NB Power will make its case for a significant rate hike starting this week.
A hearing before the New Brunswick Energy and Utilities Board (NBEUB) begins Monday.
The electric utility has applied to raise residential rates by 9.8 per cent this year and again next year.
Officials have said the money is needed to upgrade aging infrastructure and focus on long-term energy security.
The NBEUB already approved this year’s rate increase on an interim basis pending the outcome of the formal hearing.
Lori Clark, president and CEO of NB Power said they needed the increase to take effect April 1 to avoid revenue shortfall, which she said could put further pressure on the utility’s debt situation.
NB Power had to delay its initial rate application in October after the province extended its 80/20 debt-equity target from 2027 to 2029.
Because of the extension, utility officials had to go back and crunch the numbers in its rate application, leading to a weeks-long delay in the hearing.
The Crown corporation has said that if the board later decides to approve a smaller or larger rate increase, customers’ bills will be adjusted to reflect the difference.
The hearing is scheduled to take place in Fredericton over 16 days between now and Aug. 23.
