NB Power rhetoric clouds the air: minister
Published Wednesday November 4th, 2009
Details getting lost as New Brunswick debates deal, says Energy Minister Jack Keir
FREDERICTON - As the Government of New Brunswick embarks on a massive public relations effort to convince the public of the value of the NB Power sale and the Opposition attempts to deride it, the facts of the deal may be getting left behind.
"We have to explain exactly what the issues are," Energy Minister Jack Keir said yesterday.
The deal will see Hydro-Québec, that province's publicly-owned utility company, buy all of NB Power's transmission and distribution infrastructure, as well as its clean-burning production facilities.
In return, New Brunswick will receive $4.75 billion to pay off all of its company's debt, which accounts for about 40 per cent of the province's total debt.
New Brunswickers will also be guaranteed freezes or reductions in electricity costs under the deal.
Residential customers will see their rates frozen at current levels for five years -- a move the government estimates will save the average household $1,392 during that time.
After the five-year freeze, Hydro-Québec will be able to increase rates, but only in connection to the consumer price index or in accordance to the cost of generating extra energy.
Price increases will be regulated by the New Brunswick Energy and Utilities Board, as they are now, although a legislative committee will be formed to harmonize the system with that of Quebec's.
Meanwhile, large industrial rates will fall by 30 per cent and small industry will see a 15 to 20 per cent reduction, bringing them equal to Quebec rates, but will likely see annual increases immediately, since their rates will not be frozen.
NB Power's assets will be sold to Quebec, but the company will remain as a separate company from Hydro-Québec to manage the day-to-day business and implement the government's energy policy.
Under the terms of the proposed deal, new private or public energy projects can still be constructed in New Brunswick to sell electricity onto the transmission grid, which will remain open to all interested sellers inside and outside the province.
As a result, renewable wind- or tidal-energy farms remain a possibility. Hydro-Québec would offer employment to all existing NB Power employees and honour existing collective agreements.
However, the deal also includes the closing of the Dalhousie thermal generating plant, putting about 100 people out of work in the near future. Hydro-Québec could also direct the fossil-fuel burning plants that NB Power retains to be closed on one-year's notice, meaning other jobs could also be in jeopardy in the long run. The Liberal government began a campaign designed to sell the deal to New Brunswickers this week, including hiring a communications consulting firm, buying newspaper advertisements showing the forecasted savings and commenting on radio call-in shows to respond to the public's questions.
David Alward, the Progressive Conservative leader, says the campaign is 'spin' designed to hide the downsides of the sale -- and that it's costing taxpayers about $1 million in the process.
The agreement between the provinces must be finalized by March 31, 2010. To get more information and provide feedback on the proposed deal, New Brunswickers can call 1-800-533-3086 or visit lowerratesnb.ca.
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"The impact on the economy and cost of living for the average person will be huge. Given the momentous stakes, the fear-mongering that's going on for political gain is irresponsible.
"New Brunswickers must come to terms with the specifics of the proposed agreement and engage in a searching debate on its merits. So far, all the Opposition is offering is xenophobia and torqued-up rhetoric. This isn't leadership; it's an abdication of political responsibility."
This kind of stuff is standing in the way of a genuine discussion on this issue. This is too important to play political games with.
The Conservatives are no better on this one , they would have done it a few years ago.
By the way , have all the M.L.A.'s lost their voices, I am only hearing M.A.Blaney
A $1 million spin campaign?! Nice responsible use of the taxpayers' money you imbeciles. If it's a good deal, publish ALL the details. Don't try to polish a turd, which is exactly what HydroQuebec has given you.
Are these the same people who estimated that the Lepreau refurbishment would be done on time?
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Thsi is where the concervative fear mongering comes in. They are using this an opportunity to attack the Liberals over a deal that they would have nedorsed. They pit the french against the english and blame it on the Liberals. The Conservatives are as much to blame for this mess as are the Liberals. Libs shoud pony up the details, and the Conservatives shoul put and end to the Bush Administration-like fear tactics. An outsider might think that Al-Qaeda was trying to purchase NB power.