NB Power

NB Power releases short-term plan (10/04/09)

NB 504

April 9, 2010

FREDERICTON (CNB) - NB Power has submitted a short-term rate plan as requested by Premier Shawn Graham on March 24.

"We have been working diligently over the past two weeks to fine-tune a short-term plan that will allow us to reduce and control costs," said Gaëtan Thomas, president and chief executive officer (acting). "This plan will allow us to keep rates as low as possible for our customers and meet the expectations of government to limit the rate increase to three per cent for this year."

The rate change will also enable NB Power to meet its commitment to eliminate the residential declining block rate. The deadline to eliminate this rate was extended to June from April.

In addition to a recommendation that a rate increase of three per cent be implemented as soon as the process permits, the plan includes a cost reduction program to be implemented by June 30; this will save about $20 million per year. This will be achieved through:

The company has also carefully reviewed its operations in Dalhousie. As was previously announced, the fuel supply contract for the Dalhousie Generating Station expires in June. Once that contract has ended and the fuel has been used, it will be uneconomical to continue operations of that plant. It is anticipated that the remaining fuel will be enough to supply the station through the next winter. As a result, the company has recommended that a Request for Proposals for the sale of the station be issued in the coming months.

NB Power will continue to explore other ways to increase efficiency and lower costs for the benefit of their customers.

10/04/09

MEDIA CONTACT: Heather MacLean, director, corporate relations and communications, NB Power, 506-458-6618, hemaclean@nbpower.com.

10/04/09