Time for NB Power to Put Canada First:
The Tantramar Gas Plant Fiasco Demands Answers & Transparency
Submitted by: Derek Lackey
As NB Power faces a "comprehensive review," their American-first energy decisions look even worse. In fact, all of their decisions should be questioned.
While New Brunswick ratepayers grapple with soaring electricity bills and NB Power projects "significant future rate increases that are creating affordability challenges,"¹ the utility's leadership continues making decisions that prioritize American interests over Canadian ones. The July 14th award of a 25-year, 400 MW gas plant contract to Missouri-based ProEnergy, despite five Canadian firms submitting competitive bids, now looks even more troubling against the backdrop of an ongoing trade war.² My mentor, Robert H. Lane has always said “Follow the money - find the truth”. Our local reporters need to dig in here.
While New Brunswick ratepayers grapple with soaring electricity bills and NB Power projects "significant future rate increases that are creating affordability challenges,"¹ the utility's leadership continues making decisions that prioritize American interests over Canadian ones. The July 14th award of a 25-year, 400 MW gas plant contract to Missouri-based ProEnergy, despite five Canadian firms submitting competitive bids, now looks even more troubling against the backdrop of an ongoing trade war.² My mentor, Robert H. Lane has always said “Follow the money - find the truth”. Our local reporters need to dig in here.
Economic War Context Makes This Decision Inexcusable
Trump raised tariffs to 35% on Canadian goods not protected by USMCA just as we went to print, escalating a trade conflict that has seen Canada impose 25 per cent tariffs on $29.8 billion in products imported from the United States in March.³ With US$2.5 billion worth of goods and services crossing the border every day, this isn't just political posturing, it’s economic warfare that directly impacts every Canadian business and household.⁴
Yet at the very moment our federal government fights to protect Canadian industries from American trade aggression, NB Power handed a quarter-century energy contract to a U.S. company!! The optics couldn't be worse: while Ottawa battles to keep Canadian jobs and revenue in Canada, our provincial utility outsources critical infrastructure to the very country imposing punitive tariffs on our exports.
The Comprehensive Review Must Address This Contradiction
The government announced the plan for the comprehensive review of NB Power in April, citing concerns about rates, reliability, and the utility's crushing debt load. But this review must also examine whether NB Power's contracting practices align with Canadian interests, particularly during a period of escalating trade tensions.
The Tantramar plant decision raises fundamental questions about NB Power's procurement priorities:
Why were five Canadian firms deemed inferior to a Missouri-based company?
How does locking New Brunswick into 25 years of U.S.-sourced fracked gas serve provincial energy security during a trade war?
What economic impact analysis was conducted on the decision to send energy dollars south instead of keeping them in Canada?
Missing Canadian Content Requirements
Most well-managed provincial utilities have Canadian content requirements for major infrastructure projects. These policies recognize that taxpayer-owned utilities should prioritize domestic and local suppliers when possible, keeping jobs, revenue and profits within our borders while building local expertise.
NB Power's failure to choose Canadian bidders for the Tantramar project suggests either inadequate procurement policies or poor implementation. Either way, it represents a policy failure that the comprehensive review must address.
Local Green MLA Megan Mitton captured the absurdity perfectly: we're in an economic war with the U.S., yet our government signed a deal with an American firm. This isn't just about business, it’s about sovereignty and economic common sense.
Environmental Concerns Secondary to Economic Sovereignty
While the environmental implications of building on the sensitive Chignecto Isthmus remain serious, with ProEnergy's own estimates suggesting up to 900,000 tonnes/year of greenhouse gas emissions in worst-case scenarios, the immediate concern must be economic.
Canada cannot afford to subsidize American companies with taxpayer-owned utility contracts while simultaneously fighting a trade war. Every dollar sent to ProEnergy over the next 25 years is a dollar that could have supported Canadian workers, Canadian expertise, and Canadian energy independence.
Trump raised tariffs to 35% on Canadian goods not protected by USMCA just as we went to print, escalating a trade conflict that has seen Canada impose 25 per cent tariffs on $29.8 billion in products imported from the United States in March.³ With US$2.5 billion worth of goods and services crossing the border every day, this isn't just political posturing, it’s economic warfare that directly impacts every Canadian business and household.⁴
Yet at the very moment our federal government fights to protect Canadian industries from American trade aggression, NB Power handed a quarter-century energy contract to a U.S. company!! The optics couldn't be worse: while Ottawa battles to keep Canadian jobs and revenue in Canada, our provincial utility outsources critical infrastructure to the very country imposing punitive tariffs on our exports.
The Comprehensive Review Must Address This Contradiction
The government announced the plan for the comprehensive review of NB Power in April, citing concerns about rates, reliability, and the utility's crushing debt load. But this review must also examine whether NB Power's contracting practices align with Canadian interests, particularly during a period of escalating trade tensions.
