NB Power’s financial struggles are laid bare as it remains saddled with a staggering $5 billion in debt, a figure that has been compounded by a worsening debt-to-equity ratio. Despite the Electricity Act requiring an 80/20 ratio, the utility has seen a decline from a more favorable 87/13 ratio to a concerning 94/6 in the past year. Martin’s report underscores the utility’s lack of profitability, noting a net loss of $43 million in the last fiscal year and a troubling trend of losses over six of the past seven years.

In a bid to address its financial woes in 2022, NB Power sought an 8.9% rate increase, only to be granted a 4.8% hike by the Energy and Utilities Board. In 2023, the utility filed for a judicial review, arguing the need for higher rates to tackle massive financial problems. In an unprecedented move, NB Power has proposed a steep 12.8% rate increase for residents for 2024, the highest in more than a generation. The utility also requested a 9.8% hike for the following year, dependent on its financial performance.

To quote the Auditor General, “We are concerned that NB Power will not be able to manage its debt without imposing significant rate increases, receiving funding from the Province, or reducing expenses.” Martin commented in his report that because of its debt worries NB Power may not be able to self-sustain its operations.

The Auditor General noted that the burden will fall on the taxpayer if NB Power cant pay its bills. Martin also told reporters that the only recourse is to become more profitable by cutting expenses or making more revenue and that NB Power doesn’t seem to have a plan. The report and comments foretell the coming rate hike for NB residents on their energy bills.