PCs promise 3-year NB Power rate freeze

Progressive Conservative Leader David Alward is promising a three-year freeze on power rates if his party wins the Sept. 27 New Brunswick election.

Alward made thepromise Tuesday in Saint John, saying he wants to offer stable power ratesto residents and businesses.

The Tory leader said an energy commissionwould be struck to chart a path for NB Power, whose generation assetswere almost soldto Hydro-Qubec this year under a proposed deal withNew Brunswick'sLiberal government.

"While a Shawn Graham government tried to convince New Brunswickers that selling NB Power was the only way to achieve rate relief, a knowledgeable and credible group of New Brunswickers have done a thorough analysis of NB Powers finances and are confident with NB Powers ability to commit to freezing power rates until March 31, 2013," Alward said in a news release.

Plans to balance budgets

Also on Tuesday, Alwardtold CBC Newshe will soon release a plan to bring the province back to balanced budgets in four years.

Alwardsaid he felt he could eliminate the provincial deficit without raising taxes or cutting services.He said he'd eliminate some government consultants hired by the Liberal government.

The Conservative news release offered no details on how much the three-year power rate freeze would cost provincial coffers.

Kurt Peacock, an intervener in past NB Power regulatory hearings, saidapledge to freeze rates across the board does little toserve ratepayers' best interests. It merely sweeps NB Power's problems under the rug in exchange for electoral gain, he said.

"The Conservatives'pledge to set rate policy by government fiat ensures that if they areelected, they're prepared to make the same mistakes as theirpredecessors," Peacock said in an email.

"I'm sure that everyone who has participated in the recent regulatoryoversight of NB Power wouldrather see a complete and thorough ratehearing be held instead of more political interference. Over the lastdecade, the regulator has been much more willing and able to protectthe ratepayer from NB Power's cost over-runs than either party in theNB legislature."

Accused of contradictions

Energy Minister Jack Keir alsocriticized Alward's promise to freeze rates.

"David Alward is spinning so hard his message has veered out of control," Keir said in a statement.

"Setting aside how much some of these statements contradict his past positions, his points today even contradict each other."

Keir said the Tory leader contradicted himself when he said he doesn't want any energy policy decisions made until a policy is released in 2011,but at the same timehe announced the rate freeze.

The energy minister also said Alward's promise could jeopardize NB Power's financial situation, particularly with respect to the deferral costs related to the Point Lepreau refurbishment project.

"Even if the federal government were to compensate us for their delays, we would still need to pay for the replacement power cost," Keir said.

NB Power has said it will need to raise power rates to help pay for the $1.4-billion refurbishment of the Point Lepreau nuclear power plant.

The Liberal government had proposed a five-year rate freeze in its attempt to sell NB Power to Hydro-Qubec. The deal died in March and NB Power decided to raise power rates by three per cent.