Latest news with #N.B.Power
CBC
15-05-2025
- Business
- CBC
N.B. Power report based on 'facts and evidence,' auditors tell MLAs
Social Sharing Auditors who examined an apparent winter spike in N.B. Power bills have persuaded one opposition party that meters are working properly — but another party still has doubts. The two senior auditors from KPMG Canada spent almost three hours Thursday fielding questions from MLAs about their conclusions that the utility's residential meters accurately measured the electricity customers were consuming. "Our work was focused on facts and evidence and data and analytics-based work. It was robust and it was thorough," said Andrea Coish, an auditor and managing partner of KPMG's Halifax office. Jack Martin, a KPMG expert in forensic data analytics, told the public accounts committee that "there's no evidence that either conventional meters or smart meters were overstating the power consumption of New Brunswick Power residential customers." They said it was up to N.B. Power to look at why some ratepayers were consuming more electricity than they believed. The anecdotal evidence of unexplained spikes in January power bills put the Holt Liberal government on the defensive last winter, prompting it to call in KPMG. WATCH | 'Our work was focused on facts': auditors grilled by MLAs N.B. Power auditors field questions from MLAs about bill spikes 2 hours ago Duration 2:54 The auditors examined 400 cases of bill spikes — enough to provide a statistically accurate picture of all customers, Martin said. The report backed N.B. Power's initial explanation that a cold winter, a longer December billing period and a major rate increase — which may have passed unnoticed until winter — combined to jolt customers with high bills. At least one Liberal MLA said he was convinced. "We need to stick to the facts and the fact was, on the 400-plus meters, there was nothing wrong about that," Hautes-Terres-Nepisiguit Liberal MLA Luc Robichaud told reporters. Green Party Leader David Coon, who had raised questions about the accuracy of some N.B. Power bills, said he was persuaded by the presentation. "My view is that the report, after all the questioning, finds that the system is functioning properly for New Brunswickers in terms of making sure that the bills they're being given reflect their actual consumption," he said. "I'm confident that's the case now." But Progressive Conservative energy critic Kris Austin said he believes some New Brunswickers will remain unpersuaded because KPMG relied on meter data collected by N.B. Power's own meter testers. "What we had called for was a review and a testing of the meters outside of N.B. Power's purview. That's what we wanted to see. That's what did not happen," he said. N.B. Power CEO Lori Clark told the committee that the utility's testers, who are certified by a federal agency, Measurement Canada, would be risking their careers if they deliberately faked any numbers. "There's no incentive for a tester to producer fraudulent results. These are highly trained individuals who would lose their certification and their jobs if they didn't measure properly," she said. Austin told reporters it was his job as an MLA to reflect public skepticism at the committee, even after three hours of expert testimony. "It's not my place to tell ratepayers the meters are working properly. My personal opinion — I have no reason to believe they're not," he told reporters. "It's not whether I'm satisfied. It's whether ratepayers are satisfied, and what I'm hearing from many ratepayers is they're not satisfied." Clark told the committee that Nova Scotia, Prince Edward Island and Newfoundland and Labrador all experienced a public backlash to similar bill spikes during the winter — and authorities in all three provinces came to the same conclusions as N.B. Power. Clark acknowledged to the MLAs that it has been a struggle for N.B. Power to convince some customers that they're consuming more electricity than they believe. The utility plans to provide more information to ratepayers, including about how their habits and the weather may affect their bills. "We have recognized through this process that a lot of our customers do not understand how they are using electricity and they know very little about how consumption is measured and how much they're using in their homes. So there is an education requirement, for sure." Clark told MLAs that N.B. Power needs their help to push back at what she called misinformation and misperceptions circulating online, particularly on social media.
