FREDERICTON, New Brunswick — New Brunswick’s Crown-owned electric utility, NB Power, is facing criticism following a policy shift regarding the sale of its surplus electricity. This change has raised concerns among local industries, particularly forestry giant J.D. Irving Ltd., whose executive Mark Mosher has voiced strong objections.
Previously, NB Power offered surplus electricity to local businesses, including subsidiaries of J.D. Irving Ltd., at discounted rates. However, earlier in 2026, the provincial regulator permitted NB Power to sell this excess power to customers in the United States and other out-of-province markets at market prices. According to Mosher, this new regulatory framework could significantly increase operational costs for Irving Paper, estimating an impact of approximately $10 million annually. Such financial strain may jeopardize the company’s operations to the point of potential closure.
The core issue, as highlighted by Mosher, is that NB Power has prioritized selling its cheaper surplus electricity to external buyers over in-province industries. This shift compels local businesses to rely on more costly surplus power, thereby increasing their expenses and affecting their competitiveness in the market.
In a response to these changes, New Brunswick's Energy Minister, Rene Legacy, acknowledged the concerns raised by J.D. Irving Ltd. but confirmed the government's stance on not reversing the decision. Legacy indicated that the new policy benefits other NB Power customers and therefore justifies its continuation. He emphasized that the Liberal government does not intend to interfere with J.D. Irving Ltd.'s recent application to the regulator, which seeks to revert the policy.
Legacy stated, “We will see what the process is once the Energy and Utilities Board reviews what JDI has requested. We will not comment on the process until that is done.” This cautious approach underlines the government's commitment to maintaining the new pricing structure while balancing the interests of various stakeholders.
The implications of this policy change could be far-reaching, particularly in a province where local industries play a critical role in the economy. The potential for increased operational costs could lead to less competitive pricing, affecting not only J.D. Irving Ltd. but potentially other businesses reliant on NB Power's electricity. As the Energy and Utilities Board considers J.D. Irving’s application, stakeholders from various sectors will be closely monitoring the situation.
This development has sparked a broader conversation about the priorities in energy distribution and the balance between local industry support and potential revenue generation from external markets. The outcome of the review by the Energy and Utilities Board will be pivotal in determining whether the current policy remains in effect or if adjustments will be made to accommodate local businesses’ needs.
As this situation unfolds, the government’s decision will likely influence future energy policies in New Brunswick, shaping the relationship between provincial utilities and local consumers.
