NB Power rate increase application to be heard next week

NB Power will ask the New Brunswick Energy and Utilities Board for approval to raise electricity rates by two per cent at a hearing set to begin next week in Fredericton.

If approved, the rate increase would represent an extra $4 per month for the average New Brunswick family, the power utility said in a statement Friday.

"(It)would maintain NB Power's residential rates as the lowest in Atlantic Canada."

Theprovince's public intervener is critical ofNB Power's application for the increase.

Heather Black,who represents the public in front of the regulator, formally submitted expert evidence earlier in the springcriticizing thetwo-per-cent rate hike, the utility's third identical increase in the last 21 months.

The evidence included an expert's recommendation for the regulator to deny the utility's proposed two-per-cent rate hike.

"NB Power's justification for the two-per-cent rate increase requested in its general rate application in this proceeding is insufficient," wrote Boston energy expert John Athas,who was hired by Black to review the application."It is my recommendation that the board deny NB Power's request."

The energy and utilities board is expected to make a decision on the application later this summer.

NB Power is in front of the Energy and Utilities Board for the first time in eight years to seek permission to raise its rates, something it has been allowed to do unilaterally the last two years and under direction from the Office of the Premier, without public review before that.

"We are looking forward to this process as it will provide our customers with a window on our plans for the future including our intention to add more renewable energy and pay down a billion dollars' worth of debt while keeping our rates low and stable over time," said Darren Murphy, chief financial officer and vice-president of corporate services.

NB Power is also required submit an updated 10-year financial plan annually to the board.