NB Power Risked Millions in Penalties Taking Shortcuts on Power Plant, Auditor Says
The auditor said NB Power signed a 25-year deal and chose equipment before approval, exposing the utility to up to US$55.1 million in penalties.
- On Tuesday, New Brunswick auditor general Paul Martin released a report stating NB Power bypassed standard governance processes while developing the 500-Megawatt natural gas plant known as RIGS.
- The utility signed a 25-year contract with ProEnergy before receiving regulatory approval, a misstep Martin says exposed the Crown corporation to $55.1 million in potential penalties.
- Martin told lawmakers the utility "did not proceed in the clearest or most disciplined order," also noting NB Power selected dual-fuel turbines for the plant without studying alternatives.
- CEO Lori Clark responded that decisions were necessary due to peak power demand shortfalls, writing that "complex infrastructure decisions made under time pressure and heightened risk can reasonably give rise to differing perspectives."
- New Brunswick's public utility regulator approved the proposal last week, and the plant, which has a final price tag of $2.8 billion, is scheduled for operation by August 2028.
14 Articles
14 Articles
The Toronto Star
N.B. power company risked millions of dollars taking shortcuts on gas plant: auditor
FREDERICTON - New Brunswick's provincially owned energy corporation made a series of poor choices with its planned natural gas power plant that exposed taxpayers to millions of dollars worth of
Auditor general critical of N.B. Power’s ‘haphazard’ gas plant decision process
New Brunswick Auditor General Paul Martin's latest report is highly critical of the decision-making process that led to a $2.8 billion, 25-year agreement between N.B. Power and ProEnergy to build and operate a 500 megawatt gas and diesel power plant in rural Tantramar. Martin says analyses were done after the fact, and the agreement leaves the utility open to risks.
N.B. utility risked millions in penalties taking shortcuts on power plant: auditor
FREDERICTON — New Brunswick's Crown energy corporation made a series of poor choices with its planned natural gas power plant that exposed taxpayers to millions of dollars worth of risk, the public auditor general says.
Winnipeg Free Press
NB Power risked millions in penalties taking shortcuts on power plant, auditor says
FREDERICTON - New Brunswick’s auditor general is slamming the provincially owned energy corporation for taking shortcuts on a new power plant project that could have cost taxpayers millions of dollars.
Auditor General questions NB Power’s $3.55-billion gas plant deal
New Brunswick Auditor General Paul Martin issued a report today accusing NB Power of pushing ahead with its proposed gas/diesel generating plant near Centre Village without fully weighing the costs and risks to its customers or considering possible alternatives. The report also notes that NB Power’s agreement with PROENERGY requires the U.S. company to establish […]
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