NB Power no longer has to meet its goal of 80 per cent debt to 20 per cent equity by 2029.
The province has removed the target date to try and help stabilize power rate increases.
“The requirement to meet the 2029 equity target was the single biggest factor driving potential double-digit rate increases over the next few years,” Finance Minister René Legacy said in a news release on Wednesday.
Legacy said that while the move will not prevent rate increases from happening, it will lower rate increases by allowing the utility to lower required net earnings.
The minister added that very little progress have been made by the utility despite the equity target existing for more than a decade.
“We recognize that, rather than setting unattainable targets, we need to see the utility taking meaningful and measurable action – which has been outlined in NB Power’s 2025 mandate letter,” added Legacy.
NB Power has been given until Oct. 1 to develop a three-year plan on how it will make progress on the 20 per cent equity target.
The province is currently undertaking a comprehensive review of NB Power, with final recommendations and any decisions expected by the end of March.
