Distribution network key to developing green power - council
Published Tuesday November 3rd, 2009
New Brunswick should keep control of its electricity distribution network to promote the development of green power, says David Coon, executive director of the Conservation Council of New Brunswick.
"We need to keep control over the wires and electricity sales to New Brunswickers in order to make a rapid transformation to a sustainable, renewable energy future," he said Monday.
Last week, Premier Shawn Graham signed a memorandum of understanding with Quebec Premier Jean Charest to sell most of the assets of NB Power to Hydro-Quebec for almost $10 billion.
Among the assets to be sold is the New Brunswick Power Distribution and Customer Service Corp. That's the company that distributes power to homes and businesses, not the transmission company that moves power between jurisdictions.
The distribution company reported revenues of $1.36 billion and assets of $796 million, according to NB Power's 2007-08 financial report.
The conservation council said in a news release that it will be easier to help New Brunswickers reduce their energy use, convert from electric heat and sell renewable power to the electricity system if the NB Power Distribution and Customer Service Corp. remains in public hands.
"To finance energy efficiency, an off-electric program and renewable energy, the provincial government should place a public benefits levy on the profit Hydro-Quebec earns from New Brunswickers," said Julie Michaud, climate action co-ordinator for the conservation council.
She said that revenue should flow to New Brunswick through Efficiency New Brunswick and the new Renewable Energy Development Corp.
"There are all kinds of problems with the deal when you start to drill down into it," said Coon.
He said NB Power's distribution company isn't so valuable that its absence would scupper the deal.
Coon said that the deal would still have the environmental benefit of replacing polluting power sources here with clean hydroelectric power in Quebec. But that doesn't mean that overall it's a good deal for the province, he said.
Coon said that Hydro-Quebec shouldn't be exempt from taxes or levies on income earned in New Brunswick as proposed in the memorandum of understanding.
On Monday, Energy Minister Jack Keir said nothing in the agreement would prevent energy development in New Brunswick or the government's so-called energy hub.
He said New Brunswick's biggest advantage is its geographic location and that doesn't change.
"Whoever owns the utility doesn't change the fact that there are synergies associated with having the oil refinery very close to the LNG plant with the nuclear terminal in New Brunswick," he said.
"They don't have to be owned by the province."
The oil refinery and the LNG terminal are not owned by the province, he said.
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