The topic of rate design is an ongoing dialogue with NB Power, the New Brunswick Energy and Utilities Board (NBEUB) and various interested parties. Modernizing rate design is a gradual and managed process and is expected to occur over several years. Rate classification changes are about equity within and between customer classes. Customers could eventually be classified differently and billed using different rate designs than are used today, leading to lower bills for some and higher bills for others. When planning changes to rate structures, NB Power includes measures to make the changes gradual to reduce the impact on affected customers.

Following direction from the NBEUB, we are reviewing and updating how electricity rates are set in New Brunswick so they better reflect the cost of providing service to different customer groups.

This includes:

• a proposal to place farms, places of worship, charitable organizations, and lodging premises that use higher amounts of electricity on business rates, while smaller users within these groups would remain on residential rates
• a proposal for size-based classification of commercial and industrial customers
• a proposal for the modernization of the Net Metering program
• a proposal to eliminate the large industrial declining discount for new customers
• the reasonableness of NB Power’s cost of service methodology

NB Power filed a Rate Design Application on April 30, 2026. It is referenced as Matter El-002-2026 and can be viewed on the NBEUB’s website by searching Matter EL-002-2026 and clicking on the Matter name to view the details.

The Rate Design Application covers a number of proposals for consideration by the NBEUB, including those above, and will not result in any immediate changes in electricity rates. If approved, changes would be introduced gradually over several years, beginning April 1, 2027, to reduce sudden bill impacts.

As with most matters heard by the NBEUB, NB Power’s Rate Design Application will be carried out through public proceedings. Customers, members of the public and representatives of groups are encouraged to participate in the process. Participation helps to ensure that the NBEUB is informed of the issues that are important to customers and that decisions are made in the public interest. Participation can be through formal intervener status in the proceeding, a written submission, or an oral presentation at a public forum – all subject to deadlines determined by the NBEUB.

NB Power welcomes comments and questions from customers. Please contact us via email at NBPowerRateDesign@nbpower.com or by calling 1 800 663 6272.

Resources

New Brunswick Energy & Utilities Board - Rules of Procedure (nbeub.ca)

Participation in Proceedings (nbeub.ca)

The Hearing Process (nbeub.ca)

Getting involved - Infographic

Net- Metering Modernization - Virtual Information Session

Net- Metering Modernization 2026 Rate Design Application

Value of Solar

1. What is the value of solar?
2. What are the expectations in terms of timeline for that 'value of solar' to be clarified.
3. Will the solar rate change over time?

The value of solar and how it will change over time is the outcome of a study completed as per Board direction in Matter 529. The study has been filed as NBP 1.15, Appendix L in the RATE DESIGN APPLICATION PHASE 2 package.

Cross-subsidization

4. What is the status of the quantitative cost-shifting analysis of net metering, and analysis based on a value-of-solar approach, that the NBEUB directed NBP to undertake? This is in reference to Matter 529 – NB Power Rate Design Item 211
5. Please elaborate on the term "cross subsidization"?
6. How is a self generation solar system causing negative financial consequences for other non subscribed rate payers?

The cross-subsidization or cost-shift occurs when the cost to serve a group of customers is not fully recovered by those customers but is borne by other customers. For evidence related to cross subsidization see section 5.2 of Exhibit NBP1.01, the main evidence document in the RATE DESIGN APPLICATION PHASE 2 package. Also, for analysis on cross-subsidization, see NBP1.16, Appendix M.

Participation

7. Can NB Power provide a process for further consultations with the solar industry?
8. Is it NBP's intent that all stakeholder engagement - and collaboration on design and implementation - on these proposals will take place inside the regulatory process?

NB Power encourages interested parties to participate in the regulatory process as part of RATE DESIGN APPLICATION PHASE 2. There are 3 ways to participate:

• Intervener status
  • requires written request to the NBEUB prior to its deadline
  • interveners participate in the NBEUB’s formal “court-like” process
• Submission of written comments to the NBEUB by letter
• Oral submission to the NBEUB at one of its public forums (pre-registration by contacting the NBEUB is required)

Demand and Time of Use (TOU)

9. How will TOU affect customers on net metering?
10. Will the solar rate consider hybrid solar and batteries?
11. Demand response - will there be a program that you can speak on that might couple with this proposed net metering change?

The proposed rate structure includes a time of use component for the demand charge, for details on the proposed rate structure see section 5.5 of Exhibit NBP1.01 as well as NBP1.19, Appendix P of the RATE DESIGN APPLICATION PHASE 2 package. There is no evidence related to demand response programs or battery programs submitted as part of the package.

Incentives

12. With the deadline of the current rebate program culminating this month, any talk surrounding anything additional?

There is no evidence for future rebate programs submitted with RATE DESIGN APPLICATION PHASE 2 as part of the package.

Grandfathering

13. What happens if a house sells to a new owner?

The sale of a house includes the closure of the customer’s account and termination of that customer’s net metering agreement. The new owner/account holder/program participant would not be eligible for grandfathering.

14. Could an existing customer choose to switch to this new system? Or will all existing systems not be updated until 2037?

An enrolled participant can elect not to be grandfathered and opt to enroll in the new program. See section 5.7.3 of Exhibit NBP1.01 of the RATE DESIGN APPLICATION PHASE 2 package.

15. When you are grandfathering in current customers and they produce excess solar what rate will they be compensated at or will their excess credits be cancelled in April like they are now.

The Billing terms and conditions of the net metering agreement between the grandfathered participant and NB Power do not change. Credits will be exchanged at retail rate, and the annual reconciliation of excess credits will still occur.

16. Will grandfathering be for the life of the project or for a determined time?

The proposed grandfathering period is 10 years starting April 1, 2027, ending March 31, 2037. See section 5.6 of Exhibit NBP1.01 of the RATE DESIGN APPLICATION PHASE 2 package.

Solar projections

17. There is some anxiety amongst solar installers that changes (e.g., removal of solar funding, reduction in NM export credit) will have compounding and chilling effects on their business. Has NBP considered the impact of the changes being proposed on the rate of deployment?

The studies of cross-subsidization, rate structures and value of solar filed in the RATE DESIGN APPLICATION PHASE 2 package use solar projections that do not speculate on program uptake.