NB Power does its best to project the costs of delivering electricity for the upcoming year. These forecasts are based on a number of factors including energy consumption, weather, commodity prices, exchange rates and hydro flows. Sometimes, due to factors outside of its control, variances can occur, resulting in additional revenue or losses.

Until now, NB Power had to absorb any variances, whether they were positive or negative. In recent years, NB Power has experienced primarily negative variances, which has become increasingly challenging for us.

Following changes to the Electricity Act in 2021, a new mechanism is in place to provide greater transparency to customers and help us ensure the actual costs of delivering electricity is recovered in rates.

Regulation now requires NB Power to file a Variance Account Recovery with the New Brunswick Energy and Utilities Board by December 15 in each fiscal year. If actual costs come in lower than anticipated, New Brunswickers can receive a reduction in rates. If actual costs come in higher than anticipated, New Brunswickers can receive an increase in rates.

On Dec. 15, 2022, NB Power filed with the Energy and Utilities Board for a reduction of costs to customers equivalent to 0.12 cents per kWh or an approximately 1% rate reduction for the average residential customer.

This filing is separate from the 8.9% rate request made as part of the General Rate Application in October 2022. That process is ongoing.

If the EUB approves both the General Rate Application and Variance Account Recovery Filing as submitted, customers will see an approximate 1% reduction on their electricity rate as well as an 8.9% increase, seeing residential rates go up 7.9% starting in April 2023. This will mean an increase of $14.40/month for the average residential customer.

Both the application and filing are currently under review by the Energy and Utilities Board, which will issue its decisions in early spring.