NB Power backs away from proposed 'weather tax'

CTVNews.ca
March 23, 2018

NB Power is backing away from its attempt to create a so-called ‘weather tax’ that would result in customers seeing higher bills after extreme weather events.

New Brunswick’s power utility had asked the Energy and Utilities Board for permission to add a levy to help pay for the costs associated with significant weather events. The EUB was set to hear arguments over the next month.

However, NB Power issued a statement Friday, saying it has asked the EUB to withdraw its request for the ‘weather tax’ after hearing from concerned customers and shareholders.

“NB Power has heard from our shareholder and our customers who are anxious about the impact of the adjustment mechanism and we are listening to those concerns,” said Gaëtan Thomas, the president and CEO of NB Power in a statement.

“We recognize that our customers are uncomfortable with the uncertainty an adjustment mechanism may create.”

The move comes after New Brunswick Premier Brian Gallant said he would try to overrule the rate hike.

In an email obtained Thursday by CTV News, Gallant told Thomas the ‘weather tax’ has caused “great uncertainty among New Brunswickers who are being led to believe that individual regions could face huge spikes for isolated incidents of severe weather.”

Gallant said he didn’t plan to interfere with the EUB’s hearing process, but that he’s “strongly opposed to the idea of a weather tax.”

He said he would consider overruling the adjustment mechanism through legislation, should it be supported by the EUB.

Many residents in Hampton, N.B., says they’re relieved with NB Power’s decision.

“They finally realized it's not a good idea to do it, so why even bother trying," says resident Paul Cogswell.

"I don't really believe we should get stuck paying for that kind of thing,” says resident Bill McKee. “They say they can't budget for it, but sure they can."

The Opposition says say the weather tax debate wasn’t needed in the first place.

"This could have been nipped in the bud before it ever surfaced. Is it a publicity stunt that the premier has staged? I don't know. But it looks suspicious," says Opposition Leader Blaine Higgs

Earlier this week, a spokesperson for NB Power said New Brunswick has seen more frequent and severe weather events across the province.

“Because NB Power is not able to know when these major storms will occur and how much they will cost the utility, they are difficult to include in our annual budgets," said Marie-Andree Bolduc.

More than 130,000 NB Power customers were thrown off the grid by a damaging ice storm last year. Repair costs exceeded $30 million. NB Power took a similar hit after post-tropical storm Arthur ravaged the province in July 2014, with repairs costing $23 million.