Residents of New Brunswick are facing unavoidable increases in electricity bills, according to a recent report from an expert panel. This panel was tasked with assessing the challenges faced by New Brunswick Power, which serves approximately 400,000 customers statewide. Their findings highlight significant systemic issues within the utility, including poor governance and a lack of operational focus.
Key Findings and Recommendations
The expert panel, established in April 2025 at the direction of Premier Susan Holt, comprised three members: Duncan Hawthorne, Anne Bertrand, and Michael Bernstein. The panel’s mandate included evaluating the financial sustainability and governance of New Brunswick Power.
Systemic Issues Identified
- The panel concluded that New Brunswick Power lacks a culture of operational excellence.
- Only two of the utility’s last twelve business plans met their financial goals.
- There was a significant failure in the board of directors to set clear performance expectations for the management.
- The panel identified a history of government interference, particularly a restriction on rate increases between 2011 and 2022, which contributed to revenue losses of approximately $1.5 billion.
New Brunswick Power’s current debt stands around $6 billion, leading to a debt-to-equity ratio exceeding 93%. This situation places it among the most indebted utilities in Canada, primarily due to capital expenditures from past decades, including the construction of the Point Lepreau nuclear power plant.
Recommendations for Improvement
The panel issued 50 recommendations aimed at restructuring and improving operations. These included:
- Installing natural gas furnaces for heating instead of generating electricity through gas.
- Considering the establishment of an independent system operator for the Maritime provinces.
- Forgiving debts related to the Point Lepreau nuclear plant to enhance financial viability.
- Conducting a comprehensive review of the Energy and Utilities Board’s regulatory framework.
Focus on Point Lepreau Nuclear Plant
The report also pinpointed operational inefficiencies at the Point Lepreau facility, attributing these to a compliance-oriented culture that often overlooks improving actual outcomes. To support the plant’s performance, New Brunswick Power has partnered with Laurentis Energy Partners, a subsidiary of Ontario Power Generation, although the partnership’s effectiveness in enhancing commercial performance is yet to be demonstrated.
Future Planning Considerations
Despite ongoing operational challenges, the panel recommends that New Brunswick begin planning for an additional nuclear facility alongside Point Lepreau. This recommendation does not imply immediate construction; rather, it calls for preparatory approval and assessment stages.
The provincial government has expressed a commitment to develop an action plan addressing all 50 recommendations by the end of May. This initiative aims to restore confidence in New Brunswick’s public utility and ensure a more sustainable energy future for its residents.
