If you pay a power bill in New Brunswick, you need to know about the latest findings from the provincial auditor general. New Brunswick’s energy corporation made poor choices with its planned natural gas power plant that exposed taxpayers to millions of dollars in financial risk.

According to a report from Global News, Auditor General Paul Martin revealed that NB Power entered a long term agreement without regulatory approval and picked equipment without looking at alternatives.

Costly Shortcuts and Financial Risks

The Renewable Integration and Grid Security project is a 500 Megawatt natural gas power plant proposed for rural southeastern New Brunswick. The project carries a final price tag of 2.8 billion dollars.

Martin noted that NB Power signed a contract lasting 25 years with United States firm ProEnergy to run the plant before the project received regulatory approval. This specific decision exposed NB Power to tens of millions of dollars in potential penalties. If the energy regulator denied the project, the utility owed ProEnergy 55.1 million dollars in early construction costs.

The auditor general also criticized NB Power for assuming most of the risk by acting as the sole owner of the plant. NB Power must pay for the fuel it produces regardless of consumption and takes full responsibility for emissions costs.

NB Power Defends Its Decisions

NB Power pitches the natural gas plant as an urgent response to prevent future energy shortages caused by retiring coal and oil facilities. The Crown corporation states the future plant provides a backstop when weather impacts renewable energy sources.

Andrew MacGillivray, chair of the utility board, and president Lori Clark released a statement following the report. They said the corporation had to make complex decisions during a period of heightened system risk. They pointed to increasing pressure on the grid and the potential for winter peak shortfalls during extreme weather.

MacGillivray and Clark also stated the utility confirmed with the energy board before signing the contract that the project required regulatory approval to move forward.

Unresolved Partnerships and Political Fallout

The project faces additional risks regarding unfulfilled Indigenous participation requirements. ProEnergy must establish an equity partnership with First Nations. Documents show the company entered an agreement with the North Shore Mi’kmaq Tribal Council last November, but the deal remains unformalized.

Government whip Jacques LeBlanc told reporters that NB Power representatives need to answer questions before legislators. Green Party deputy leader Megan Mitton called for the immediate cancellation of the project.

The provincial energy regulator approved the project last week. It still requires final approval from the Liberal government following an environmental assessment. The plant is scheduled to begin operations in August 2028.

Frequently Asked Questions

What is the new NB Power natural gas plant?

The Renewable Integration and Grid Security project is a proposed 500 Megawatt natural gas power plant located in rural southeastern New Brunswick.

Why is the auditor general criticizing NB Power?

Auditor General Paul Martin says NB Power took shortcuts that increased financial and regulatory risks. The utility signed a massive contract before getting regulatory approval and failed to study alternative equipment options.

How much will the new power plant cost?

The auditor general reports the final price tag for the natural gas power plant is 2.8 billion dollars.

When will the power plant open?

The natural gas plant is scheduled to be fully operational by August 2028, pending final government approval.