Andrew’s Rantings

There is a lot of information, mostly against, the sale of N.B. Power to Hydro Quebec. The Multi Billion dollar sale will reportedly lop off a good size of the provinces debt, which we know to be false. New Brunswick auditor general Mike Ferguson explained in this CBC News article.

Premier Shawn Graham also promised never to sell the power commission in his election promises. A quote from his campaign in 2003 speaking about the sitting PC government. The first is the government’s decision to privatize NB Power and to sell off the assets. Very clearly our position has been that we want NB Power to remain a publicly-owned utility.”

More of his 2003 election promises from CBC News: Liberal Leader Shawn Graham says he’ll shove private industry out of health care, beat back rising auto insurance premiums with tough new legislation, give seniors a better deal on drugs and nursing home care, lower class sizes for young students and keep NB Power in the hands of taxpayers.

Hydro Quebec, a provincially subsidized company, has been raising the rates to Quebecors now steadily since it’s freeze on power rates ended in 2003. That equals a 2.66% increase yearly!

A small clipping from a Maclean’s magazine: Things are always changing in Quebec, but for a long time the province’s citizens could count on at least one constant—cheap, government-subsidized energy. But with a $4-billion-plus deficit staring it in the face, Jean Charest’s Liberal government is looking for ways to save money, and one idea it has floated is to raise the price of electricity at the government-owned Hydro-Québec.

The province had a moratorium in place on rate increases between 1999 and 2003—since then, home energy prices have grown by 16 per cent. Now it looks like they might climb higher, perhaps significantly. The Liberal government is considering raising rates by an average of $265 per household per year—doing so could bring in revenues of $1.4 billion. It could also mean the Liberals might be able to avoid other proposed fee increases, including CEGEP tuition hikes and adding toll roads.

NB Power usually raises it’s rates 1.5 % per year, give or take. Our regulatory board oversees that the rate increase is justified and approves or denies it based on their findings. Taking the two averages, the 2.66% rate after the 5 year rate freeze would take 7 years to overpass the steady 1.5% increase we are paying now without any freeze from N.B. Power.

Basically we get cheaper power for 13 years, then the rate increases start piling up higher.

And this doesn’t include volatile oil and natural gas prices, which can go through the roof at even the mere speculation of problems in the supply chain. Hydro Quebec is going to be able to purchase their bulk fuel at an even more discounted rate if they take over N.B. Power. They will be purchasing bulk fuel for the power plants in NB that they acquire, and bulk buying equals savings every time. They will make millions off of this alone.

See another interesting list of issue’s involving this sale here at the contrarian.

I am personally opposed to the sale of NB power to Hydro Quebec. It is never a good idea to sell off one of your biggest assets, period. Especially if the people in the province are getting the shaft at the same time.

Leave a comment below either for or against the sale of NB Power, and I will forward all of the comments to Premier Shawn Graham. The more participation the better, be heard!