J.D. Irving Warns NB Power Policy Change Could Force Irving Paper to Close
J.D. Irving Ltd. says a New Brunswick Power policy allowing surplus electricity sales to U.S. and out-of-province buyers at market prices could add $10 million annually in power costs for Irving Paper, potentially forcing its closure. The provincial government says it will not intervene in the company's regulatory application to reverse the decision.
A recent policy change by New Brunswick’s Crown-owned electric utility, NB Power, is drawing sharp criticism from J.D. Irving Ltd., which warns the move could force the closure of its subsidiary, Irving Paper.
Earlier this year, NB Power changed its policy to allow the sale of surplus electricity to customers in the United States and other out-of-province markets at market prices. According to J.D. Irving executive Mark Mosher, the change prioritizes selling cheaper surplus electricity to outside buyers first, leaving in-province industries to rely on more expensive excess power.
Mosher stated that the policy shift could drive up power costs for Irving Paper by an estimated $10 million annually, a financial burden he said could cause the facility to close.
New Brunswick Energy Minister Rene Legacy addressed the dispute, acknowledging that the government has the ability to reverse the decision but will not do so because the current policy benefits other NB Power customers. The Liberal government also confirmed it will not intervene in J.D. Irving Ltd.’s recent application to the Energy and Utilities Board seeking to reverse the request.
A regulatory review regarding J.D. Irving's application remains pending.