Big industry seeks exit from N.B. Power grid as province weighs impact

Large industrial firms, led by J.D. Irving, are asking to leave the N.B. Power grid to generate their own electricity, and the provincial government is reviewing the proposal while N.B. Power warns it could raise rates for remaining customers.

Large industrial companies in New Brunswick are seeking to exit the N.B. Power grid so they can generate their own renewable electricity. J.D. Irving publicly asked MLAs for a change to the Electricity Act to allow power to be produced beyond a site’s boundaries, and Natural Resources Minister John Herron has expressed support. N.B. Power has said that if major customers leave the grid, remaining ratepayers could face upward pressure on rates. Government officials say an independent review of N.B. Power is underway and no decision has been made. Key points: - J.D. Irving asked a legislative committee to allow industrial generation to be supplied beyond a company site. - Minister John Herron backed removing legal barriers, citing competitiveness and concerns for forestry jobs. - N.B. Power warned losing large customers could increase costs for remaining customers unless mitigations such as exit fees are used. - An independent, comprehensive review of N.B. Power is in progress and the government has not adopted any policy change. Summary: The request by large industry seeks to enable self-generation and broader use of that power, which proponents say would lower internal costs for companies. The utility and some political figures have raised concerns about cost shifts and fairness; the outcome remains undetermined at this time as the independent review continues.