Auditor General’s Report Raises Concerns About NB Power’s Renewable Integration and Grid Security Project

Auditor General’s Report Raises Concerns About NB Power’s Renewable Integration and Grid Security Project

Fredericton (GNB) A recent report from Auditor General Paul Martin raises concerns about the decision-making, governance, and risk management processes NB Power followed in advancing its Renewable Integration and Grid Security (RIGS) project.

The report examines NB Power’s decision to proceed with a 25-year tolling agreement related to the RIGS project, which is intended to add approximately 400 megawatts of dispatchable generation capacity. The review found that key decisions were made before supporting analysis, governance processes, and regulatory requirements were fully addressed, increasing financial, governance, and regulatory risks for NB Power and its customers.

"Large, long-term commitments require a disciplined decision-making process supported by thorough analysis and clear governance," said Paul Martin, Auditor General of New Brunswick. "In this case, important choices were advanced while significant risks and alternatives had not yet been fully evaluated."

The report highlights that NB Power selected its preferred technology and partnership delivery model before completing a detailed analysis of alternatives and signed the tolling agreement before obtaining regulatory clarity from the Energy and Utilities Board. As a result, NB Power assumed long-term contractual obligations while key uncertainties remained unresolved.

"Our work does not question whether additional generation capacity was needed," said Martin. "The concern is that the sequence of decisions reduced assurance that risks to customers were fully identified, assessed, and managed at critical points in the project’s development."

The report concludes that while the project sought to address a system need, the approach taken increased NB Power’s exposure to cost, governance, and regulatory uncertainty.