Here’s a shocking truth: New Brunswick electricity customers might be stuck with extra charges on their bills for another eight years, and the debt they’re paying off is only getting bigger. But here’s where it gets controversial—despite customers already shelling out nearly $100 million in surcharges over the past two years, the special debt in N.B. Power’s 'variance accounts' has ballooned from $236.1 million to a staggering $354.8 million. How did we get here, and is there any end in sight? Let’s break it down.
In 2024, N.B. Power introduced a three percent surcharge on every electricity bill to tackle a growing debt in its variance accounts. These accounts were created three years ago to shift the financial risks—like unexpected production issues or fuel price spikes—from the utility company to its customers. In theory, it sounds fair: customers benefit from rebates in good years and cover extra costs in bad ones. But this is the part most people miss—the system was supposed to balance out, yet it’s spiraling out of control.
At a recent hearing, N.B. Power’s financial reporting manager, Abby Davidson, estimated that surcharges would need to continue until March 2034 to address the current debt. However, public intervener Alain Chiasson isn’t convinced. He warns that if the variance accounts keep growing, customers could face 'permanent' surcharges. And here’s the kicker: much of this mess stems from repeated production problems at the Point Lepreau Nuclear Generating Station, which has been underperforming for years.
By October 2023, the variance accounts were already $236.1 million in the red. Since then, customers have paid nearly $100 million in surcharges, but financial setbacks at the utility have pushed the debt even higher. Chiasson didn’t hold back, calling Lepreau’s performance 'abysmal' and expressing doubt it will improve anytime soon. If he’s right, customers are in for a long, costly ride.
Under current rules, the maximum surcharge customers can be hit with is three percent of their basic bill. N.B. Power expects to collect $60.3 million from this in the next fiscal year, but even they admit it might not make a dent in the growing debt. And with Lepreau shut down for much of late 2025, the situation is likely to worsen before it gets better.
So, what’s the takeaway? Customers are caught in a cycle where their payments aren’t enough to shrink the debt, and the utility’s struggles keep piling on costs. Here’s a thought-provoking question for you: Is it fair to keep passing these financial risks onto customers, or should N.B. Power rethink how it manages its variance accounts? Let us know your thoughts in the comments—this is one debate that’s far from over.
