Big funding for Mactaquac project should help keep electricity bills down and offer opportunities for nearby Indigenous communityAuthor of the article: John Chilibeck • Local Journalism Initiative reporterPublished Oct 13, 2026 • Last updated 1 day ago • 5 minute readThe Mactaquac hydroelectric station, opened in 1968, suffers from crumbling concrete and must be overhauled to reach its original 100-year lifespan. Photo by John Chilibeck/ Brunswick NewsOttawa is pumping $269 million into two big NB Power projects, a move that could help keep costs down for people who are upset about electricity bills that keep going up.THIS CONTENT IS RESERVED FOR SUBSCRIBERSSubscribe now to read the latest news in your city and across Canada.Unlimited online access to articles from across Canada with one account.Get exclusive access to the e-Edition, an electronic replica of the print edition that you can share, download and comment on.Enjoy insights and behind-the-scenes analysis from our award-winning journalists.Support local journalism and the next generation of journalists.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Unlimited online access to articles from across Canada with one account.Get exclusive access to the e-Edition, an electronic replica of the print edition that you can share, download and comment on.Enjoy insights and behind-the-scenes analysis from our award-winning journalists.Support local journalism and the next generation of journalists.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to keep reading.Access articles from across Canada with one account.Enjoy additional articles per month.Get email updates from your favourite journalists.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsArticle contentThe big funding announcement also has implications for the First Nation beside the Mactaquac dam, which blames the dam for devastating their community when it was built in the late 1960s without their consent.On Tuesday, the federal energy minister announced a $219-million loan from the Canada Infrastructure Bank to fund advance work on an overhaul of the Mactaquac hydroelectric station and a $50-million grant for a major upgrade to the high-voltage Salisbury Terminal substation.The preparatory work at Mactaquac, on the St. John River only a short drive west of Fredericton, is part of a 12-year plan to fix crumbling concrete and replace six turbines and other major components, a megaproject that’s estimated to cost up to $9 billion.The smaller upgrade to the substation is crucial for sending more electricity to the growing Moncton and Nova Scotia markets. Tim Hodgson, the federal energy minister, says the refurbishment of the Mactaquac Generating Station will drive economic and energy security in New Brunswick. Photo by John Chilibeck/ Brunswick News“These two projects will strengthen New Brunswick’s electricity system, while creating jobs, attracting investment, supporting affordability, and lowering emissions,” Tim Hodgson, the minister of energy and natural resources, told a small crowd that had gathered Tuesday morning in a parking lot overlooking the Mactaquac dam.By signing up you consent to receive the above newsletter from Postmedia Network Inc.Article contentArticle contentDuring her turn at the mic, NB Power CEO Lori Clark said that beside helping the generating station, opened in 1968, reach its original 100-year lifespan, the federal money will ease costs for New Brunswickers paying electricity bills. Over the last five years, the public utility has raised rates 30 per cent and plans on upping them another 17 per cent over the next three years, raising the ire of its 400,000 customers who are paying hundreds of dollars more for electricity.“This is such an important announcement for us because the funding will help provide another 50 years for Mactaquac,” Clark said. “But more importantly, it’s helping our customers. When we think about the $219 million that’s been dedicated toward the planning and engineering for this project, that will help reduce the upper pressure that we’re seeing on rates.”She said most customers hadn’t heard about the project in Salisbury, the town just west of Moncton, but described it as crucial for the growing southern New Brunswick market. Ratepayers will only have to cover $80 million of the total $130-million bill for the upgrade, thanks to Canadian taxpayers.Article content“It is a least-cost option for New Brunswickers, so that we can ensure that we continue to have safe, secure, reliable electricity for New Brunswickers, and that we can attract economic investment.” NB Power CEO Lori Clark says federal funding for the overhaul of the Mactaquac Generating Station will help keep costs down for electricity customers. Photo by John Chilibeck/ Brunswick NewsMactaquac is the only station in NB Power’s fleet