New Brunswick utility is proposing rate hikes over next three years

NB Power, New Brunswick's public utility, is proposing to increase electricity rates by an average of 5.5 percent over the next three years. This proposed hike equates to an additional $13.25 monthly bill for a household using 1,350 kilowatt hours of electricity. The utility claims the rate increase is necessary to fund the maintenance and modernization of its aging infrastructure.

Notably, this submission marks a departure from NB Power's previous practice of proposing annual rate hikes. If approved, the new rates could take effect as early as April next year, pending a review by New Brunswick's power regulator. Last year, NB Power suggested a 4.75 percent increase, which was later adjusted to 4.29 percent for the ongoing fiscal year.

The proposed hike might also result in local rates surpassing those in other provinces. An independent review by three experts, conducted earlier this year, revealed that NB Power is grappling with issues like aging infrastructure and a substantial $6-billion debt. While the new plan aims to slow the increase of debt, it does not aim to reduce it.