As hearings are held this week and next to determine what kind of increase NB Power might get on power rates, the Energy and Utilities Board denied temporary measures sought by the utility.
EUB Chair Christopher Stewart began Monday’s session with the board’s decision on a motion made by NB Power in January.
At the time, NB Power said they wanted an interim rate increase of 4.75 per cent to being April 1, coinciding with their fiscal year.
Failing that, the utility had requested the EUB allow them to recover any lost revenue associated with a delay in implementing new rates after April 1 over the remainder of the fiscal year once a decision is made on the general rate application.
Stewart said the request had been based on a business decision made by NB Power.
Specifically, Stewart said NB Power had decided to push the general rate application hearing to a later date in favour of hearings about the Renewable Integration Grid Security (RIGS) project.
Those hearings took place from Feb. 9 to 13.
“NB Power made a series of business decisions before and after the RIGS motion decision, which taken together indicate that the delayed implementation of new rates was seen by NB Power or was a reasonably foreseeable outcome of NB Power’s business decisions,” Stewart said.
Stewart said NB Power had options to mitigate the risk of a delay but didn’t use any of them.
“An interim rate order is an extraordinary remedy and it is not intended to shield utilities from the known or reasonably foreseeable consequences of their own business decisions,” Stewart said.
Hearings on NB Power’s general rate application began Monday and are scheduled to continue through March 20.
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