New Brunswick’s power rates may face another increase as NB Power seeks approval for a temporary rate hike. The utility is asking for a 4.75% increase starting April 1, 2026, while it awaits a resolution from the Energy and Utilities Board (EUB) on its general rate application (GRA) submitted in October.
Details of the Rate Increase Request
The motion for the temporary rate increase includes two main requests:
- A 4.75% temporary increase from April 1, 2026.
- If this is not granted, NB Power seeks permission to recover lost revenues due to any delays in implementing new rates over the remainder of the fiscal year.
NB Power emphasized the necessity of this proposal due to delays in the GRA process. A scheduling conflict caused by the Renewables Integration Grid Security project has postponed the GRA hearing, now slated for February 9 to 13, 2026.
Implications of Delayed Rate Changes
Typically, a GRA hearing concludes in time for new rates to take effect at the start of the utility’s fiscal year. However, this delay could adversely affect NB Power’s revenue, limiting its capacity for critical investments that improve financial health and infrastructure.
The proposed increase would affect all rate classes. For example, the average residential customer using 1,350 kilowatt-hours per month would see their monthly bill rise by approximately $10.90.
Funding Infrastructure and Clean Energy Solutions
The additional revenue generated from this temporary rate increase would be allocated towards enhancing essential infrastructure. Projects include:
- Upgrading generating station reliability
- Improving vegetation management
- Boosting cybersecurity
- Implementing energy efficiency programs
If the EUB accepts the interim rate request, the increase would remain in force until a final decision is reached following the planned GRA hearing in March. Alternatively, if approved, NB Power could charge customers for any lost revenue after the GRA is finalized, likely remaining in effect until March 31, 2027.
Drivers Behind the Rate Change
Key factors influencing this request include a pressing need to enhance reliability and performance amid inflation and rising market prices. The utility underscores that these improvements are fundamental to ensuring a reliable power supply for all consumers in New Brunswick.