that’s a blackstart generator, with the ability to restart the grid on its own if there were a provincewide blackout. The station supplies one-fifth of the province’s power and accounts for about 30 per cent of its renewable energy.But the announcement raised questions about what could be offered to First Nations in compensation for the dam, which the Wolastoqey people have blamed for blocking fish passage, particularly wild Atlantic salmon, once an important food source and a sacred creature to six Indigenous communities that hug the banks of the river and its tributaries.Kingsclear First Nation, or Bilijk in the native language, is right next door and has argued the dam should come down. Their young chief, Justice Gruben, was outraged when the federal fisheries department said in February it was going to shutter the nearby Mactaquac Biodiversity Facility, a hatchery tied to the creation of the dam that keeps their prized wild Atlantic salmon alive.Article contentThe latest funding, Hodgson said Tuesday, was earmarked for “technical studies, regulatory reviews, First Nations engagement and planning activities.”Brunswick News asked why money was being spent on “First Nations engagement” if the intent was to ignore their pleadings and go ahead with the station’s refurbishment.Hodgson, who is the MP for Markham–Thornhill in southern Ontario, replied that keeping a hydroelectric station going was about sharing prosperity.“I’m not going to speak specifically about this situation, because I’m not in the weeds, but I can tell you, when I was chair of Hydro One in Ontario, we started from a place where there wasn’t great dialogue with First Nations. And we got to a place where Ontario was building more transmission lines than any jurisdiction in North America.“Why? Because we were doing it in partnership with First Nations. We were doing it in a way where there was shared prosperity with First Nations. We were doing it in a way where First Nations felt like the projects were being done with them, not to them.”Article contentGruben, who watched the press conference from the back of the parking lot, told reporters afterwards he was willing to give the minister the benefit of the doubt. The chief said he and his council had been in close contact with NB Power, talking about what the station’s overhaul could mean for their community of about 700 residents.He said reconciliation between his people and the government of Canada meant more opportunities for education, training and employment, including on big projects, without elaborating further.“We understand the vitality of these projects in terms of nation building, and we want to work together and be a part of it,” the chief said. “It’s an exciting opportunity for us in moving in that direction, and I think the minister spoke to it very beautifully, acknowledging the history of this place, the implications that it’s had historically. But how do we move forward?” Justice Gruben, centre, the chief of Kingsclear First Nation, listened intently at the press conference from the back of the parking lot. Photo by John Chilibeck/ Brunswick NewsAnd it turns out his First Nation has also convinced the fisheries minister to keep part of the biodiversity facility going, at least for the time being.Article contentGruben revealed that a few months ago, Fisheries Minister Joanne Thompson changed course.“It’s a major reversal,” the chief said. “It’s no small feat to reverse a ministerial decision.”A spokesperson for the minister confirmed the news.Ira Khedkar wrote in an email to Brunswick News on Tuesday that the department would temporarily continue growing outer Bay of Fundy salmon from smolts at the Mactaquac Biodiversity Facility while discussions continue with the Wolastoqiyik and NB Power on the program’s future.“This decision was made following discussions with the Wolastoqey Nation, and feedback from conservation partners committed to protecting wild Atlantic salmon,” Khedkar said. “The Department will continue to wind down other operations at Mactaquac Biodiversity Facility, as part of the planned closure of the Live Gene Bank program for inner Bay of Fundy Atlantic salmon, and will remain engaged with the Wolastoqey Nation.”The work at Mactaquac is only the start of the big refurbishment that’s supposed to start in the spring of 2027.René Legacy, the province’s energy minister, told reporters the detailed engineering studies would give the project more cost certainty.The rough estimate right now is between $8.9 billion and $9 billion. Potential investors, he said, wanted to see detailed plans in front of them before agreeing to put their money into Mactaquac. By that token, he said, the advance work should help lure them in, defraying costs for ratepayers.Article content
Feds pump big money into planning of Mactaquac refit
