NB Power rate hearing focuses on Mactaquac replacement

​Officials from NB Power continue to face questions about its need to raise electricity rates by two per cent in October even though the Crown utility would make a profit this year without higher rates.

NB Power points to the looming need to deal with the end of the Mactaquac Dam by 2030. The dam is nearing the end of its life and must be replaced at a minimum cost of $2 billion.

NB Power has told the hearing that by increasing rates now and in the years leading up to dealing with Mactaquac, it will be in a better financial position to deal with the dam without having its options limited by its financial position.

The utility needs the province's Energy and Utilities Board to approve its request increase.

The recommended increase would about to about $4 a month on the average power bill, NB Power has stated.

The rate hearing is taking place at the Fredericton Convention Centre.