Graham defends NB Power deal delay

New Brunswick Premier Shawn Graham is defending his government's decision to extendthe deadline for finalizing the NB Power deal with Quebec.

Graham saidWednesday he's still aiming to close the deal by the end of March butsaid the Liberal government may need more time to fully "engage" New Brunswickers in the proposed power pact.

Until this week, the Graham government had insisted the proposed agreement to sell several NB Power assets to Hydro-Qubec for $3.2 billion had to be done by the end of March to avoid a three per cent power rate increase that was planned by the power corporation.

Graham backtracked on that this week andthe province asked NB Power to delay the plannedrate hike.

Graham said he needs that time so that New Brunswick citizens can get involved in the debate.

"We're going to be bringing forward an open and transparent process to fully engage the public, and the Conservative party, in the process of dialogue," Graham said Wednesday.

Under the proposed deal, Hydro-Qubec will take over the majority of NB Power's generation assets.

In exchange, New Brunswick residential ratepayers will have a five-year rate freeze, while the province's large industrial clients will see a 22-per-cent rate cut.

The delay is needed as the two sides are still hammering out the final details of the proposed energy deal.

Graham said the delay in getting the deal signed won't be a long one.

"It's going to save New Brunswickers a lot of hard-earned dollars. And as I said, it's a matter of weeks to have the finalized agreement in place."

Government scrambling

Progressive Conservative Leader David Alward said the delay isn't about consultation. Instead, Alward said thegovernment is scrambling in the midst of a crisis.

He said that's the only reason the Liberals have backed off what was once a firm March 31 deadline.

Graham has already faced a caucus revolt over the original $4.8-billion agreement to sellthe Crown corporation to Hydro-Qubec.

Even after the Liberals announced the scaled-down agreement that is now on the table, Stuart Jamieson resigned as tourism and parks minister for demanding the deal be put to a provincial referendum.

On Friday, the Liberal government will unveil its timetable for the debate on the legislation needed to enact the deal, which is expected to get underway after next week's March break.