NB Power deal collapse could hurt jobs

The collapse of the NB Power deal could leave some of the province's largest employers struggling, according to a political analyst.

New Brunswick's largest power users were anticipating a 23 per cent rate cut if the $3.2 billion deal with Hydro-Quebec went forward.

Don Desserud, a political scientist at the University of New Brunswick in Saint John, said the New Brunswick government still must find a way to address industry's concerns of uncompetitive energy prices now that the deal has fallen apart.

"This is a problem these industries are going to be very, very concerned and rightly so," Desserud said.

"The economic welfare of the province depends upon their viability, so something's going to have to happen there."

Quebec Premier Jean Charest told reporters Wednesday his province pulled out after its power utility found unanticipated risks and costs related to matters like dam security and water levels.

Under the proposed deal, industrial users across New Brunswick would have saved $65 million in the first year. Specifically, J.D. Irving's Saint John pulp and paper mill would have saved $14 million.

No one from the major industrial companies in Saint John, including J.D. Irving, agreed to an interview on the failed power dealon Wednesday.

The energy deal would have also included a rate freeze to the province's municipal utilities in Saint John, Edmundston and Perth-Andover.

Eric Marr, the president of Saint John Energy, said the utility's customers can expect a three per cent rate increase every year starting this May.

"And as a customer of NB Power we'll have to take that rate increase and more or less pass it along to customers," Marr said.

New opportunities

But not everyone thinks the energy deal's demise is negative news.

Tim Curry, the president of the Saint John-based Atlantica Centre for Energy, said new options could be found now that the Hydro-Qubec option is off the table.

"This may open up other opportunities for development of other sources of energy either within the province or within the region," Curry said.

David Coon, the executive director of the Conservation Council, said he hopes the deal's failure will cause the Liberal government to invite groups together to chart a new path forward for NB Power.

"Finally this gives us a chance to start over and engage New Brunswickers in a discussion on what our energy future should be like, what do people want it to be, what are our priorities," Coon said.

"We are ready to roll up our sleeves and participate in that."

Green Party Leader Jack MacDougall said the controversy surrounding the energy deal has engaged New Brunswickers in a debate over the province's energy future.

MacDougall said it is now the task of all political parties to harness that and continue the debate.

"I want to see the debate continued and take advantage of the great awareness [of energy issues] in New Brunswick," he said.