By: John Chilibeck, Local Journalism Initiative Reporter. Source: Telegraph-Journal March 30, 2026
The expert trio who looked at NB Power says the troubled public utility should not be sold to private interests, at least not in the short term.
Instead, they say performance bonuses should be put in place to encourage people who work at NB Power to do the best possible job.
These are just a handful of the 50 recommendations the comprehensive review panel put in its final report released on Monday, many of them sure to be controversial.
In a technical briefing for reporters and a news conference for the public, they warned that electricity rates would not go down any time soon, and there were no quick fixes to NB Power’s many problems, several of which have built up over decades.
“This didn’t happen overnight,” nuclear expert and former Bruce Power CEO Duncan Hawthorne said of NB Power’s troubles, which include rapidly rising rates, a ballooning $6-billion debt and poor performance at its generating stations, particularly the Point Lepreau nuclear power plant.
“Equally, it’s not reasonable to expect that waving a magic wand will make it better tomorrow.”
The Holt Liberal government commissioned the study last year just as rates were skyrocketing. The trio spent 10 months consulting with the public, NB Power executives, union officials and interested groups. They also did a review of important documents.
A big concern was the fast-rising prices.
Over the last three years, the utility has raised rates by 24% for its 430,000 residential and business customers, and it plans to keep boosting them for the next three years, much higher than the inflation rate.
Public uproar
In a poorer province where most people heat with electricity, the price hikes have cost households hundreds of extra dollars a year.
The rate shock has caused a public uproar and businesses to cry foul.
But the experts said there was no getting around the service’s cost, and that consumers would have to pay more over the short term.
They pointed to many factors: poor performance at NB Power, aging facilities that need to be fixed or replaced, increasing electrical demand, more stringent environmental requirements and past decisions of the provincial government and the regulator to freeze rates or keep them unrealistically low.
“The vacation on rates in the past is over,” said Anne Bertrand, the retired information and privacy commissioner who used to serve on NB Power’s board of directors.
“Rates are going to go up.”
Should the provincial government follow all their recommendations, Hawthorne noted, NB Power’s performance should improve over the long term, leading to more stable, predictable and affordable rate hikes.
No new nuclear for now
Although Ottawa and the province have invested substantially in the development of small modular reactors in New Brunswick, the experts say there shouldn’t be any new nuclear added until the existing Point Lepreau plant near Saint John is running better. In terms of public funding, just shy of $130 million has already been spent, according to researchers at the Cedar Project.
“NB Power shouldn’t be a first of its kind utility,” Hawthorne said, pointing out the problems with Point Lepreau’s refurbishment in 2012 that cost $1.3 billion, plus another $1 billion in replacement power.
It was the first Candu 6 reactor to undergo such an extensive overhaul, but little was done to the non-nuclear side of the plant, causing it to break down frequently.
Point Lepreau now has one of the worst performance records of any plant of its kind in the world. While most Candu reactors run at above 90% capacity, Point Lepreau has been far below that in recent years.
To right the ship, the trio says NB Power should run the nuclear plant separately from the rest of its stations and calls for the creation of an entity called Point Lepreau Nuclear, perhaps as its own Crown corporation, that would be set up to have its own governance arrangement specifically focused on nuclear performance.
They recommend NB Power then sign power purchase deals with Point Lepreau Nuclear, which would be responsible for paying off a large portion of the debt the parent company has accumulated.
Michael Bernstein, one of the trio and a utility expert and investor, believes such a structure would encourage the plant to perform better and offer a more commercially attractive rate for the electricity it generates, with excess power sold to Nova Scotia or Quebec.
The three experts see the eventual need for another big nuclear plant next to the Point Lepreau station.
“We have to remember the existing Point Lepreau plant has itself a shelf life which currently looks between 2040 and 2042,” Hawthorne told reporters.
“So there is a strong argument to say, even if we didn’t want more nuclear, I can’t imagine a world where you have less nuclear and so for that reason, we should be putting conscious and serious steps towards engaging on the possibility of a replacement plant, if not an additional plant,” he said.
