The Provincial Government has announced that the new Electricity Act, debated and passed by the Legislative Assembly, will be proclaimed October 1, 2004. This six month delay in opening the electricity market to partial competition and corporate reorganization was due to factors that could affect NB Power's ability to successfully execute the planned changes.

For more information on the electricity act, click here.

The Provincial Government is addressing several public policy issues. Its goals are to ensure:

• a reduction of financial risk to taxpayers
• a continuous supply of electricity without rate shock as experienced in other jurisdictions
• a controlled and deliberate approach to the opening of the electricity market
• that NB Power operates as an efficient business in a more competitive environment
• the new operating companies are on a level playing field with energy providers in the private sector
• an enhanced role for the Public Utilities Board
  

No, if you are a residential, business or small industrial customer, it will change very little. It will affect mostly the largest power users by offering them the choice of suppliers. The vast majority of customers probably won't notice any difference. Homeowners, businesses and small industries will still purchase electricity from NB Power, receive a bill from NB Power, and see NB Power trucks on the road. Even the large customers can continue to take service at cost-based rates from NB Power if they chose.

Yes, there are major differences between New Brunswick and other jurisdictions. In New Brunswick, all customers will have access to standard electricity service at cost-based rates. No customer, big or small, will be forced into the market.

To ensure that adequate supplies of electricity will be available to all customers, a number of other safeguards are built into New Brunswick's new market structure:

• NB Power Distribution and Customer Service or other suppliers in the future must arrange to acquire adequate power and energy, including reserves, one year ahead of time.
• NB Power Distribution and Customer Service will have long-term contracts for the generation it requires to meet the needs of its provincial customers from the Heritage Pool (which are the existing NB Power generating resources).
• The new sector of the market that is competitive in New Brunswick (large industrial and wholesale customers - 42 in total) is a bilateral, negotiated contractual relationship, not a spot market. This means that prices will be set by negotiation between buyers and sellers for a minimum 12-month period. There will not be a bidding process with volatile hourly pricing like a commodity or stock market.
  

No. NB Power will still be a publicly owned Crown Corporation. The Electricity Act does, however, authorize the sale or lease of all or part of the Coleson Cove Generating Station. As well, it authorizes the lease or other similar contractual arrangements for the Point Lepreau Generating Station. Last year, the Provincial Government indicated that it was holding off on its search for an equity partner for Coleson Cove while the project is completed. For Point Lepreau, refurbishment discussions are underway with Atomic Energy of Canada Ltd. on managing project risks and potential investment.

Your rates as a homeowner, business and small industrial customer will still be subject to regulation by the New Brunswick Public Utilities Board. NB Power will continue to operate under "rate cap" legislation limiting any average annual increase to below 3% or the rate of inflation without public hearings.

Compared to electric utilities in this region, NB Power's costs and rates remain very competitive. The Coleson Cove and Point Lepreau refurbishment projects are key to stable rates and reliable power in the long term.

Employees will be transferred to one of the new operating companies or remain in the holding company as part of the newly formed shared services organization. The shared services organization provides a source of common services to be shared by the new operating companies. This will preserve existing internal efficiencies. All collective agreements will remain in place.

Safety and concern for the environment are integral to NB Power's way of operating regardless of ownership or market issues. As well as our established internal processes on safety and environmental protection, we will continue to be subject to external regulation ensuring electricity is provided in a safe and reliable manner consistent with environmental regulations.

NB Power has been a national award winner for employee safety. It has significantly reduced public contacts with facilities and wires through public safety programs. Environmental protection programs are well established. These positive programs will continue in the new operating companies.

Absolutely. We know the important part electricity plays in your lives. You need to know that at the flick of a switch, you will get the light and heat you need. Under the new structure, you can continue to rely on NB Power for the service you trust.