N.B. Power officially claims it broke even over the last four years. Auditor General Paul Martin says that is not true. According to a recent report first covered by CBC News, the utility actually lost $384 million. An accounting scheme hides these poor results and passes the financial burden directly to you.

How the Accounting Scheme Works

Five years ago, the provincial government created variance accounts for N.B. Power. This system transfers the financial risk of unexpected losses from the utility to its customers. When N.B. Power loses money, the utility shifts those expenses into these special accounts. Customers then pay down the balance through extra charges on their electricity bills.

Martin told a public accounts committee that this setup protects the utility’s financial results. “This somewhat masks an issue on their financial statements,” Martin said.

The Growing Debt on Your Bill

You are already paying for this debt. Since April 2024, New Brunswick electricity customers paid $100 million in surcharges to clear these accounts. The maximum surcharge is three percent on top of your regular consumption charges. However, this fee fails to cover the mounting losses.

The unpaid balance in these accounts grew from $114 million to $384 million. For every dollar customers paid down, N.B. Power added $3.70 in new debt. “This is growing faster than the money they are collecting to pay it off,” Martin said.

The Point Lepreau Problem

The Point Lepreau Nuclear Generating Station is the main source of this financial drain. The plant experienced multiple unscheduled shutdowns in recent years, forcing N.B. Power to buy expensive replacement energy. These unbudgeted costs flow directly into the variance accounts.

N.B. Power spokesperson Elizabeth Fraser McAllister stated the utility takes the findings seriously. She also noted the accounting practice follows standard rules and has provincial government support. Still, Martin warned that the utility must improve its performance. “Otherwise future ratepayers could face added costs for many years,” he said.

Frequently Asked Questions

Why is my N.B. Power bill higher?

You are paying a rate rider surcharge of up to three percent to cover N.B. Power’s unbudgeted financial losses.

How much money did N.B. Power lose?

The utility lost $384 million over the last four fiscal years.

What caused these massive losses?

Unscheduled downtime and production problems at the Point Lepreau Nuclear Generating Station forced the utility to buy expensive replacement energy.