CBC
25-04-2025
- Business
- CBC
Rate increases, colder temps behind N.B. Power bill spikes, review finds
A spike in New Brunswick energy bills to start the winter was due to higher power costs and freezing temperatures, according to a third-party review. N.B. Power CEO Lori Clark told reporters Friday that she understands the findings may be of little comfort to those who struggled to pay their bills this winter, but she hopes the results will provide some level of confidence in the embattled utility. "Having the trust and confidence of New Brunswickers is important to the utility," Clark said. "It's one of the most important things for the utility. "This report today should give customers confidence that our metering and billing systems are working properly, and that smart meters actually provide a tool for them to help manage their energy usage over time." The assessment of N.B. Power bills by auditing service KPMG found that bills were about 25 per cent higher in December 2024 than the previous year. Of that increase, 13 per cent was based on a rate increase that took effect in April 2024 and 12 per cent was due to consumption. KPMG staff told reporters during a technical briefing that the figures line up with frosty temperatures, which were 11 to 16 per cent colder than the prior December. According to the report, there was a "statistically significant correlation between weather temperatures and power consumption." WATCH | Cold temperatures driving power costs: Cold temps, higher rates behind steep climb in December power bills, review says 32 minutes ago Duration 2:02 Billing periods were also an average of 1.24 days longer than the year before, and there were 68 per cent fewer outage hours than the same period the year prior. Billing cycles have fluctuated from 28 days to 31 days, but the utility says it plans to make them the same in future. Clark said the utility wants to find ways to lessen the burden of recent rate hikes on customers and is launching several initiatives with that aim. "We do know that the results of this will not make it any easier for some of those customers who are struggling to pay their bills to actually pay those bills," Clark said. "We know in New Brunswick that we have some of the lowest rates in Canada, but because of the high dependence on electric heat that our customers have some of the largest bills. So there are certainly some actions that we can take to help customers manage their consumption." Clark reiterated N.B. Power's commitment to applying "time of usage" metering once smart meters are installed across the province, likely next year. "Time of usage" billing will allow customers to opt in to a differential rate structure, where they pay more for power during peak times but a lesser rate outside those periods. 466 accounts got closer look To conduct its review KPMG analyzed 466 customer accounts, comparing December 2024 bills to December 2023 and November 2024. Of those, 275 did not have their meter changed in the last year, 46 had a winter peak in the last five years within 10 per cent of the consumption recorded in December 2024, and 33 had similar consumption levels to their peers following the change in meter. Another 92 customers had consumption levels 30 per cent or more higher than the previous year. KPMG recommended that N.B. Power contact those customers to see if there were other factors to help explain the sudden spike. Overall, the review found that there were 67 million more kWh used in December 2024 than in December 2023. The pre-tax costs to residential customers were $20 million higher, with roughly half being due to higher rates and half due to higher consumption.
CBC
17-04-2025
- Business
- CBC
'Risk of insolvency' at parent company of N.B. nuclear developer
Social Sharing Saint John-based Moltex Energy Canada Inc. is hoping potential new owners for its overseas parent company will breathe new life into its development of small modular nuclear reactor technology in the province. But the company acknowledges that cash flow problems at its U.K.-based parent company have slowed down those efforts. There is "a risk of insolvency" at the parent company, Moltex Canada CEO Rory O'Sullivan acknowledged in an interview. An administrator is now looking for buyers for the U.K. company's assets, which include Moltex Energy Canada. "As a technology development company we need to almost continuously be fundraising to keep progressing technical milestones," O'Sullivan told CBC News. "And, because we need parent company authorization to raise new capital, we have not got that authorization. "That has slowed us down. And so that's why we're looking forward to new owners as soon as possible." The U.K. administrator overseeing the sale, Azets Holdings Ltd., said in a statement that the holding company had been unable to get majority shareholder consent for new investments or a sale of assets. That led directors to decide on March 17 to put the company under Azets administration. "The decision taken to place the company in administration is in no way a reflection on the operations of, or proposition within, the subsidiary companies," the statement said. Potential buyers for Moltex have until May 7 to submit bids for the company's assets, and it should take two to three months for the sale to close. WATCH | 'That has slowed us down': Moltex CEO on possible sale: N.B. nuclear developer hoping for new owner 50 minutes ago Duration 1:50 O'Sullivan said he is "very confident" that Moltex Canada will still be operating later this year. Nuclear power doesn't emit greenhouse gases, so it's a key element of N.B. Power's strategy to reduce emissions that contribute to climate change. Since 2017, Moltex Energy Canada is one of two companies that have been at work in Saint John developing small modular nuclear reactors. The company received $5 million from the New Brunswick government in 2018 and almost $50 million from the federal government in 2021. The other company, ARC Clean Energy, has also run into problems. Goal was to be ready by 2030 ARC had hoped its first SMR would be ready by 2030, the date for phasing out the use of coal at N.B. Power's Belledune generating station. But last year, Bill Labbe, the CEO who made that commitment, left the company, and utility officials said that date was no longer feasible. ARC has made no announcements about its progress since May 2024. "We are unsure whether or not ARC will be ready at that point or not, but we'll continue to work with ARC," N.B. Power CEO Lori Clark told the legislature's public accounts committee in