J.D. Irving Ltd. and N.B. Power clash as rate hearings get underway

A scheduled nine-day hearing into N.B. Power's request for an 8.9 per cent rate increase has begun in front of the Energy and Utilities Board, and an intense early grilling from a lawyer representing one of its largest customers suggests it could be a long two weeks.

Nancy Rubin, counsel for J.D. Irving Ltd, criticized pay and performance at the utility and suggested N.B. Power acting president Lori Clark was delivering rehearsed statements instead of answering questions — all in the first few minutes of the hearing.

"Ms. Clark, can you listen to my questions," Rubin responded after one answer she considered unsatisfactory.

"I know you have information to communicate, but …" 

Rubin also clashed with N.B. Power lawyer John Furey over whether the Crown corporation has been properly adhering to EUB guidance published in previous decisions on how to balance competing duties to stay financially viable but keep rates low and stable for customers.

Furey suggested Rubin's question was disingenuous.

"She can read them herself," Furey said of the EUB decisions that touch on the issue.

"I suspect she already has. She probably knows the answer to the question. To ask me to go do that research for JDI, I object. I don't think that's appropriate."

EUB chair Francois Beaulieu sided with Furey, but Rubin made it clear J.D. Irving is not happy with the proposed rate increase and will be fighting it vigorously.

The utility is also facing questions from lawyers representing other industries, competitors, municipal utilities, the public and the EUB itself.

It is N.B. Power's first appearance at a rate hearing in three years, and the utility is making the case that its financial situation has turned dire.   

Pandemic upheavals, supply chain problems, runaway inflation and performance troubles at generating stations, especially the Point Lepreau nuclear plant, have battered the utility in different ways.

With its rates climbing just 3.8 per cent in three years during those troubles Clark told the hearing N.B. Power is in need of an infusion of new money.

"As much as we dislike rate increases for our customers we also have a fiduciary responsibility to ensure that we are covering our costs as a utility," said Clark, who is the first president to personally appear at a rate hearing since David Hay more than a decade ago.

In total, seven N.B. Power witness panels are scheduled to testify about all aspects of the company's operations during the hearing. Additional experts hired by the Energy and Utilities Board and the public intervener will also give evidence.