Updating the structure of electricity rates is an important part of NB Power’s commitment to ensuring rates better reflect the cost of serving different customer groups and support a reliable, sustainable electricity system.

On April 30, NB Power filed the next phase of our Rate Design Modernization plan with the New Brunswick Energy and Utilities Board (NBEUB), which includes proposed changes to the Net Metering Program. This filing is part of a long-term process, in response to direction from the NBEUB, to review and update how electricity rates are structured in New Brunswick. 

There has been increased discussion about the proposed updates to net metering. This overview explains the proposed changes, why they are being introduced, and what they mean for customers.

NB Power continues to support solar and customer-owned renewable energy

Solar PV generation remains the most common choice for customers who want to self-supply electricity in New Brunswick, and growing customer interest shows that the program has been successful in encouraging adoption.

The proposed updates focus on how the program is structured so that it remains sustainable and fair as participation grows to support continued solar adoption while helping ensure the system works for everyone.

What is cross-subsidization and how does it negatively impact customers

Cross subsidization occurs when some customers do not pay the full cost of the electricity system required to serve them, resulting in those costs being borne by other customers. In the case of the current net metering program, this happens because participants reduce their energy purchases and receive credits for exports but still greatly rely on the grid, especially on cold winter mornings and nights when the sun isn’t shining but system costs and stress are highest to supply them anytime there is no solar production. This means their payments may not fully cover the infrastructure and system costs they depend on, and the remaining costs are recovered from non-participating customers, including those who are unable to install a solar system.

In practical terms, when some of the costs of serving solar customers are not fully recovered through their bills, those costs are shared across all customers.

Analysis indicates that, under the current rate structure, this cost shift will grow over time and increase overall rates for all customers if left unaddressed.

The proposed changes are intended to ensure:

• All customers contribute fairly to the cost of the grid
• Solar customers still receive value for the energy they export in line with its value to the grid

Demand charge changes

The demand charge being introduced for residential customers will better reflect how customers use the grid. Demand measures the maximum electricity required at a given moment, which drives the need for system capacity and infrastructure. The updated design introduces a demand component based on how electricity is used during a full hour, not on short spikes.

Adding a demand component ensures customers contribute to the cost of maintaining the system, not just the energy they consume. This helps recover fixed system costs, which are not reduced simply because a customer consumes less energy overall. Customers with higher peak demand place greater strain on the system, and the updated structure ensures costs are more accurately allocated.

Demand-based pricing also encourages customers to manage when and how they use electricity. By sending clearer price signals, the new structure supports more efficient energy use and helps reduce system peaks.

The demand component is a key tool to address cross-subsidization and separating demand from energy charges helps close the gap where some customers were not fully covering the infrastructure costs they rely on.

10-year grandfathering period

Existing net metering participants, and those approved before the proposed changes take effect, will remain under current rules for up to 10 years.

This transition period:

• Provides stability and certainty for customers who already invested in solar
• Aligns with the broader goal of predictability in rate design
• Allows time to adapt to future program changes

Solar customers are generating power for their own use

Under the net metering program, customers use the electricity they generate to meet their own needs in real time. Only excess energy, when more is produced than needed, is exported to the grid.

This means solar customers directly benefit from their systems by reducing the electricity they need to purchase.

Industry involvement

Through previous regulatory proceedings, industry and large customers asked the New Brunswick Energy and Utilities Board (NBEUB) to address issues such as:

• Value of solar
• Cost allocation
• Virtual net metering

This proposal responds to those requests while aligning with the NBEUB’s goals of equity, clarity, and predictability in rate design.

Understanding solar exports and the grid

Solar generation is strongest during sunny summer days, but New Brunswick’s highest electricity demand occurs during cold winter months before the sun rises.

This means:

• Solar exports do not significantly reduce system peak demand
• The grid must still be built to meet winter peaks, when solar output is low

Because of this, solar exports have limited impact on reducing fixed generation, transmission and distribution capacity costs.

What is peak demand—and why does it matter?

Peak demand is the point when the electricity system is under the greatest pressure, typically cold winter mornings in New Brunswick.

Even with solar systems, customers:

• Heavily rely on NB Power during these peak periods
• Require the system to be available when solar is not producing

That’s why recovering the costs required to meet peak demand is important to maintain a reliable system for everyone.

Evidence shows that solar generation does not align with system peaks in New Brunswick.

This is why:

• Export credits are designed to reflect the value of energy at the time it is delivered
• Rate design focuses not just on total energy produced, but when it is produced

Expanding opportunities for businesses

NB Power is also proposing an increase to the maximum size of non-residential systems to 500 kW, with exceptions up to 1 MW considered. This supports larger investments in renewable energy and provides more flexibility for businesses and institutions.

