Provincial Indigenous Affairs Minister Keith Chiasson speaking in the legislature on Tuesday

New Brunswick’s Indigenous Affairs Minister Keith Chiasson says the province needs the 500 MW gas/diesel plant on the Chignecto Isthmus to help in the transition to intermittent, greener sources of electricity.

“We do recognize the Auditor General’s report on the cost of the project,” Chiasson says, adding however, that “as every province is looking to generate new electricity, the cost of actually putting something in place, a project, is actually very, very expensive.”

He was responding in the legislature Tuesday to questions from Green leader David Coon who pointed out that the Auditor General had criticized NB Power for failing to analyze the risks and benefits of alternatives such as battery energy storage systems.

“Will the premier commission an independent study into the risks and benefits of the alternatives to this diesel gas plant?” Coon asked.

Premier Holt, who was in the legislature, deflected the question to Chiasson who said that Nova Scotia wants to buy 100 MW from the Tantramar gas plant while planning, along with PEI, to install additional gas turbines of its own.

Chiasson added that the Liberal government relies on the Energy & Utilities Board to oversee such projects and to make sure they are cost effective, an apparent reference to the EUB’s approval of the gas/diesel plant last week.

Green leader David Coon raising questions about Auditor-General’s report in the NB legislature

“NB Power and the member opposite are conveniently ignoring the battery revolution that is upending conventional wisdom and electric power planning worldwide, replacing fossil-gas peaking plants and lowering power rates,” Coon shot back before asking Chiasson and the premier to “pause” the relationship between NB Power and PROENERGY, its American partner.

“I keep coming back to the fact that the RIGS project,” Chiasson replied referring to the gas plant, “and the minister of energy says it over and over, if it wasn’t for the RIGS project, NB Power would not be able to actually develop wind power that, obviously, that the First Nations are in on. It’s going to be used as backup power, and it’s actually very beneficial to NB Power and to us moving forward.”

AG answers questions

The question period exchange came a couple of hours after Auditor General Paul Martin told the legislature’s public accounts committee that there were “gaping holes” in NB Power’s analysis of the gas plant project because of the utility’s failure to fully weigh its costs and risks to customers or consider possible alternatives.

“It may be the right decision,” Martin said, “[but] how would you know?”

He said he recognized that NB Power felt its need for new power generation was urgent, but the utility had almost three years to investigate solutions, plenty of time to evaluate alternatives properly.

Auditor General Paul Martin testifying before the legislature’s public accounts committee

Martin criticized NB Power’s board of directors for failing to ask the right questions to challenge management decisions, adding that it’s not a new issue.

“We issued a report on NB Power’s early retirement plan,” he said. “We saw in that case that management actually changed the retirement package after the board approved it and did not go back for any approvals,” he added.

“Here we we see a major project that isn’t following the appropriate guidelines and I believe as a board they’ve got to elevate their oversight and responsibility in those board seats to better understand what is required of them and the oversight they have to bring to the table,” Martin said.

He added that, if for any reason, the project falls through, NB Power would be required to compensate PROENERGY for early construction costs of up to $55.1 million in U.S. dollars.

“I’m trying to understand how senior people that are in charge of this operation aren’t on top of this and where is the data, where’s the information, where’s the plan?”

Indigenous partnership?

Tantramar MLA Megan Mitton questioning Auditor General

When Tantramar MLA Megan Mitton asked about the apparent lack of an Indigenous financial or equity partnership, Martin said he didn’t have any more knowledge about it than she did.

“We do know that PROENERGY can potentially leave, withdraw from the project by mid 2026,” he said, referring to an agreement that would allow the American company to bail out if it can’t find Indigenous partners.

“I’d say we’re darn close to mid-2026 so I’m expecting we should know by this summer what’s going to happen there. Are they finding a partner or is this a dead duck?” he asked.