The New Brunswick Energy and Utilities Board has criticized N.B. Power for failing to investigate a cheaper repair option at the Point Lepreau Nuclear Generating Station. This oversight means you and other customers are now responsible for the costs. According to a recent report from CBC News, the utility missed out on up to $158 million in potential savings.
The Urgent Repair
The board retroactively approved the 2025 refurbishment of the main electrical generator at Point Lepreau. While the board agreed the repairs were urgent and not done in bad faith, it highlighted a severe lack of analysis. The board stated this showed a lack of rigour in decision making.
N.B. Power discovered a fault in the main generator in the summer of 2024. A lack of replacement parts and expertise made full repairs impossible for at least a year. The utility designed and executed a temporary fix to keep the station running through the winter.
The Unasked Question
N.B. Power hired Toronto consulting engineer Ian Thompson to certify the temporary repairs for one winter. The utility failed to ask Thompson if the fix could hold up for two winters. N.B. Power planned to start full repairs in August 2025. Evidence at the hearing showed delaying the project until April 2026 could have saved up to $158 million. Spring brings weaker electricity demand and cheaper replacement power costs.
Thompson testified that no one asked him to evaluate a longer timeline. “We never thought about it beyond nine months when we wrote this document,” Thompson said. “I could have been convinced to go a bit longer, but we weren’t asked that question at that time.”
N.B. Power Defense
Steve Bagshaw is the chief nuclear officer and site vice president for Point Lepreau. He argued the $158 million figure represented only potential savings.
“Operating longer with the temporary repair, there were no guarantees for the duration of that temporary repair. And so risk associated with extending operation could not be precisely quantified,” Bagshaw said.
He noted the consequences of an unplanned outage are severe. During a recent cold snap, an unexpected shutdown at Lepreau would have cost about $10 million per day in replacement power.
The Cost to You
The board scolded N.B. Power for seeking retroactive permission. This approach prevented the board from assessing the prudence of the project beforehand. Under current regulations, the costs for this generator repair fall directly on N.B. Power customers. You will see a rate rider or surcharge added to your bill to cover this massive expense.
Frequently Asked Questions
Why is my N.B. Power bill going up?
N.B. Power is adding a surcharge to customer bills to pay for urgent generator repairs at the Point Lepreau Nuclear Generating Station.
How much money could N.B. Power have saved?
Evidence shows the utility could have saved up to $158 million by delaying the repairs until the spring of 2026 when electricity demand is lower.
Why did N.B. Power not delay the repairs?
N.B. Power officials stated that extending the temporary fix carried unquantifiable risks. An unplanned outage during winter could cost $10 million per day in replacement power.
Great that the Utilities Board is publicly criticising NB Power, but criticism isnt accountability. The government needs to demonstrate that NB Power management accoutable and should use all mechanisms that exist to demonstrate that thei government is setting the tone of accountability by taking action that clearly holds management to account. The CEO of NB Power recently received a financial bonus for doing a good job, well that goes both ways, penalities or at least no bonus when savings of millions of dollars are missed!