NB Power deal delayed for public debate

The New Brunswick government is delaying the $3.2-billion sale of NB Power assets to Hydro-Québec for nearly two months in order to hold a full public debate on the controversial deal.

A committee of MLAs will hold at least 50 hours of public hearings in April, the Liberals announced Friday morning.

But House leader Greg Byrne said the public consultations won't lead to any changes to the agreement itself.

'The agreement is a final agreement, and we do not anticipate we will be making changes to that agreement.' — Greg Byrne, House leader

"In terms of this agreement, the agreement is a final agreement, and we do not anticipate we will be making changes to that agreement.

"But it is important to put the details of that agreement before New Brunswickers. We have committed to doing that, and that's what we are doing."

Energy Minister Jack Keir said there may be changes to the province's energy regulations or to policy.

The full text of the agreement with Quebec, and legislation to enact it, will be introduced in the legislature by the end of March.

The March 31 deadline to sign the agreement has been pushed back until May 21.

The process is little more than a communications exercise, said Conservative Opposition leader David Alward.

But the government has backed away from an outright sale, from a firm deadline and from a narrow consultation process, he said, adding that it is still possible the Graham Liberals can be pressured to abandon the agreement itself.

"We'll continue to push very hard," Alward said. "It's more important than ever that New Brunswickers stand up and be counted on this deal."

Premier Shawn Graham, however, maintains that the government plans to see the deal through, regardless of the political cost.

Divisive deal

Under the deal, Hydro-Québec would acquire most of the province's power-generation assets, but New Brunswick would maintain control of transmission and distribution.

New Brunswick's residential ratepayers will get a five-year rate freeze. Medium-sized industries will see a roughly 15 per cent cut in power rates and will have those rates locked in for five years while large industrial customers will see their power prices fall by roughly 23 per cent.

After five years, rates will increase with inflation and be regulated by the New Brunswick Energy and Utilities Board.

The deal was watered down from the original $4.8-billion package announced in October because of a public outcry and open dissent within the Liberal caucus.

But the revised deal continues to be controversial, prompting demonstrations and meetings of grassroots groups opposed to the selling of the province's energy assets.

Earlier this month, the premier asked Saint John-Fundy MLA Stuart Jamieson to resign from cabinet for suggesting the deal be put to a referendum.

On Feb. 18, the Graham Liberals voted down an Opposition demand for a referendum.

The Opposition contends the government doesn't have a mandate to sell the majority of NB Power's assets to Hydro-Québec and the public deserves to have a voice on the issue, which will affect the province's future. There should be a referendum or the deal should be delayed until after the Sept. 27 provincial election, Alward has said.

A provincial election is scheduled for Sept. 27.