New Brunswick.

• Author: Sonier, Loredana Catalli
• Position: Legislative Reports

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The Fourth Session of the Fifty-Sixth Legislature adjourned Friday, April 16, 2010 following a 68-day session which focused largely on a proposed energy agreement with Hydro-Qu6bec. The proposed agreement dominated question period, Members' Statements and Opposition Members' Business. The House received 256 petitions, the majority of which related to the sale of NB Power.

Proposed Energy Agreement

A Memorandum of Understanding unveiled in October 2009 between the governments of Qu6bec and New Brunswick proposed low and more predictable electricity rates and would see HydroQu6bec acquire most of the assets of NB Power for an amount equivalent to NB Power's debt of $4.75 billion. Residential rates would be frozen for five years; industrial rates would be substantially lowered.

Changes announced in January 2010 would see the province retain ownership and control of transmission and distribution; NB Power would continue as a New Brunswick-owned and operated Crown corporation; New Brunswick would receive $3.2 billion for the sold assets, projected to be a sum sufficient to retire the debt related to the generation assets of NB Power; and businesses would continue to enjoy substantial rate benefits. Other benefits of the agreement, elimination of most of the financial risks associated with electricity production as well as the risks associated with servicing a large debt portfolio, remained substantially the same.

The government announced that, following the tabling of the legislation and the final agreements, there would be more than 30 days of debate in the legislature and a legislative committee would review the final agreements, hear from experts and listen to stakeholders in order to satisfy the requests to make the process as open and as transparent as possible.

The Official Opposition opposed the agreement, stating that the government had promised not to sell the utility and then entered into negotiations to do so without a mandate. The Leader of the Opposition, David Alward, suggested that the process announced by the government to review the final agreement would be ineffective because it would not engage the public in meaningful consultation and suggested alternatives would not be considered. The Opposition introduced motions calling upon the government to delay the implementation of the agreement until after a general election or referendum was held on the matter.

On March 24, 2010 Premier Shawn Graham announced...