N.B. premier downplays big business impact of energy deal

Premier Shawn Graham ispromising that the province's largest power users would notbe the only ones to benefit from an energy partnership with Quebec.

Graham has not confirmed he's in talks to sell NB Power to Hydro-Qubec, but he's already trying todamp speculation that the Irving group of companies, the province's biggest corporate player, would get the best deal.

The New Brunswick premier said any energy agreement with Quebec won't benefit big industry alone and he promised any deal would be scrutinized in the legislative assembly.

"We need to deal with existing small and medium-sized businesses in the province. Any new partnership, how could that benefit the growth of businesses and create more jobs?" Graham said.

Another key element in any energy deal, Graham said, is lower power rates. The premier has not outlined what customer classes would see the biggest savings following an energy deal with Quebec.

No special deal

Many large businesses, especially in the forestry sector, have long complained about the high cost of power, especially when comparedwith neighbouring Quebec.

However,Mark Arsenault, the president and chief executive officer of the New Brunswick Forest Products Association, said his members are not looking for a special deal from Hydro-Qubec if the deal goes through.

"We don't want to look at this only with regards to how this would benefit industry. I think this has to be looked at as how this is going to benefit New Brunswick," he said.

"If there's something that can be done that makes sense, and people come out winners, you know, whatever elements that are put forward, I think it has to be considered as a larger global package."

According to a Hydro-Qubec comparison sheet of power rates, a large industrial company in Montreal would pay 4.79 cents per kilowatt hour while a similar company in Moncton, N.B, would pay 6.99 cents per kilowatt hour.

In March 2008, Mark Mosher, a vice-president with Irving Paper, emphasized the cost difference between power rates in the two provinces.

"If we were to move our paper mill to Quebec, we would have a significant advantage over our operation in New Brunswick," Mosher said.

Newfoundland and Labrador Premier Danny Williams linked the Irving group of companies to the potential deal to sell NB Power to Hydro-Qubec earlier this week.

"We're hearing now that this could be possibly be driven by the Irvings in New Brunswick because there are commercial interests, because commercial rates could be driven down," Williams said on Monday.