New Future for NB Power, New Opportunity for New Brunswick
I welcome this opportunity to respond to your editorial of November 11 regarding the proposed agreement between the New Brunswick government and Hydro-Québec.
At the outset, I think it’s important to look at the larger context in which our government decided to pursue this agreement. Since coming to office, we’ve led the country in job growth, improved our kids’ reading skills, increased our population and lowered taxes for New Brunswickers.
We’ve made significant investments in post-secondary education. We’ve removed the parental and spousal contribution from student loans. We introduced New Brunswick’s first two year tuition freeze at public universities, a doubling of the tuition rebate and a new timely completion benefit.
These achievements move us closer to our goal of self-sufficiency and the kind of opportunities that will allow you to work and live here in New Brunswick. But there remain roadblocks.
As the world emerges from a global economic downturn, we need every advantage we can get to protect and create New Brunswick jobs. New Brunswick companies have long said that in order to do this, we need lower power rates.
Our current dependence on carbon-based fuels comes at a cost both environmentally and financially as we foresee carbon taxes or cap and trade system. In 2004, more than 40% of New Brunswick’s greenhouse gas (GHG) emissions came from energy generation.
NB Power’s $4.8 billion debt is simply not manageable in the long-term. As we look down the road at the costs required on refurbishment projects and carbon fuels, that debt would grow. Doing nothing risks our financial flexibility to fund projects and initiatives that are important to New Brunswick’s success.
Recognizing that the status quo in energy is standing in the way of self-sufficiency, early this year I began a conversation with our neighbours in Quebec to explore the potential for partnerships. On June 23, those conversations had progressed to a point where Premier Charest and I launched formal discussions. At that time I was clear about our objectives: “I believe it is necessary to further explore opportunities for increased collaboration with Quebec in this sector, especially with regard to clean and renewable energy supplies at a competitive cost.”
Through the course of the discussions it became evident that the best way to achieve these objectives was with the proposed agreement unveiled on October 29.
The proposed agreement will deliver lower rates. The average family that heats with electricity would save $1,400 over the next five years. Of the $5.6 billion in rate savings, nearly 60% of those savings go to residential, commercial and wholesale customers. The rate savings provide industrial stimulus up-front, but more savings for families and small business in the long-term. For industry, lower rates combined with our plan for lower taxes mean more jobs saved and more jobs created.
This proposed agreement means lower debt. Almost 40 per cent of the province’s debt would be wiped off our books; the largest single debt repayment in the province’s history.
And this proposed agreement would lower our dependence on carbon fuels. We would improve on our Climate Change Action Plan target, by reducing emissions to six per cent below 1990 levels. This means cleaner air and a cleaner province for our kids and grandkids. And we avoid the costs of carbon that we know are coming.
Lower rates and lower unemployment, lower emissions and lower debt – these are the reasons I believe so strongly that not only is this a necessary step, it is a good step.
The November 11 editorial called on readers to make their voices heard. Since the Memorandum of Understanding was signed, our government has provided and will continue to provide details around the agreement.
There are many ways you can be informed and involved. Visit lowerratesnb.ca to read the full Memorandum of Understanding and learn more about what the deal really means. Follow the upcoming legislative debates and the proceedings of the legislative committees or talk to your MLA.
Our objective is for a final agreement to take effect on or about March 31, 2010. As we prepare the legislative framework to present in the Legislative Assembly, we are taking into consideration the feedback we’re hearing from New Brunswickers to ensure that the final deal is the best deal for our province.
I feel very strongly that we have an opportunity to move forward; an opportunity that presents real and lasting benefits for New Brunswickers. This is the single biggest step our province has ever taken towards self-sufficiency. I encourage you to be part of the conversation.
Shawn Graham
Premier of New Brunswick
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