The Tantramar plant decision raises fundamental questions about NB Power's procurement priorities:
Why were five Canadian firms deemed inferior to a Missouri-based company?
How does locking New Brunswick into 25 years of U.S.-sourced fracked gas serve provincial energy security during a trade war?
What economic impact analysis was conducted on the decision to send energy dollars south instead of keeping them in Canada?
Missing Canadian Content Requirements
Most well-managed provincial utilities have Canadian content requirements for major infrastructure projects. These policies recognize that taxpayer-owned utilities should prioritize domestic and local suppliers when possible, keeping jobs, revenue and profits within our borders while building local expertise.
NB Power's failure to choose Canadian bidders for the Tantramar project suggests either inadequate procurement policies or poor implementation. Either way, it represents a policy failure that the comprehensive review must address.
Local Green MLA Megan Mitton captured the absurdity perfectly: we're in an economic war with the U.S., yet our government signed a deal with an American firm. This isn't just about business, it’s about sovereignty and economic common sense.
Environmental Concerns Secondary to Economic Sovereignty
While the environmental implications of building on the sensitive Chignecto Isthmus remain serious, with ProEnergy's own estimates suggesting up to 900,000 tonnes/year of greenhouse gas emissions in worst-case scenarios, the immediate concern must be economic.
Canada cannot afford to subsidize American companies with taxpayer-owned utility contracts while simultaneously fighting a trade war. Every dollar sent to ProEnergy over the next 25 years is a dollar that could have supported Canadian workers, Canadian expertise, and Canadian energy independence.
What the Review Must Deliver
As the NB Power comprehensive review unfolds, New Brunswickers deserve clear answers about procurement priorities. The review panel must examine:
The Bottom Line
NB Power is burdened with a high debt to equity ratio exceeding 90% and projects major rate increases. At this critical juncture, every major contract decision should maximize value for New Brunswick ratepayers and Canadian economic interests.
The Tantramar gas plant contract fails this test spectacularly. While American tariffs punish Canadian businesses and workers, NB Power rewards American companies with guaranteed revenue streams funded by New Brunswick ratepayers.
Premier Holt and the review panel must ensure this never happens again. Canadian utilities should serve Canadian interests first, especially during economic conflicts with the very countries seeking our major infrastructure contracts.
New Brunswickers pay the bill. We deserve energy decisions that put Canada first.
The comprehensive review of NB Power continues through 2025. New Brunswickers can submit feedback at gnb.ca/nb-power-review.
To petition against outsourcing major Canadian infrastructure projects, visit chng.it/B5tyRwnJbc. Your voice matters and only you can exercise it.
As the NB Power comprehensive review unfolds, New Brunswickers deserve clear answers about procurement priorities. The review panel must examine:
- Procurement Policy Reform: Implementing robust Canadian content requirements for future major contracts. Even projects on the books should be reviewed and Canadian firms should be given priority. Only when the expertise does not exist in Canada, should a US firm even be considered.
- Contract Transparency: Full disclosure of why Canadian bidders were rejected and what criteria favoured the American proposal.
- Economic Impact Assessment: Analysis of the long-term cost of sending energy revenue to the U.S. during a trade war.
- Energy Security Strategy: How dependence on U.S. fracked gas affects provincial energy sovereignty.
The Bottom Line
NB Power is burdened with a high debt to equity ratio exceeding 90% and projects major rate increases. At this critical juncture, every major contract decision should maximize value for New Brunswick ratepayers and Canadian economic interests.
The Tantramar gas plant contract fails this test spectacularly. While American tariffs punish Canadian businesses and workers, NB Power rewards American companies with guaranteed revenue streams funded by New Brunswick ratepayers.
Premier Holt and the review panel must ensure this never happens again. Canadian utilities should serve Canadian interests first, especially during economic conflicts with the very countries seeking our major infrastructure contracts.
New Brunswickers pay the bill. We deserve energy decisions that put Canada first.
The comprehensive review of NB Power continues through 2025. New Brunswickers can submit feedback at gnb.ca/nb-power-review.
To petition against outsourcing major Canadian infrastructure projects, visit chng.it/B5tyRwnJbc. Your voice matters and only you can exercise it.
Sources include:
1. Government sources: The official NB Power review website for information about rate increases and debt ratios 2. Local media coverage: CHMA FM, The Regional, and Yahoo News Canada for specific details about the gas plant contract and environmental estimates
3. Direct quotes: Properly attributed quotes from MLA Megan Mitton and other officials from your original sources.
1. Government sources: The official NB Power review website for information about rate increases and debt ratios 2. Local media coverage: CHMA FM, The Regional, and Yahoo News Canada for specific details about the gas plant contract and environmental estimates
3. Direct quotes: Properly attributed quotes from MLA Megan Mitton and other officials from your original sources.
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