February. "They are looking for investors now. … We also have to have a Plan B in the event ARC isn't ready." That could include buying small reactors from companies not operating in New Brunswick. Ontario Power Generation was recently granted a licence by the Canadian Nuclear Safety Commission to build its first SMR, a competing model by GE-Hitachi, at its Darlington power station. ARC spokesperson Sandra Donnelly said in a statement Wednesday that it aims to complete design work by 2027 so it can apply to the commission for a license to build its first reactor. She said that would require funding from private investors and governments. O'Sullivan told a committee of MLAs in 2023 that Moltex's nuclear waste recycling technology would be ready by 2030 but its reactor would not be. He said Wednesday that the cash flow problems at Moltex's U.K. parent company have put the timeline "a couple of years behind that." But he said the company's nuclear waste recycling technology — which would reprocess waste from the Point Lepreau nuclear station — means there's a market for its products even if N.B. Power buys reactors from another supplier. Utility spokesperson Elizabeth Fraser said in an email statement that the U.K. sale process would have "no immediate impacts" on N.B. Power's technical support of Moltex. She said there was nothing new to report on its shopping around for other possible reactors. Some experts, including a former chair of the U.S. Nuclear Regulatory Commission, have questioned Moltex's plan, arguing the possibility of reprocessing waste and reducing the cost and risks of storing it is unproven. Moltex recently announced what O'Sullivan calls "excellent waste-recycling results" that will allow it to sell its technology to other potential buyers when it's ready. The CEO said despite a lot of federal election discussion about developing conventional energy such as oil and gas to reduce Canada's dependence on the U.S., he's not worried about nuclear energy being sidelined. "Nuclear is really by far the ultimate solution for energy security concerns," he said. "It's clean, it provides reliable electricity and it's affordable. It's competitive. … I'm actually more optimistic than ever about [the] nuclear role because it addresses the climate concerns and it addresses energy security concerns."
CBC
14-04-2025
- Business
- CBC
Holt Liberals set one-year timeline for N.B. Power review
Social Sharing The Holt Liberal government is giving itself less than a year to come up with a decision about the future of debt-laden N.B. Power. Some details about a planned public consultation process — including who will run it and how many open meetings there will be — are still taking shape. But Premier Susan Holt says final recommendations, and a decision by her government, are due by the end of March, 2026. She told reporters she's aware she must convince a cynical public that the process really is open-ended, with no preset conclusions. Holt said New Brunswickers "will have access to, directly," the three people who will be chosen to oversee the consultations. "These three individuals will be putting their own names and reputations on the line," she said. "Regardless of what the recommendations are, if New Brunswickers won't accept them, either because they didn't believe in the process of they don't believe in the recommendations, we're not going to be further ahead." The consultations will look at four main issues: N.B. Power's finances, including its $5 billion debt; its governance and structure, its attractiveness to potential investors and partners, and its ability to meet customer expectations. Holt promises consultation, decision on N.B. Power's future within a year 2 hours ago Duration 2:08 In a statement, utility CEO Lori Clark said the process represented a chance to look at the Crown corporation's challenges. "We welcome meaningful dialogue with New Brunswickers and are committed to supporting this important work by sharing information, data, and expertise." The catalyst for the process was a large number of complaints from customers about home heating bills in January that appeared to be unusually high, even with cold weather and recent rate increases factored in. Underlying those concerns is the larger issue of a Crown corporation that has been unable to reduce its enormous debt, requiring rate hikes totalling 19 per cent over the last two years. With a required refurbishment of the Mactaquac hydroelectric dam looming — at a cost of at least $7.6 billion — the Liberals have decided to re-examine the entire structure of the utility, with a sale as one option. That idea provoked an angry public reaction when a previous Liberal government proposed it in 2009. Holt aims to avoid that by holding extensive public meetings. "We will be holding public engagement opportunities where people can come out and express at an open mic their views and ideas." The process will also involve consultations with experts, stakeholders and Indigenous communities. "The status quo is not an option," Holt said. "We know there won't be one easy fix to this problem. "I don't think there will be a silver bullet. I guess I'll be happily surprised if there is one. But we think the solutions are going to be complex and mutlfaceted." If the conclusions from experts are at odds with public opinion, it'll be up to politicians to "bring New Brunswickers along" or adjust. "It is the job of politicians to determine how far we can go and how close we can get to what might be a technically ideal solution that isn't publicly ideal," she said. Progressive Conservative energy critic Kris Austin said the consultation isn't needed. "I think my question to the premier and the government is: What are you hoping to get out of this review that we don't already know?" he said, citing N.B. Power's annual report, auditor general reports and a review by PricewaterhouseCoopers. "I don't think we're going to find anything new N.B. Power a year from now. … They're saying, 'We're not going to do anything with N.B. Power for the next year.'" Asked what should be done with the utility, Austin pointed to the previous PC government's efforts to have the utility lower the ratio of its debt to its equity value. Holt said an audit into the seemingly high January power bills is still expected by the end of this month. She acknowledged that her government's removal of the provincial portion of the harmonized sales tax — 10 per cent — had been offset and more by the two years of rate increases. She did not announce any additional short-term relief Monday.
