Electricity Rates in Saint John: Understanding NB Power’s Latest Filing

Saint John residents, take note: NB Power has submitted its annual Variance Account Recovery (VAR) filing to the New Brunswick Energy and Utilities Board (NBEUB) for the 2026/27 fiscal year. This filing, made on December 17, 2025, outlines adjustments to electricity rates based on the past year’s operational costs and revenues.

The VAR mechanism, introduced in 2021 through changes to the Electricity Act, aims to provide greater transparency for NB Power customers. It ensures that the actual costs of delivering electricity are accurately reflected in rates in a timely manner.

Impact on Your Bill

If approved by the NBEUB, the VAR charge for the fiscal year starting April 1, 2026, will increase by 0.04¢/kWh. For the average residential customer in Saint John, this translates to an increase of approximately 54 cents per month.

Lori Clark, President and CEO of NB Power, emphasized the utility’s commitment to managing its financial situation responsibly. She stated that while NB Power strives to accurately forecast costs, factors beyond their control, such as changing weather patterns, commodity prices, exchange rates, customer consumption, and hydro flows, can impact their bottom line.

Key Factors Driving the Adjustment

Several factors contributed to this year’s Variance Account Recovery application:

• Previous Year’s Balance: The balance carried over from prior fiscal years played a role in the current filing.
• Industrial Load Reduction: A decrease in industrial electricity consumption also impacted the financial outlook.
• Production Challenges: Lower than anticipated nuclear production and reduced hydro production due to drought conditions contributed to higher costs.
• Offsetting Revenues: These increases were partially offset by successful export opportunities, where surplus electricity was sold out-of-province during the summer months, generating additional revenue.

Clark reiterated that rate increases are considered a last resort, and the VAR mechanism helps spread costs over time to minimize the overall impact on customers. She highlighted that in 2023/24, customers actually received a credit on their bills following an NBEUB-approved VAR filing.

For more detailed information on NB Power’s annual VAR application, you can visit their official page: www.nbpower.com/en/about-us/regulatory/variance-account-recovery-filing.

Frequently Asked Questions

What is the Variance Account Recovery (VAR) mechanism?

The VAR mechanism is a process approved in legislation that allows NB Power to adjust electricity rates to account for differences between budgeted and actual costs that were outside of their control, such as weather patterns or commodity prices.

How will this filing affect my electricity bill?

If approved, the VAR charge will increase by 0.04¢/kWh, leading to an average increase of about 54 cents per month for residential customers starting April 1, 2026.

Why is NB Power filing for a VAR increase?

The increase is primarily driven by the balance from previous years, a reduction in industrial load, and lower nuclear and hydro production due to drought. These factors were partially offset by higher export revenues.

Did customers receive a credit in previous years?

Yes, in 2023/24, customers received a credit on their bills for 12 months following an NBEUB-approved VAR filing.