Regulator rejects N.B. Power’s effort to skip review of Tantramar gas plant

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Regulator rejects N.B. Power’s effort to skip review of Tantramar gas plant

New BrunswickThe province’s Energy and Utilities Board rejected N.B. Power’s argument that the proposed Tantramar project falls outside of the regulator’s purview. Decision means the Energy and Utilities Board will study project risks, hear arguments from stakeholdersSavannah Awde · CBC News · Posted: Oct 16, 2025 4:37 PM EDT | Last Updated: 2 hours agoChair Christopher Stewart said the Energy and Utilities Board disagrees with N.B. Power’s argument that the project falls outside the board’s scope. (Ian Bonnell / CBC)N.B. Power’s push to bypass the Energy and Utilities Board review process for a proposed gas plant outside Sackville was rejected by its regulator on Thursday.In July, the utility entered into an agreement to pay a private company to design, construct, operate and maintain a natural gas plant over a 25-year period.Because of that, the Crown corporation argued in a motion to the EUB, the project shouldn’t be considered a capital project belonging to N.B. Power.Under the province’s Electricity Act, the board only has the authority to review capital projects of the Crown corporation.But the EUB disagrees with the utility’s interpretation, board chair Christopher Stewart said an oral decision delivered by videoconference.N.B. Power will have to undergo a full regulatory review before proceeding with its proposed Tantramar project. (CBC News)Instead, the board found the project exposes N.B. Power to exactly the kind of financial risk that the Electricity Act is meant to address — and does warrant a review.”This arrangement does not eliminate the risk to N.B. Power that the project may later be found to be imprudent,” Stewart said.”It only captures certain sources of risk and transforms them into a cost, for which N.B. Power will ultimately seek recovery from ratepayers.”He noted that reviews give the board an opportunity to assess the financial prudence of a capital project. It also gives interested parties the opportunity to submit arguments for or against the project.Moe Qureshi, an intervener with the Conservation Council of New Brunswick, welcomed the EUB decision.Moe Qureshi, the director of climate research for the Conservation Council of New Brunswick, said the organization is happy the project will be reviewed. (New Brunswick Legislature Livestream)”This is a win for accountability, ratepayers and climate responsibility,” Qureshi said after the decision was read. “We’re happy this project will be reviewed.”Hearing dates for the review have yet to be set, but N.B. Power counsel John G. Furey told the chair the utility would submit its application by the end of Monday.Furey questioned whether the typical 20-day waiting period between filing an application and holding a pre-hearing conference would be necessary.But Stewart said the board wants to give interested parties enough time to “fairly determine” if they want to intervene in the application.N.B. Power has said the plant is necessary because of a potential energy shortfall as early as 2027, but the idea has proven to be controversial.On Wednesday night, Tantramar council unanimously passed a motion to formally ask provincial and federal government leaders and the project proponent, Missouri-based ProEnergy Canada, for more engagement and a full environmental impact assessment. But the council also narrowly voted against taking an official stance to oppose the project, in an earlier meeting.Megan Mitton, the Green Party MLA for the area, has been vocally opposed to the project and believes there should be greater transparency about the cost.This summer an open house held by ProEnergy drew about 170 community members, who raised concerns about potential environmental and health impacts.According to a 2025 environmental assessment, it’s possible that “liquid effluents” will be discharged into the nearby wetland, and effects on the quality and quantity of groundwater and surface water are expected. ABOUT THE AUTHORSavannah Awde is a reporter with CBC New Brunswick. You can contact her with story ideas at savannah.awde@cbc.ca.With files from Bob Jones

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