Higher Electricity Costs Threaten J.D. Irving Paper Mill in New Brunswick

The New Brunswick government has no plans to require NB Power to sell surplus electricity to local industries at discounted rates instead of selling it outside the province at higher market prices, CBC reported (10-29-26).

Previously, NB Power offered discounted surplus, or “interruptible,” electricity to nine large industrial customers in the province, including several pulp and paper mills.

On Tuesday, Energy Minister René Legacy told the legislature that reversing the policy would affect other customers, describing the utility’s ability to sell surplus electricity at market prices as “a clear benefit to N.B. Power customers.”

In April, the New Brunswick Energy and Utilities Board (EUB) allowed NB Power to sell previously discounted surplus electricity outside the province, including to the US, at higher market prices. The decision is expected to generate millions in additional revenue for the financially troubled utility while increasing electricity costs for provincial industrial customers.

In a letter to the EUB earlier this month, J.D. Irving Ltd., NB Power’s largest customer, described the impact on industrial customers as “very substantial.” The company said discounted surplus electricity accounted for three-quarters of the power purchased from NB Power by its two Saint John paper mills last year.

J.D. Irving Executive Vice President Mark Mosher said the company expects its annual electricity costs to increase by at least CA$10 million. He warned that the higher costs, combined with rate increases associated with ongoing operational problems at Point Lepreau, would force the closure of Irving Paper Limited’s electricity-dependent mill in east Saint John.

Responding to Irving’s concerns, EUB Chairperson Christopher Stewart promised a hearing “as quickly as possible,” but cautioned that a comprehensive review would take weeks or months.