NB Power's debt continues to rise

NB Power’s debt is continuing to increase even as the utility posts higher than anticipated revenues, according to its third quarter financial results.

The utility released its latest financial update on Thursday. It indicated NB Power’s earnings are up $68 million and is on pace to hit its budgetary targets for 2011-12.

But NB Power’s financial statement also showed the utility’s debt has risen to $4.532 billion up from $4.45 billion in March 31, 2011.

The utility attributed $82 million in new debt to the ongoing Point Lepreau refurbishment project and other capital spending.

Gaëtan Thomas, the president and chief executive officer of NB Power, said in a statement the utility is working hard to cut its costs.

"Our employees are committed to working safely and efficiently to produce reliable power and keep our rates competitive and stable for the people of New Brunswick," he said in a statement.

NB Power started a 36-week-long plan with its "implementation partner" in November to find $30 million in cost savings "through productivity and process improvements."

The utility also gained $15 million in miscellaneous revenue by selling a dragline from its former coal operations.

The Crown corporation also announced it has signed a tentative agreement with Edmundston Energy.

NB Power did not disclose any financial details but said the agreement would see Edmundston Energy expand its customer boundary.

The agreement includes a 20-year power purchase agreement that will see NB Power buy all of Edmundston Energy’s generation from the Madawaska and Green River hydro dams and NB Power will supply all of Edmundston Energy’s power demands for the next 20 years.