New Clear Free Solutions is one of many environmental groups in the province wanting a review of the model being proposed to transform NB Power to a renewable energy utility. The groups, including the Coalition for Responsible Energy Development in New Brunswick (CRED-NB), want the transformation to keep electricity rates low while also achieving equity targets.
On July 4, 2022, the NB Power board fired its CEO and engaged PricewaterhouseCoopers (PwC) Canada to perform a strategic review to transform the utility.
On July 26, 2022, I sent a letter to the NB Power board Chair Charles V. Firlotte requesting a meeting between myself, the founder of New Clear Solutions, and the team conducting the strategic review at PwC Canada.
With more than 25 years of experience in industrial systems engineering, I have been an intervener in three of the last four NB Power rate hearings. I developed an alternative Integrated Resource Plan for NB Power with the following elements: 1) Achieves a 95% renewable energy mix by 2040 or sooner; 2) Maintains low and stable rates; 3) Achieves NB Power equity targets in the near term, and pays down NB Power debt and makes NB Power very profitable in the longer term; 4) Creates significant economic activity and jobs.
For successive years, NB Power management teams have ignored alternative plans to make public investments in renewable energy. The firing of the CEO and engagement of PwC is an opportunity for transformative change to develop a public electricity utility that New Brunswickers need.
The model proposed by New Clear Free Solutions has been validated by NB Power, which included the model as an appendix in its 2017 Integrated Resource Plan but never implemented.
This is in spite of their own review of the modeling performed by NB Power System Planning Engineer Darren Clark who stated at a rate hearing: “We reviewed Mr. Rouse’s model and, functionally, I believe the majority of what he is setting out to do, the model is accomplishing.”
The letter to NB Power states that NB Power has two main ways to achieve the transformational economic and environmental goals the board is looking for. The first is large rate increases which would be “unpopular” considering inflationary pressures already on New Brunswickers. The second option, which this plan promotes, is an equity injection from our carbon tax revenue into NB Power, to invest in renewables and efficiency in lieu of rate increases. This is already possible under current legislation, and a great way to give the carbon tax back to New Brunswickers to help curb inflation.
The letter continues: ”Using the carbon tax revenue to make investments in renewables and efficiency not only enables NB Power to meet its equity target without significant rate increases, but also reduces fuel and purchased power cost that will give NB Power more free cash flow to reinvest. This reinvestment will compound like compound interest and will exponentially transition the electricity grid to 95% renewable, achieve equity targets and make NB Power very profitable.”
The Coalition for Responsible Energy Development speaks for more than 20 groups and 120 individuals in the province advocating for a nuclear-free renewable energy future. The Coalition has endorsed my meeting request. Representative Susan O’Donnell stated, “CRED-NB is interested to see a third-party review of how this plan for NB Power can support a sustainable energy future for all New Brunswickers.”
Chris Rouse is an industrial systems integrator with over 24 years of experience. He is the founder of New Clear Free Solutions, a solutions-based environmental group that provides objective scientific, financial, and regulatory information to the public and official decision makers.
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