NB Power profits don't mean rate cuts

Energy Minister Craig Leonard says NB Power's record profits will not lead to lower power rates for the province's electrical customers.

"We're going to have positive years like this. But we can't squander them by lowering rates and getting ourselves back into the position we're in today, where rates have not been at a level to offset the debt," Leonard said.

NB Power made a record $330 million over the past two years, in part due to falling natural gas prices, which slashed the cost of making electricity, and in part to record water flows that boosted output at provincial hydro dams.

The Crown corporation released its financial statements on Monday, which reported a $106-million earnings increase from the previous fiscal year, from $67 million to $173 million.

The record profits surprised many given the long delays and cost overruns at Point Lepreau. Work on the Point Lepreau nuclear plant is years behind schedule.

NB Power also made $413 million in debt repayments but increased its total debt by $83 million, investing $363 million on the Point Lepreau Generating Station Refurbishment Project and $133 million for other capital projects.

Those losses won’t be counted until later this year, allowing the utility to make and lose money concurrently.

The Energy and Utilities Board will hear arguments on how to account for Lepreau later this summer, unifying NB Power's finances, which have allowed it to record big profits on its operations and huge losses on its nuclear refurbishment, separately, for several years.