TABLE OF CONTENTS

EXECUTIVE SUMMARY

1.0 INTRODUCTION

1.1 Process

1.2 Policy Goals

1.2.1. Ensure a secure, reliable and cost effective energy supply for residential, commercial and industrial customers.
1.2.2. Promote economic efficiency in energy systems and services.
1.2.3. Promote economic development opportunities.
1.2.4. Protect and enhance the environment.
1.2.5. Ensure an effective and transparent regulatory regime.

2.0 NEW BRUNSWICK ENERGY PROFILE

2.1 ENERGY DEMAND

2.1.1. Total Primary Energy Demand
2.1.2. End Use Energy Demand

2.2 Electricity in New Brunswick

2.3 Indigenous Coal

2.4 Natural Gas

2.5 Refined Petroleum Products

2.6 New Brunswick Energy Needs

2.6.1. Historical Energy Needs
2.6.2. Projected Energy Needs to 2010

3.0 CHALLENGES AND OPPORTUNITIES

3.1 Electricity

3.1.1. Background

3.1.1.1. Review of Previous Electricity Reports
3.1.1.2. Electricity Restructuring in Other Markets

3.1.2. New Brunswick Approach
3.1.3. Wholesale Competition

3.1.3.1. Moving Toward Wholesale Competition
3.1.3.2. Establishing a Workably Competitive Market
3.1.3.2.1. Interconnections
3.1.3.3. Functional Unbundling of the Crown Utility
3.1.3.4. Levelling the Playing Field
3.1.3.5. Reliability of Supply
3.1.3.6. Distribution Electric Utilities

3.1.4. Non-Utility Generation Development

3.1.4.1. Merchant Generation Facilities
3.1.4.2. Self-Generation

3.1.5. Full Retail Competition

3.1.5.1. Strategic Approach to Full Retail Competition
3.1.5.2. Timing and Staging
3.1.5.2.1. Large Industrial Retail Customers
3.1.5.2.2. Smaller Retail Customers
3.1.5.3. Standard Offer Service
3.1.5.4. Preparing for Full Retail Competition
3.1.5.4.1. Full Retail Settlement Costs
3.1.5.4.2. Cross-Subsidization in the Current Rate Structure

3.1.6. Cross Cutting Issues

3.1.6.1. Refinements to the Regulatory Regime
3.1.6.2. Reciprocity

3.1.7. Policy Implementation

3.2 Natural Gas

3.2.1. Background
3.2.2. Development of a Viable Natural Gas Delivery System

3.2.2.1. Extension of Natural Gas Laterals and Distribution System
3.2.2.2. Development of a Competitive Retail Market
3.2.2.3. Reliability of Supply
3.2.2.4. Training and Development

3.2.3. Development of an Indigenous Natural Gas Industry
3.2.4. Market-Based Fuel Selection

3.3 Refined Petroleum Products

3.3.1. Background
3.3.2. Efficient and Competitive Markets

3.3.2.1. Motor Fuels
3.3.2.2. Heating Oil

3.3.3. Access to Accurate and Timely Price Information
3.3.4. Security of Supply and Economic Stability

3.4 Energy Efficiency

3.4.1. Background
3.4.2. The Energy Efficiency Potential
3.4.3. Factors Inhibiting Energy Efficiency Investment
3.4.4. Energy Efficiency Strategy

3.4.4.1. Expand Existing Efforts
3.4.4.1.1. Consumer Information and Education
3.4.4.1.2. Lead by Example
3.4.4.1.3. Participate in Federal Programs
3.4.4.1.4. Expand Energy Efficiency Regulations and Promote High Performance Equipment
3.4.4.2. Propose New Measures
3.4.4.2.1. Energy Efficiency Funding Mechanism
3.4.4.2.2. Residential Options
3.4.4.2.3. Commercial and Institutional Options

3.4.4.2.4. Industry Options
3.4.4.2.5. Transportation
3.4.4.3. Incorporate Energy Efficiency in Electricity Markets
3.4.4.3.1. Price Signals
3.4.4.3.2. Cogeneration
3.4.4.3.3. Fuel Switching
3.4.4.3.4. Demand Side Management

3.5 Alternative Energy

3.5.1. Background
3.5.2. Benefits of Alternative / Renewable Energy
3.5.3. Market Demand for Green Power
3.5.4. Adoption of Alternative Energy Technology

3.5.4.1. Research and Development Opportunities
3.5.4.2. Demonstration Projects
3.5.4.3. Promotion and Development of Bio-fuels
3.5.4.4. Small-Scale On-Site Electricity Generation
3.5.4.5. Green Pricing
3.5.4.6. Renewable Portfolio Standard

3.6 Environmental Concerns

3.6.1. Background
3.6.2. Key Environmental Issues

3.6.2.1. Climate Change
3.6.2.2. Acid Rain
3.6.2.3. Canada Wide Standards ("CWS")
3.6.2.4. Electric Power Generation Facilities

3.6.3. Mitigative Measures

3.6.3.1. Emissions Trading
3.6.3.2. Natural Gas
3.6.3.2.1. Emission Reduction Credits for Natural Gas Conversions
3.6.3.2.2. Natural Gas Vehicles
3.6.3.3. Bio-Fuels
3.6.3.4. Preparation for Competition in Electricity Export Markets

4.0 MEETING THE ENERGY POLICY GOALS

4.1 Electricity

4.2 Natural Gas

4.3 Refined Petroleum Products

4.4 Energy Efficiency

4.5 Alternative Energy

4.6 Environmental Concerns

5.0 REFERENCES

GLOSSARY