A balanced approach for the future

NB Power’s proposed updates are intended to support a balanced approach that:

• Supports continued solar adoption
• Ensures fairness between participants and non-participants
• Maintains a reliable grid for all New Brunswickers
• Responds to evolving customer needs and industry input

These changes are part of a broader effort to modernize rate design, ensuring it is equitable, adaptable, and transparent for years to come.

We all know the feeling when an unplanned power outage occurs. First you might see a light flicker in your house. Then, maybe a second blip. And then, it happens. Without any real warning, the lights go out and that visceral feeling of fear and uncertainty, often felt deep in your gut, kicks in. Your day is immediately changed.

Preventing that situation is what keeps everyone at NB Power accountable to our customers and firm in our commitment to ensure they’re provided with a safe, reliable and secure supply of electricity. We do everything we can to prevent these moments of unplanned power loss and work hard to get our systems back online so our customers can stay safe and warm and return to their personal and professional lives with as limited disruption as possible.

Energy security is a core part of our mandate. That means more than keeping the lights on during storms — it means ensuring New Brunswickers have a stable, dependable supply of electricity year-round, for today and for generations to come. The hard truth is that ensuring power for New Brunswickers is getting increasingly hard for us to deliver on.

With a growing demand for electrification from our customers who are rising in numbers, aging infrastructure and a need to transition to produce cleaner energy, we need to act now if we want to ensure New Brunswickers continue to have access to the power they need when they need it.

We are running out of generation. In the past, we could rely on surplus generation or purchase extra power from our neighbours. Today, their own energy security challenges mean they no longer have excess power to sell, and our aging system can’t be taken for granted.

To protect New Brunswick’s energy future, we need to take decisive steps now. Strengthening our own energy security will give us greater stability and more control over our province’s long‑term future.

This winter season has gotten off to a colder start than last year with December being about 20 per cent colder than last year. This meant we faced a higher demand for electricity much earlier in the winter season, and this was compounded by Point Lepreau, one of our largest generating stations, being offline.

Thanks to NB Power’s intentionally diverse energy mix of hydro,wind, coal, natural gas-powered stations, solar, and a little help from the neighboring provinces, our team worked diligently to ensure that New Brunswickers had the generation they needed during this cold snap, and no electricity shortages occurred. Point Lepreau is now back online and I’m proud of the team of New Brunswickers that worked hard to ensure none of our customers were left in the dark. But I will say, it was close, too close, and clearly showed us that the reality is, the outcome could be different in a not-so-distant future.

For years, we’ve heard of other jurisdictions (Australia, United States and Alberta, for example) experiencing blackouts due to energy shortfalls under peaking conditions. Jurisdictions facing these shortfalls are now inching closer to home. In recent weeks, Prince Edward Island issued notice that load shedding, another term for rotating outages to alleviate stress on maxed out grids, could be used this winter to protect their systems. And Quebec reportedly had a close call in early December during the same cold snap we experienced. All of our neighboring provinces are experiencing the same generation shortages and the same load challenges.

Here in New Brunswick, we’re not there yet, and we need to keep it that way. Our energy mix remains strong but we need more in-province built generation, and we need it now. We also need our customers, governments, and the business community’s support and buy-in to accelerate this.

Since 2024, we’ve entered into power purchase agreements for 675MW of renewable energy and we’re continuing to add more. In December, we issued a call for a partner to build a Battery Energy Storage System, and we’re working to get a new generating station online in Centre Village that will cover gaps when our renewable stations are offline due to a lack of wind or sun. We’re also continuing to invest in our existing powerhouse clean energy stations - Point Lepreau and Mactaquac included - to ensure their reliability for decades to come.

We’re balancing all of this necessary grid-strengthening work in a way that limits impact on our customers, particularly those who are struggling to pay their bills. We’re continuing to seek out new partnerships to ensure New Brunswickers benefit from increased and stabilized sources of power generation.

We continue to face opposition from some New Brunswickers about our journey to add new generation, and our plans for the future. To them, I say please reach out. We’re committed to transparency and are always happy to discuss the decisions we make, the reasons behind them and the oversight on these decisions.  

Our team of New Brunswickers is working for New Brunswickers, every day, to ensure families are safe, warm and reaping the benefits of a stable supply of electricity.

NB Power has reached a major milestone in our grid modernization journey—with over 300,000 smart meters installed on homes and businesses across the province. 

With nearly 80% of the rollout complete, we are in the final stretch of this transformational project, bringing more customers the tools and benefits smart meters provide every day. 