Province should assume some debt
Bernstein, Bertrand and Hawthorne agreed with the Liberal government’s decision to do away with a requirement of the previous Progressive Conservative administration that NB Power quickly pay off a large chunk of debt – about $1 billion – by 2029, calling it an arbitrary date that would have raised rates extremely high over the near term.
Instead, they recommend that NB Power’s finances be restructured, and the utility corporatized. By this, they mean part of its debt could be swallowed by the provincial government – $1.5 billion worth, which is the amount legislated rate freezes in the past have cost NB Power.
NB Power would then have enough financial strength to pay down its debts and make enough money on the side to pay dividends to the sole shareholder, the provincial government, cash that in turn could be used to pay for social programs, such as ones that could help poor people who struggle to pay their electrical bills, the report states.
Variance accounts NB Power set up to recover cost overruns at Point Lepreau – in the order of $300 million that’s being paid back by customers over an eight-year period – should also be swallowed by the provincial government, the experts say, adding that once NB Power’s plants are running better, the provincial government could then consider selling some of them to private industry.
Performance bonuses
Many critics of NB Power have complained that its executives are overpaid because they are among the highest compensated public servants in the province. And there is a perception among some citizens, borne out by the experts’ surveys, that NB Power leaders have been getting bonuses.
They don’t.
Hawthorne said it was time to introduce performance bonuses for NB Power workers that would reward them for hitting goals.
“I can tell you from my own experience when I took over Bruce Power in Ontario, that was one of the first things we introduced,” he said.
“Not because we didn’t feel people weren’t paid enough, but because we wanted better performance.”
Hawthorne said people were sadly mistaken if they thought NB Power executives were paid well relative to other utility officials across Canada. NB Power’s senior leadership is among the lowest paid, he said, and one of the few in utility executive ranks that doesn’t get performance pay.
When Brunswick News asked the trio if they had confidence in NB Power’s senior leadership, given all the utility’s problems, Hawthorne didn’t hesitate to defend them, including CEO Lori Clark, who took over the top job in 2022.
“Lori is drinking from a firehose,” he said. “She is the one everyone calls to do this, that and the other.
“She needs to have the ability to control her own organization without continual diversions.”
To that end, the report recommended that NB Power become more independent from government and for politicians to stop meddling in its affairs. They want directives and mandate letters from the energy minister to stop – there have been seven in the last 10 years alone – and for a comprehensive modernization of the Electricity Act.
Rebuild trust

Energy Minister René Legacy. Photo: Stephen MacGillivray for the Legislative Assembly of New Brunswick
René Legacy, the energy minister, released a short statement Monday afternoon stating his Liberal government would create an action plan.
“This action plan will address the report’s 50 recommendations and deliver results for the future stability of NB Power and help rebuild trust in New Brunswick’s public utility,” Legacy said in a news release, adding that the government would release the next steps by the end of May.
“New Brunswickers can trust that we will act on these recommendations in a timely and transparent way. That work has already begun, and we look forward to sharing more.”
The NB Power CEO also released a short statement acknowledging that New Brunswickers were anxious about the utility’s future.
“As the report acknowledges, the challenges faced by NB Power have been decades in the making, and we need to be deliberate about planning for the future,” Clark said. “As a utility, we’re committed to making the changes needed while continuing to provide safe, reliable electricity, move toward cleaner energy, keep rates as low as possible, and strengthen our overall financial position.”
To read the comprehensive review report, click here.
Note: The report does not refer specifically to the proposed PROENERGY gas/diesel plant on the Chignecto Isthmus, but does say this on page 40: “We do however believe that partnerships and alliances, many of them being currently pursued by NB Power, are positive steps in achieving a number of objectives. Procurement from the private sector of new wind, solar, batteries, and gas plants is a good way to bring additional resources, expertise, and capital while transferring risk to the benefit of New Brunswickers.”
This story from Brunswick News was written by Local Journalism Initiative Reporter John Chilibeck with additional files from Bruce Wark.





























