NB Power is facing new criticism over how it handled a major power project planned for Tantramar.
The auditor general’s latest report says the utility advanced the Renewable Integration and Grid Security project before completing key analysis and without following its own governance rules.
The project is expected to cost more than $2.8 billion over 25 years.
Auditor General Paul Martin said NB Power selected a single technology and signed a 25‑year tolling agreement with ProEnergy before finishing a full alternatives review.
He added that the analysis comparing different options was completed only after the agreement was signed.
Governance gaps and financial risks
Internal documents reviewed by the auditor general showed that an ownership model would have been $425 million to $700 million cheaper than the partnership structure that moved forward.
Martin told MLAs the utility did not follow its own Investment Governance Framework for a project of this size.
“NB Power has a documented process for its major projects. That was not followed in the determination and in the preparation of the required documentation for such a major project,” he said.
The report also found NB Power advanced the project before confirming whether approval from the Energy and Utilities Board (EUB) was required.
Martin told the committee that the utility was exposed to avoidable regulatory and financial risk.
If the EUB had rejected the project, NB Power would have owed $55.1 million in early costs to ProEnergy.
Martin told MLAs that ratepayers could face more than $55 million in costs if the project is delayed or denied, because the tolling agreement requires NB Power to cover early expenses and other contractual obligations.
The auditor general also found NB Power told its board that ProEnergy had secured an equity partnership with Indigenous communities, but no partnership had been established at the time of the review.
Martin said NB Power still has work left to finalize with ProEnergy and the Indigenous partnership.
During the hearing, Martin questioned the level of oversight within the project.
“I’m trying to understand how senior people that are in charge of this operation aren’t on top of this. Where is the data? Where’s the information? Where’s the plan?,” Martin said.
NB Power remains exposed to several risks under the agreement, including fuel costs, construction schedule delays, environmental compliance costs and termination risks, according to the report.
Martin also noted ProEnergy can withdraw from the project by mid‑2026 if conditions are not met.
He said the utility could still lose more than $55 million if the project does not move ahead and no power plant is built.
