The Government website claims:

This proposed agreement would eliminate NB Power's debt entirely. This $4.75 billion debt - $6,500 for every man, woman and child in the province - would be gone. More importantly, the risk of billions of dollars of new debt from future refurbishment projects and rising fuel costs - projected to be more than $10 billion - would be eliminated.

Here is what you are not being told

• Read a report by the Atlantic Institute for Market Studies about this MOU, here are some quotes:

...1. New Brunswick is to be paid a sum of money to reduce its debt and will receive a five year rate regime designed to provide significant relief to NB Power customers. After the five years, at least a portion of the rates will be potentially subject to a regime promising additional relief. The scope of savings after the initial period is speculative.

...2. New Brunswick will also be relieved of the risks inherent in some future costs related to NB Power. However, it will not be relieved of all cost and contingencies. Its residual costs will have to be recovered from New Brunswick taxpayers or NB Power customers.

...The principal part of the consideration provided by HQ is the payment of $4.75 billion, the "Cash Price", which is supposed to equal the total of all debt owed by New Brunswick relative to NB Power.

...The MOU does not require that these funds should be used to retire that debt, although that is the apparent purpose of the payment.

• New Brunswick’s Auditor General, Mike Ferguson Nov. stated “Actually there will be no impact on the provinces net debt because the province has always been deducting NB Power’s debt anyway” and saying “that’s not something the taxpayers have to pay.” In addition, “NB Power has often provided a substantial source of income for the province.” Ferguson said.

 

• Liberal Finance Minister Greg Byrne in an address to the Fredericton Chamber of Commerce on Nov. 16 stated “the deal won’t cut the amount the province pays to service the provincial debt!”

 

• The sale of NB Power will not help the provinces credit rating. Three reputable credit rating agencies – Moody’s Investors Service, Standard & Poor’s and DBRS – have all indicated that the deal will have "no impact” on our burden of debt.

 

• NB Power has always and will continue to be profitable. It will continue to pay down its debt!

 

• NB Power has in addition to servicing its own debt has contributed over $540 million between 2005 and 2009 to help pay down the governments “provincial” debt of more than 7.4 billion!

• The NB provincial debt of 7.4 billion, which does not include self paying NB Power Debt, grew $438.6 million in fiscal 2008 – 2009 or over three times projected in the Liberal budget!

• We must make interest payments of $600 million per year to service “provincial debt” (where did the money go .. more)

• According to the terms of the MOU 7.1 Hydro Quebec will pay no income or capital taxes to the province of New Brunswick!

• Since NB Power will no longer be able to assist the government in paying down the provincial debt this shortfall will have to be made up by the residents of New Brunswick through higher taxes!

• NB Electric Finance Corp. the financial division of NB Power paid down its funded debt by $415.4 million in 2008. In addition in 2008 NBFC paid interest to the province of NB of $234.3 million.

• The Liberal government contends the NB Power debt is being erased by the deal. Auditor General, Mike Ferguson states, “The debt is just being assumed by Hydro Quebec” he goes on to say, “ Hydro Quebec, which has to borrow money for the sale will in turn recoup it from the same ratepayers who were paying for NB Power. There’s still $4.75 billion that needs to be repaid.”

• NB Power supplies electricity to approx. 370,000 direct and indirect customers within New Brunswick!
   
• NB Power exports electricity to Quebec, Prince Edward Island, Nova Scotia and New England states.
   
• NB Power produces electricity through 16 hydro, thermal and nuclear power generation plants!
   
• NB Power transmits this electricity through a network of over 20,030 km of transmission lines and sub stations!
   
• The generating plants, the buildings, the transmission lines and the thousands of square kilometers of land they sit on are all crown assets held in trust and owned by the people of New Brunswick!
   
• NB Power’s 2009 financial statement declares the value of all buildings, land and distribution system at $7.3 billion. Replacement cost of these assets at today’s cost would easily be 2 to 3 times this amount!
   
• NB Power had net earnings of $70 million or a 4.8% return on its 2009 sales of 1.453 billion. Not bad at all!
   
• $70 million in profits after servicing its debt, paying over $58 million in taxes and making special payments of $34 million to the Province of NB.
   
• The Lepreau Nuclear plant when completed and operating properly will also be handed over to Hydro Quebec.
   
• The Lepreau Nuclear facility is expected to operate for 25-years and generate over 6 billion in profits at today’s rates!