Despite not knowing proposed rate increase, EUB pushes on with hearing

Ongoing secrecy around what insurance companies will pay NB Power for claims arising from the Point Lepreau nuclear plant refurbishment — and the effect that will have on power rates — threw the schedule of its ongoing marathon rate hearing into more turmoil Tuesday.

The hearing is already four weeks behind schedule following a number of delays and unexpected developments and participants were divided on whether proceedings should be suspended again until more is known about the Lepreau deal.

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"It does seem like things are taking a fairly hard right turn here," said J.D. Irving Ltd. lawyer Christopher Stewart during a submission in favour of halting the hearing until next week when NB Power will unveil a new rate increase request based on its insurance windfall.  

"Let's see that evidence and let's move on from there. We don't know what we don't know." 

Keep details secret

NB Power announced on Monday it successfully ended a six-year legal fight with various insurance companies over their refusal to pay damage claims it made under policies taken out to cover the Lepreau refurbishment.   

The claims were for more than $300 million but the utility has not said how much of that will be paid. It argues the information should not be released because it would damage attempts to pursue further compensation from its contractor at Lepreau, Atomic Energy of Canada Ltd.

"Both NB Power and the insurers have a substantial commercial interest in maintaining confidentiality with respect to the settlement agreement to the fullest extent possible for as long as possible," the utility claimed Monday in explaining to the EUB why it wanted to keep the settlement details secret.

NB Power has said the settlement is large enough to reduce the need for the full two per cent rate increase it applied for this year but it has been given until next Wednesday to calculate what that new rate increase will be.

Stewart and EUB lawyer Ellen Desmond argued Tuesday there was a fundamental problem in continuing with a rate increase hearing when the proposed rate increase is a mystery, but the hearing is so far behind schedule other participants argued to keep moving anyway.

More stuff to cover

NB Power lawyer John Furey said there are a number of issues to be covered unrelated to rates and the board should push forward on those.

"We have work that can be done and so NB Power's view is that we should press on in the areas we can," said Furey.

Others, like public intervener Heather Black, agreed further delays would be worse than waiting for more information on the financial implications of the settlement.

"It's very difficult to know in the absence of seeing the evidence to know what the best approach is so in the absence of knowing I think we should continue on," Black said. 

Black and Stewart also gave notice they would be objecting to NB Power's blanket request to keep details of the Lepreau settlement secret, an issue that will be heard within the next two weeks.

Board vice-chair Francois Beaulieu ruled the rate hearing itself would continue in the meantime and concentrate on issues not directly connected to power rates.

The hearing, which has covered smart meters, energy efficiency programs, storm damage surcharges and the rate increase began Feb. 7 and was originally scheduled to conclude Feb. 23.