What this means for our customers 

Customers with smart meters can now: 

• Track and manage energy costs with user-friendly online tools 
• Receive faster service with remote connections, disconnections, and meter readings 
• Be better prepared for the future and alternative energy sources like solar panels 
• Support a smarter, more efficient, more reliable grid 

Independent review confirms accuracy 

An independent Residential Billing and Metering Assessment confirmed that smart meters are both accurate and reliable. The review found no evidence of meters over-reporting electricity use and explained that higher bills experienced this past winter were due to colder temperatures, longer billing cycles, and rate increases—not smart meters. 

These findings have helped correct misinformation and build confidence in the technology. More customers are taking advantage of smart meter tools and are feeling more in control their energy use. 

A smarter grid for New Brunswick 

Smart meters are part of one of the most significant infrastructure upgrades in NB Power’s history. By making our grid smarter, more efficient, and more resilient, we are ready to meet the needs of our customers--today and in the years ahead. 

Thank you, New Brunswick 

Thank you to our customers for embracing this transformational change and our employees and partners for your hard work and dedication. Together, we are building a future-ready grid to benefit all. 

To learn more about smart meters and the benefits they bring, visit nbpower.com/smartmeters

 

With active wildfires in parts of New Brunswick, we’re working closely with emergency management partners to help protect communities and the grid during this unprecedented weather.

Record-breaking temperatures can also impact our lines. For the safety of our communities and to prevent a greater risk of fire, we sometimes have to initiate temporary outages to safely complete critical repairs or maintenance. We know outages are disruptive, and we work hard to keep them as short as possible.

While we work to protect the grid and communities, you can also take steps to be ready for an outage during extreme heat, please refer to the government of new Brunswick web site: Heat Alert and Response System - gnb.ca

• If you lose power, report your outage at 1-800-663-6272 or nbpower.com/outages
• Have your 72-hour emergency preparedness kit ready.

The safety of our employees and all New Brunswickers remains our priority as we navigate these challenging conditions together. 

Stay informed about the wildfires:  NB EMO Fire Watch 

Access safety resources: NB EMO safety tips 

At NB Power, we understand the importance of providing our customers with accurate and transparent information regarding their bills. Recent concerns about metering and billing accuracy have prompted an independent assessment, and we want to keep you informed about our progress. 

Yesterday, the Chairman of the NB Power Board of Directors notified the Minister responsible for Energy that work on the independent review is ongoing and the report would not be ready for the appearance before the standing committee on public accounts this Thursday.  Despite our best efforts, the reduced timeline did not allow us to thoroughly consider the concerns raised by New Brunswickers. We believe it would be a disservice to provide an incomplete review that does not fully consider your concerns. 

While the initial review has not identified any issues with our metering and billing systems, we are not satisfied that it digs deeply enough into two specific areas of concern: 

• A statistically significant sample comparing smart meters to legacy meters across the province. 
• Specific work on a sample of New Brunswickers who have registered as part of the review process. 

This additional work is ongoing, and we anticipate it will be complete in April. Once the review is finalized, we will release the report publicly and are prepared to appear before the standing committee on public accounts if requested. 

Supporting our customers 

We recognize that rising costs, including electricity, are impacting your daily lives. Since January, we have taken several proactive steps to support our customers: 

• Completed thousands of high bill investigations through our Customer Care department, with the majority resolved by factors such as temperature, customer behavior, and increased billing days. 
• Tested 20 smart meters and 20 traditional meters using Measurement Canada standards, identifying no issues. 
• Relaxed enrolment for the Equalized Payment Plan program to assist customers with up to $1,200 in arrears. 
• Conducted an internal investigation to understand the causes of high bill concerns and improve customer understanding. 
• Waived late payments for residential customers retroactive to January 1st, 2025, until this work is complete. Any customers that have paid late payments charges in January and February will be reimbursed in the form of a credit on their bill.

Addressing your concerns 

We understand that this delay may be frustrating, but it is essential to ensure the review is thorough and considers all your concerns. If the review uncovers any issues that need to be addressed, we will act immediately to rectify them, including refunding customers if necessary. If you have questions about your bill or would like to explore ways to manage your energy costs, please contact NB Power at (506) 663-6272. Our advisors are available to assist you.

A call for respect and understanding 

We acknowledge that this situation is challenging, and we ask for your patience and understanding. Our frontline employees are dedicated to assisting you and deserve to be treated with respect.  

Thank you for your continued trust and support. We remain committed to ensuring you have confidence in the accuracy of your billing and to providing you with the highest level of service.