What is “non-emitting” or “clean” energy?

Non-emitting or clean energy refers to electricity generated from sources that do not produce greenhouse gas emissions during operation. This includes traditional nuclear, small modular reactors, units with carbon capture, and any renewable (hydroelectric, wind, solar) or green (biomass, biogas) energy. NB Power’s grid is currently 75% non-emitting because of the 40% regulatory requirement of the Renewable Portfolio Standard (RPS), plus 35% nuclear.

Note: The RPS objectives are set by the Government of New Brunswick Regulation (2015-60) that defines “electricity from renewable resources”. These sources include solar, wind, hydroelectric, ocean-powered, biogas, biomass, and sanitary landfill gas.

What is “Net Zero”?

Net Zero is defined as achieving net zero carbon emissions annually either from energy sources that emit no greenhouse gases (e.g., renewable, or green), or the emissions are offset by other actions to remove an equivalent amount of carbon dioxide from the atmosphere. 

What is the Net Zero Rate Program?

The Net Zero Rate Program is an optional program that enables customers to indicate their preference to be supplied with up to 100% non-emitting energy, by adding a premium over standard rates to their bill. It is designed to meet increasing customer demand for clean energy while insulating the general rate base from any upward cost pressures associated with procuring additional non-emitting energy.

How does the Net Zero Rate Program work?

The Net Zero Rate Program offers an electricity rate that is a pay per-kilowatt hour (kWh) premium charged through an additional line item on the customer’s monthly electric utility bill. 

Who are the target customers?

The Net Zero Rate Program is available to all customers on a first come, first served basis, subject to availability. It’s designed for:

• Government and public sector entities with climate goals
• Businesses with Environmental, Social, and Governance (ESG) commitments
• Environmentally conscious customers
• Developers and property managers of green or LEED certified buildings

Subject to availability, NB Power will allow customers to indicate their preference for the % of their choosing.

How is the rate calculated in the Net Zero Rate Program?

The charge for the Net Zero Rate will be calculated as:

(total electrical energy consumption for the billing period in Kilowatt-hour
x (participation level % indicating preferred amount of non-emitting energy to achieve the customer’s goals)
x (Net Zero Rate)

How much more a month will customers be paying?

For the financial year 2026-2027, rate is 8.32 cents/ Kilowatt-hour for distribution customers and 7.99 cents/ Kilowatt-hour for transmission customers, subject to change. The rate will evolve over time as more renewable energy is added. For example, customers indicating a preference of a 25% participation level (i.e. a preference for 100% non-emitting energy) can expect about a roughly 15% premium on their bill. A minimum charge of $8.32 per billing period will be applied to accounts using less than 100kWh to cover administrative costs, subject to change.

What kind of audit reporting will be provided and at what frequency?

NB Power will follow similar auditing and reporting processes that are required for the Renewable Portfolio Standard. The RPS requirement includes a report to the Minister within three months of the end of the fiscal year and a declaration by the President and Chief Executive Office.

Can NB Power guarantee that the portion of energy a customer selects as their participation level under the Net Zero Rate Program is sourced from non-emitting/clean resources?

Given that non-emitting/clean electricity is subject to availability and cannot be dispatched on demand, NB Power cannot guarantee that the physical delivery of electricity will be sourced from non-emitting/clean resources. While customers participating in the Net Zero Program can indicate their preference to receive a specified portion of their energy from non-emitting/clean resources, participation in the Net Zero Program does not alter the physical delivery of electricity and does not guarantee that electricity supplied to the customer is generated from any specific generating source.

Will the Net Zero program support New Brunswick non-emitting energy sources? 

The Net Zero Program will support the supply of non-emitting energy procured through the long-term power purchase agreement (PPA) from NB Power’s 2023 Request for Expressions of Interest (REOI) for the supply of renewable electricity using renewable generation technologies and energy storage solutions. The Net Zero Rate Program will also support NB Power’s pursuit of new, in-province, wind generation.

Why would a customer be interested in the Net Zero Rate Program instead of installing their own renewable generation?

The optional rate provides customers with an opportunity to support the generation and sourcing of clean/non-emitting energy by NB Power as an alternative to installing their own clean generation (e.g., solar), especially those who lack the capital or a suitable site.

NB Power intends to have a net zero electricity grid by 2035. Why would a customer want to sign up for a premium when the grid is intended to be non-emitting in 10 years?

Currently, NB Power customers have limited options to support the generation and sourcing of clean/non-emitting energy (e.g., self-generation or subscribing to programs like Bullfrog Power). The Net Zero Rate Program supports early adopters and those that support NB Power’s objective to be Net Zero before 2035.  

What will happen to the Net Zero Rate Program when the electricity grid is 100% non-emitting?

When implemented, the Net Zero Rate Program will be part of NB Power’s Rate Schedules and Policies (RSP) Manual. As the grid becomes cleaner, customers will require less additional energy to achieve net-zero. When NB Power’s grid becomes carbon neutral (or 100% non emitting), the Net Zero Rate will dissolve as its intended purpose to support the provision of cleaner energy options will be achieved. The renewable energy will then become part of NB Power’s standard supply mix.