January 17, 2014
The New Brunswick Energy and Utilities Board (EUB) has ruled in NB Power's favour on matters relating to the Point Lepreau Generating Station (PLGS) Deferral Account. In its ruling, the Board accepted NB Power's financing costs and amortization methodology of the account, and the recovery of the balance in charges, rates and tolls. Click here to view the full ruling.
"Our customers will not see any increases in rates going forward as a result of the Point Lepreau refurbishment project," said Gaëtan Thomas, CEO and President of NB Power. "The costs related to Lepreau have been fully accounted for in our projections, and we intend to recover these costs through equal payments - similar to a home mortgage - made monthly during the 27-year life of the plant"
In its ruling, the Board accepted NB Power's evidence demonstrating that its current budgeted net earnings are adequate for the recovery of the PLGS deferral account. NB Power evidence proposed an equalized approach to the recovery of the deferral account based on the following:
- Ensuring stability and predictability of rates
- Providing for intergenerational equity among customers
- Ensuring simplicity and transparency
- Recognizing the impact on NB Power's long term financial goals
NB Power completed its case to the EUB on the matter during a two-day hearing in October 2013. This was the continuation of a hearing that began last January which resulted in the EUB accepting the positions presented by NB Power on the size and accuracy of the deferral account and on the expected 27 year forecasted operating life of the station.
"This ruling reinforces our strong commitment to the sound financial management required to ensure long-term, low and stable rates for our customers," added Thomas. "Our goal has been to ensure future generations do not bear an unfair financial burden from the Lepreau refurbishment while being open and transparent in our finances. "
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Fredericton, New Brunswick
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