ACTION ALERT: Raise questions about the sale of NB Power

Updated February 12, 2010

In October 2009, the New Brunswick and Québec governments announced a Memorandum of Understanding (MOU) to sell New Brunswick Power Distribution and Customer Service Corporation, more commonly known as NB Power, to Hydro Québec. More recently, changes to the agreement including NB Power retaining ownership of transmission and distribution assets, was announced.

There are several troubling features of the sale that are triggering responses across New Brunswick, the Atlantic region and the country.

The approach by the provincial government for public engagement on such a monumental decision is seriously lacking. The proposed agreement has not gone before the provincial legislature for a full committee review. The government is not holding public hearings, nor are there plans to hold a referendum. Instead, public feedback is being relegated to a government webpage and public relations campaign.

Further, the devil can be in the details when it comes to significant agreements such as this proposed sale. While the Premier has promised the full legal agreement will be released to the public before it is signed, the text has not yet been released. Access to the full agreement is fundamental for ensuring proper independent review in the public interest and should be the basis of democratic debate.

The lack of democratic debate and inability to fully review the agreement alone compels the Council of Canadians to see the agreement as not in the public’s interest.

Meanwhile, the agreement is moving forward without the government having a comprehensive energy policy to meet energy security needs and transition away from fossil fuels.

Further, the information that has been presented in the MOU and the more recently announced updated summary of agreement on energy raise serious questions for the Council of Canadians.

The expansion of public and community-owned renewable energy projects meeting local and provincial needs, alongside comprehensive plans to improve conservation and energy efficiency, should be important priorities for provincial energy planning. While it is positive to see NB Power retain ownership of the transmission and distribution assets, questions remain. Will the agreement allow for NB Power to own renewable energy generation including working in partnership with community-owned renewable energy projects? Will the agreement affect the expansion of public and community-owned renewable energy in New Brunswick beyond existing regulatory commitments?

There also continue to be legitimate questions raised over the questionable benefits to New Brunswickers in selling generation assets. One independent review prepared by a group of New Brunswick people with backgrounds in business, engineering (including with a utility background) and beyond, concludes that the benefits of reducing New Brunswick Power’s debt do not outweigh the disposing of assets worth significantly more than the debt reduction.

It is quite apparent that the desire to access U.S. export markets is a large factor behind the sale, as well as a central contentious point amongst Eastern Canadian Premiers. The Council of Canadians continues to caution against a regional energy vision directed at export-oriented trade. The business model of focusing on exports and profit potential as opposed to sustainably meeting local and regional needs raises concerns. This can lead to decisions guided by priorities that may not be in the public interest. It can act to justify the expansion of large scale energy projects with serious social and environmental impacts while overlooking the benefits of achieving smaller scale, more diversified and sustainable energy production and consumption (including increased energy conservation and efficiency). 

TAKE ACTION:

• Use this action alert to send a message to the Honourable Shawn Graham, Premier of New Brunswick, Honourable Jack Keir of New Brunswick, and Party Leaders.

• If you live in New Brunswick, please consider sending this action alert as well as sending a letter to your MLA raising the questions and points noted here and in our open letter. Find a list of NB MLAs listed by constituency here.
  
  

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SEND A LETTER NOW:

Subject
Recipients	Honourable Shawn Graham, Premier of New Brunswick Honourable Jack Keir, Minister of Energy Honourable David Alward, Leader of the PC Party of New Brunswick Roger Duguay, Leader of the NDP Party of New Brunswick Jack MacDougall, Leader of the Green Party of New Brunswick premier@gnb.ca; jack.keir@gnb.ca; info@pcnb.org; ndpnpd@nbnet.nb.ca; info@greenpartynb.ca
Compose your letter in the box below.
Dear political leaders of New Brunswick, I continue to follow with interest your government’s agreement with Hydro Québec regarding the future of NB Power, including the recently announced changes. I am shocked at the ongoing lack of public consultation on this matter, considering the serious long-term implications of such a decision. Why hasn’t the agreement gone before the provincial legislature for a full committee review? Why isn’t the government holding public hearings? Posting information and receiving comments on a government webpage is simply not good enough. While the Memorandum of Understanding and summary of recently announced changes provide an overview of the agreement’s main points, as the saying goes, the devil is in the details. There needs to be opportunity and sufficient time for independent review of the full legal agreement. The lack of democratic debate alone compels me to believe the agreement is not in the public’s interest. In addition to the lack of democratic debate, there are a number of questions arising from the revised agreement that continue to trouble me. How can the New Brunswick government continue with this agreement without first developing a comprehensive energy policy to meet energy security needs and transition away from fossil fuel reliance? I believe that expanding public and community owned renewable energy alongside stronger conservation and energy efficiency measures should be an important government priority. While it is positive to see NB Power retain ownership of the transmission and distribution assets, questions remain. Will the agreement allow for NB Power to own renewable energy generation including working in partnership with community-owned renewable energy projects? Will the agreement affect the expansion of public and community-owned renewable energy in New Brunswick beyond existing regulatory commitments? The benefits of the deal remain in question. One independent review prepared by a group of New Brunswick people with backgrounds in business, engineering (including with a utility background) and beyond, concluded that the benefits of reducing New Brunswick Power’s debt do not outweigh the disposing of assets worth significantly more than the debt reduction. While access to Québec hydropower is beneficial from the perspective of reducing emissions, this access can be secured with a long-term power purchasing agreement, without selling generation assets. I remain unconvinced that it is in the interests of New Brunswicker’s to sell generation assets, which represents a loss of future revenues and capacity to control these assets in the interests of New Brunswickers. At a time when energy needs must increasingly be met by low emission sources, how is the sale of seven hydroelectric generating facilities producing low emission power in the public interest? Further, it is quite apparent that a large factor behind the sale, as well as a central contentious point amongst Eastern Canadian Premiers, is the desire to access U.S. export markets. The business model of focusing on exports and profit potential as opposed to sustainably meeting local and regional needs raises concerns. It can lead to decisions guided by priorities that may not be in the public interest. Although the next provincial election will now not be until September, your actions now will determine the fate of your government at the next election. These questions deserve a full response. Thank you,
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