or even Ontario Power Generation (OPG), a Crown corporation that has already held talks with NB Power in 2023.

When asked if NB Power could enter into financial agreements with private companies, the minister does not reject this option.

The utility is required by law to obtain the least expensive option for users or taxpayers. These changes to the law would provide the ability to borrow from sources that would allow it to meet this criterionhe said in a press scrum on Wednesday.

It’s all in the details

For the opposition, these changes to the Energy Act are not a surprise. The opposition spokesperson for Energy, René Legacy, however, wants to obtain more precise details from the minister.

We create policies to open up opportunities, but it doesn’t really give us the strategy where we’re goinghe said.

He certainly plans to ask questions, but a priori, the idea of ​​having more flexibility for NB Power is perhaps desirable, in the current economic context.

We also know that NB Power does not have many options on the table. Their ability to borrow is very limited at the moment, so it will take capital to resolve certain infrastructure situationsadds René Legacy.

Towards a sale of NB Power?

For his part, David Coon he also wants to know the details of the bill, especially on the conditions of borrowing from third parties.

I’m not surprised to see the bill. Will this benefit New Brunswickers? We need to examine the details of the billhe said.

David Coon said he was concerned about the impact of other sources of revenue on electricity rates for consumers.

He also believes that these changes to the bill call into question the sovereignty of the state corporation, that is, the government’s control over its electricity system.

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The possible arrival of private investment is worrying according to the leader of the Green Party who would like the CEO of NB Power, Lori Clarksets out its vision of the future more clearly.

This is a very important issue, which is one of the reasons why I have a lot of concerns with the bill. We have to [avoir] details for acceptable investment sources.

David Coon said he had heard that a delegation ofOntario Power Generation would come to visit New Brunswick this week.

The former premier of New Brunswick, Shawn Grahamhad reached an agreement with Quebec on the sale of NB Power assets to Hydro-Quebec in 2009. At that time, NB Power’s debt exceeded $4 billion and the infrastructure was aging.

Following a strong opposition movement, this agreement was canceled in 2010.