Release
Department of Natural Resources
May 14, 2025
FREDERICTON (GNB) – The provincial government has removed the target date of 2029 for NB Power to reach its legislated goal of 80 per cent debt to 20 per cent equity in an effort to stabilize rate increases for New Brunswickers.
“The requirement to meet the 2029 equity target was the single biggest factor driving potential double-digit rate increases over the next few years,” said Finance and Treasury Board Minister René Legacy, who is also the minister responsible for energy. “As I’ve said before, our government is committed to helping New Brunswickers with the rising cost of electricity, and this measure is intended to do just that.”
Legacy said this change will not affect NB Power’s ability to raise rates to generate the revenue it needs. It will, however, allow the utility to lower required net earnings and, in turn, lower the rate increase for a given year.
“Although this requirement has existed for over a decade, very little progress has been made,” said Legacy. “We recognize that, rather than setting unattainable targets, we need to see the utility taking meaningful and measurable action – which has been outlined in NB Power’s 2025 mandate letter.”
In addition, NB Power has been tasked with developing a three-year plan on how it will make progress on the 20 per cent equity target. That plan must be presented to the minister responsible for energy by Oct. 1.
A comprehensive review of NB Power was announced last month. The review is intended to ensure NB Power has all the tools needed to meet the expectations of its customers and the government. Final recommendations and any decisions related to the review are expected by the end of March 2026.
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David Kelly, corporate communications, Executive Council Office, [email protected].