Saint John pushing for municipal energy utility to become city-owned corporation

Saint John Energy CEO Ryan Mitchell says "corporatizing" the municipality's energy provider could have significant benefits for the cityby driving economic growth and stabilizing energy rates.

This would turn the utility into a corporation owned by the citya change which would open doors for the company, Mitchellsaid, but current legislation stands in the way.

"The legislation around Saint John Energy was created in 1922," he said.

"So if you think about all of what has changed over the last 100 years, we really operate in a completely different world today. A world with ever-expanding energy needs, where innovation and agility is required to move to a cleaner energy future, where energy efficiency and affordability are critically important."

WATCH | 'It certainly brings stability':

Saint John pushes for municipal energy utility to be city-owned corporation

8 days ago

Duration 0:44

The City of Saint John and Saint John Energy say making the municipal utility a city-owned corporation could mean more revenue for investing in local economic development.

With a provincial election on the horizon, the City of Saint John and Saint John Energy are pushing for the party that forms the next government to support their goal of allowing the utility to act as a corporation.

Currently, the province's Local Governance Act doesn't allow municipalities to establish corporations or hold shares in corporations. Mitchell says this causes limitations on how the provider is able to operate.

The province's Electricity Act also stops the utility from selling outside of city limits.

Constraints =lost opportunities, CEO says

Mitchell saidthat while New Brunswick legislation allows for other provincial utilities to sell their services to Saint John Energy, the municipal utility can't easily do work elsewhere, and these legislative constraints mean losing out on opportunities that could spur innovation, create jobs and potentially help keep rates from rising.

"We want to be able to pursue opportunities like these. Existing legislation today either makes it very difficult to accomplish or just doesn't allow for it," he said.

"We can use that revenue to offset and to take pressure off of rates for our customers. We can also use that to share in the benefits with the City of Saint John through a dividend."

Coun.Gary Sullivan, who sits on the Saint John Energy commission, saidthe move would benefit the city in a number of ways, including bringing stability to rate payers through the energy provider having "diversified interests."

"If Saint John Energy has some other revenue coming in from other sources, if something happens drastically with rates, it could be a buffer on that side," he said.

Sullivan also saidthe move toward corporatization would allow Saint John Energy to thrive and be leaders and also progress goals on fossil fuel reduction.

"But we don't want to hold them up with extra paperwork and red tape and conversations that would have to happen. We want them to be enabled to do that," he said.

But the push needs provincial support.

City looks for alignment from provincial parties

Provincial party leaders presented their platforms to Saint John council at a specialMonday night meeting. Corporatizing the utility is one of six items on the city's list of prioritiesthat they are asking for provincial alignment on.

Both Green and Liberal Party leaders Susan Holt and David Coon voiced their support.

Local Government Minister, Glen Savoie, who took questions for Progressive Conservative Leader Blaine Higgs on the subject, said that corporatization is a part of the current government's plans for fiscal reform, which it is still gathering data on.

Any legislative changes related to fiscal reform would happen in 2025for implementation in 2026, Savoie said.

Sullivan said that all of the major parties seeingvalue in the proposal is a good sign and is optimistic about the future for the city's goals for its energy utility.

"Guaranteed, immediately following the election when we see who is in power and controlling the legislative agenda, that conversation will continue," Sullivan said.