Power deal deadline flexible: Keir

The urgency in getting the NB Power deal with Quebec finalized by the end of March seems to have disappeared.

Last October, the Graham government had said the sale of utility assets to Hydro-Qubec had to be in place before April 1 in order to avoid a plannedthree per cent power rate hike for New Brunswickers.

But on Tuesday, Energy Minister Jack Keir said NB Power has agreed to his request todelay that increase if the March 31 deadline isn't met.

'If they can ask for the delay in the 3 per cent now, why can't they ask for that delay til the next election?' Tory MLA Bruce Fitch

The PC Opposition has asked repeatedly for a delay since the proposed deal was announced.

"If they can ask for the delay in thethree per cent now, why can't they ask for that delay til the next election?" asked Tory MLA Bruce Fitch.

The Opposition has argued the government doesn't have a mandate to sell the majority of NB Power's assets to Hydro-Qubec for $3.2 billion and that the public deserves to have a voice on the issue, which will affect the province's future - either through an election or a referendum.

Keir said if there is a delay in closing the deal, it will only be a couple of weeks. It's still urgent that the deal be done this spring, he said.

Deadline was firm

Last October, Premier Shawn Graham had said the March 31 deadline for the deal was firm.

'If we don't close this deal by the end of March, there is going to be athree per cent power increase for the province of New Brunswick," he had said.

"The 3 per cent that was proposed last year will go into effect the 1st of April."

On Friday, the government is expected to lay out its timetable for a legislative debate on the agreement.

Under the deal, expected to be finalized by the end of March, Hydro-Qubec would acquire most of the province's power-generation assets, but New Brunswick would maintain control of transmission and distribution.

New Brunswick's residential ratepayers will get a five-year rate freeze. Medium-sized industries will see a roughly 15 per cent cut in power rates and will have those rates locked in for five years, while large industrial customers will see their power prices fall by roughly 23 per cent.

After five years, rates will increase with inflation and be regulated by the New Brunswick Energy and Utilities Board.

The deal was watered down from the original $4.8-billion package announced in October because of a public outcry and open dissent within the Liberal caucus.