New Brunswick utility is proposing rate hikes over next three years

FREDERICTON – New Brunswick’s public utility is looking to raise electricity rates by an average of 5.5 per cent for each of the next three years to pay for maintaining and modernizing its aging system.

The proposed hike works out to an increase of $13.25 a month for a home using 1,350 kilowatt hours, NB Power said in a rate application published Wednesday.

The new rates could come into force next April after a review by New Brunswick’s power regulator, in a lengthy process that includes a public hearing.

The average annual 5.5 per cent annual increases would result in a cumulative increase of 17.4 per cent over the three years, NB Power said.

Lori Clark, the utility’s chief executive, said the proposed increases are as low as possible despite being almost double Canada’s annual 3 per cent rate of inflation.

“We’re a cost of service utility and we have to cover the cost of doing business,” Clark told reporters in Fredericton. “We want to be open and transparent about what those costs are and what our challenges are.”

Wednesday’s rate application comes amid the utility’s multi-year effort to fix ailing infrastructure, including a critical hydroelectric dam west of Fredericton. It is also investing in new technologies, such as batteries, to prepare the grid for the future.

NB Power also proposed $4 billion in capital spending over the next three years. That includes cash to transition New Brunswick’s only coal-fired power plant away from fossil fuels to wood pellets by 2029. 

Still, the proposed increase for the 2027-28 fiscal year comes after rates jumped by more than 25 per cent over the last four years, following a decade of smaller hikes. 

Clark acknowledged the increases could be hard for ratepayers to stomach amid already high living costs. 

While NB Power tries to keep electricity bills as low as possible, Clark said the provincial government has a responsibility to help with affordability measures.

Clark said the utility is proposing three years of rate hikes in its submission — a first for NB Power — to allow households and businesses to plan ahead.

New Brunswick’s residential and large industrial rates currently fall in the middle of the pack when compared with other Canadian provinces. They are far lower than rates for customers in Maine and New Hampshire. 

Utilities in Quebec, Manitoba, British Columbia, Newfoundland and Labrador and Alberta all have lower residential rates per kilowatt hour, according to figures provided by NB Power. 

By the same metric, however, residents in Saskatchewan, Ontario, Prince Edward Island and Nova Scotia are paying more.

Should NB Power’s proposal be approved, Clark anticipates the utility would maintain a similar middle rank, since other utilities are also raising their rates.

Even with a green light from the regulator, the rates aren’t completely set in stone, Clark added. She said a huge storm that causes damage to power stations, for example, could require a bump in the electricity bills to cover the cost.

Earlier this year, a review of NB Power by three independent industry experts said the utility is struggling to cope with its many challenges and a $6-billion debt. 

NB Power’s three-year rate plan will only limit increases to the debt, officials said. The utility is projecting its net debt would rise to $10.8 billion over the next three fiscal years.

The third-party review also agreed with NB Power executives that rate caps and freezes by the provincial government in recent decades contributed to its debt. 

Earlier this year, Premier Susan Holt did not rule out setting limits on power rates. A government spokesperson did not immediately respond to a request for comment. 

Rate increases over the last four years were significantly higher than in the years prior. Rates approved by the regulator have only been slightly lower than what was proposed by NB Power.

This report by The Canadian Press was first published Oct. 7, 2026.