New Brunswick utility is proposing rate hikes over next three years

New Brunswick’s public utility is proposing to raise electricity rates by an average of 5.5 per cent for each of the next three years.

NB Power says the proposed hike works out to an increase of $13.25 a month for a home using 1,350 kilowatt hours.

The utility says the rate hike is needed to cover the costs of maintaining and modernizing its aging system.

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Utility executives say it is proposing three years of rates hikes in its submission — a first for NB Power — to allow households and businesses to plan ahead.

The new rates could come into force next April following a review by New Brunswick’s power regulator.

Last year, NB Power proposed a 4.75 per cent increase and the final number approved by the board was 4.29 per cent for the current fiscal year.

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NB Power indicated that its proposal could push local rates higher than some other provinces.

An independent review of NB Power by three experts earlier this year detailed how the utility is struggling to cope with challenges such as its aging infrastructure and a $6-billion debt.

Officials say the new plan slows the increase of its debt, but does not decrease it.