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Controversial deal would dump assets for far less than they are worth while giving up control of future energy policy.
Fredericton (1 Feb. 2010) - A group fighting to prevent the planned $3.2-billion sale of NB Power (ENBP) to Hydro Quebec (HQ) says the deal would be bad for New Brunswickers even with the modified arrangements now proposed by the province.
The Coalition of New Brunswickers - NB Power Not for Sale held a news conference Friday to outline its reasons for opposing the sale. In essence, the sale would see the province giving up control of its energy future while disposing of public assets at a price significantly below what they are worth, the group argues.
The analysis, outlined in a letter to Premier Shawn Graham and members of the legislature, examined the revised memorandum of understanding released earlier this month between the two power utilities.
Because of significant public opposition, the terms were scaled back from a $4.8-billion deal announced originally in November. The revised deal would allow New Brunswick to retain control of power distribution but get rid of all of its generating capacity.
The analysis was carried out by engineer Bob Neill, a retired partner of the firm Neill and Gunter; Lyle Smith, a former deputy minister of transportation, and Frank Ryder, a former ENBP executive. Also contributing and signing the letter were members of a "Group of 20" made up of other professionals and experts on the issue.
The main points in the letter included the following:
- The province will lose a publicly-owned utility that has given New Brunswickers the lowest electrical costs in the Maritimes - substantially lower than New England - while allowing the province to set its own energy and economic polices over the past 60 years.
- New Brunswickers will lose control of their energy future because HQ is required to make decisions in its own best interest, not for New Brunswick.
- The benefits of temporarily reduced rates that New Brunswick citizens and industry will get from the deal do not justify its overall costs.
- The province is "disposing of assets worth significantly" more than the sale price and worsening its overall financial situation in the process.
- The deal will do little to reduce the use of fossil fuels in New Brunswick because HQ lacks the capacity and the incentive to produce the power it will supply New Brunswick by alternate means.
- One good aspect of the deal is the prospect of a "firm power purchase" agreement between the two provinces. This should be pursued in any case.
- The controversy over the sale illustrates the need for "a clear energy policy for New Brunswick" and the province should take steps to adopt one in "full consultation with all stakeholders."
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE
More information:
• Legal challenge brewing over sale of NB Power
• Vigil will protest the undemocratic sale of NB Power
• Website: nbpowernotforsale.org
• Amended $3.2-billion NB Power sale announced
• New Brunswickers protest sale of NB Power
• Public summit Dec. 9 to oppose NB Power sale
• New Brunswickers strongly oppose NB Power sale
• NBUPPE condemns controversial sale of NB Power