CBC
09-04-2025
- Business
- CBC
N.B. Power risked 'fatigue-related errors' at nuclear plant, regulator says
Social Sharing Federal regulators say N.B. Power violated rules designed to ensure overnight shift workers at the Point Lepreau nuclear power plant get enough sleep to reduce the risk of safety mistakes. The Canadian Nuclear Safety Commission said, in a notice of violation, that some workers did not get the required 72-hour "recovery period" after working three consecutive night shifts at the nuclear plant. "CNSC staff contend that the N.B. Power staff working outside the bounds of [the regulations] were not provided a sufficient opportunity for sleep and recovery from sleep debt," said the nine-page notice issued in March. "As such, these workers were at an increased risk of experiencing high levels of fatigue and committing fatigue-related errors." The commission fined the utility $24,760. N.B. Power did not provide a comment on the notice to CBC News by deadline. WATCH | 'Mistakes can be made.' N.B. Power fined for Lepreau violation: N.B. Power violated nuclear rules at Point Lepreau, regulator says 55 minutes ago Duration 1:30 Green Party Leader David Coon said the revelation was alarming and suggested that the plant is short-staffed. "You're talking about operators, emergency response personnel, security people who've been working three night-shifts straight and are then having to come back to work without having the chance to get some rest," he said. "This is a nuclear reactor. You can't have people who are fatigued, who are tired, doing those jobs because as the regulator said … mistakes can be made and those mistakes could be very serious." According to the March 20 violation notice, N.B. Power's operating licence for the nuclear plant requires it to implement a program so that workers in "safety-sensitive positions" can avoid fatigue. That includes limits on hours of work and minimum recovery times. The commission first noticed during an inspection in late 2022 that N.B. Power's shift-scheduling software allowed workers to be scheduled in violation of the regulations and that some workers had exceeded the limits. N.B. Power told the commission it was adopting "interim corrective actions," including manual reviews of schedules, the notice said. Follow-up inspections by the commission, in 2023 and 2024, "found continued non-compliance" with the rule requiring a 72-hour break between three or more night shifts. There were 104 violations in 2023 and 150 in 2024, it says. The commission wrote to N.B. Power on Jan. 7 asking it to take steps to avoid more violations. The utility responded Jan. 22 claiming that it had addressed the issues, including by requiring all staff in safety-sensitive positions to get training on the rules. The commission followed up in February with a verification of N.B. Power staff training and found nearly 30 per cent of affected workers at Point Lepreau had not completed the training. "This contradicted the statements made by N.B. Power in their response to the warning letter," the commission said. The utility has taken further steps since February, including a software update that shows when the hours-of-work rules are not being followed. The commission decided to fine N.B. Power to "help deter recurrence" of the violations, the notice said. Coon said the $24,760 fine should be higher but said publicizing the violation should also compel the utility to be more diligent. When the commission first spotted the scheduling problems in 2022, Point Lepreau was overseen by N.B. Power's vice-president nuclear, Brett Plummer. CEO Lori Clark revealed in September 2023 that Plummer was leaving the position and that she was taking on the role herself. "She said she would play the dual role of CEO and vice-president nuclear," Coon said Tuesday. "Perhaps that's not appropriate."
