New Brunswick's utility regulator has explained why NB Power customers are paying 4.29% more for electricity this year, not the 4.75% the utility asked for. The New Brunswick Energy and Utilities Board published its Reasons for Decision in Matter EL-003-2025 on August 26, 2026. The rates themselves took effect in April; the reasons set out how the Board reached them.
The timeline
The short answer: a late hearing pushed implementation two weeks past the start of NB Power's fiscal year.
| Step | Date |
|---|---|
| NB Power files application | October 1, 2025 |
| Public hearing | March 9 to 20, 2026 |
| Board decision | April 1, 2026 |
| Board order | April 13, 2026 |
| New rates implemented | April 14, 2026 |
| Written reasons published | August 26, 2026 |
NB Power's fiscal year starts April 1. The Board noted that the hearing was held later than usual, which made it likely that the new rates would miss that date.
What the Board approved
The short answer: 4.29% for every rate class, after a $7.0 million trim to NB Power's budget.
NB Power asked for a uniform 4.75% increase, citing aging infrastructure, higher electricity demand, climate change impacts and a government-mandated transition to net-zero. The Board found a uniform 4.29% increase, excluding the statutory rate rider, to be just and reasonable. It reduced the revenue requirement by about $7.0 million, to $2.7333 billion, by adjusting:
- the forecast for the ERP upgrade project, using NB Power's updated numbers;
- the vacancy credit used to forecast labour and benefits costs;
- depreciation, by excluding the Point Lepreau Nuclear Generating Station generator rewind project;
- the revenue forecast for the new Net-Zero Rate and AMI opt-out fee.
The Board accepted NB Power's choice to apply the increase uniformly, which it described as more affordable for residential customers. It added that it has no jurisdiction to create a rate relief program, and recommended the provincial government consider targeted relief for households in energy poverty.
The refused rate rider
The short answer: NB Power will not recover the April 1 to April 14 revenue gap from customers.
NB Power first asked for interim rates, and the Board refused on the grounds that the delay stemmed from factors within NB Power's control or that were reasonably foreseeable. The utility then asked for a rate rider to recover the shortfall by the end of the fiscal year. The Board denied that too, saying it would amount to retroactive ratemaking, and relied on a 2015 New Brunswick Court of Appeal decision involving Enbridge Gas New Brunswick.
Items heating contractors should note
The short answer: efficiency spending was approved in full, and NB Power's water heater rental prices went up.
- Demand-side management. The Board approved NB Power's $55.8 million test-year budget for demand-side management programs, part of a larger provincial and federal investment in demand-side resources. Growth over the prior year was driven partly by a commercial Peak Rebate program aimed at winter capacity shortfalls.
- Water heater rentals. Approved monthly rental prices for fiscal 2027 include $10.99 for 22-, 40- and 50-gallon tanks, $13.99 for 60 gallons and $26.99 for 100 gallons. The Board found NB Power's water heater rental prices to be the lowest in Canada.
- AMI opt-out. A monthly fee for customers who refuse a standard smart meter was approved.
Analysis: what this means for heating contractors
This section is HeatingNews.ca analysis, not part of the Board's decision.
New Brunswick is a mixed market: Statistics Canada's 2023 survey shows electricity as the primary heating energy for 39% of households, and heat pumps as the primary system for 27%. A 4.29% electricity increase therefore touches most of a New Brunswick heating contractor's customer base, whether they heat with baseboards, a heat pump or both.
Three things follow. First, rate increases make the running-cost case for replacing baseboards with heat pumps slightly stronger each year, but the case should be shown with real consumption numbers, not percentages alone. Second, NB Power's approved efficiency budget means utility programs remain a source of buyer interest; our New Brunswick page lists those we confirmed. Third, NB Power is itself a competitor in water heater rentals, so contractors selling owned tanks or heat pump water heaters should compare total cost honestly against rental prices the Board itself calls low.
If you want this kind of decision translated into a page your own customers can read, see our rate-change explainer pages.
What to watch next
NB Power files rate applications in October, under the Board's direction to file by the first Wednesday of the month. For the neighbouring province's decision, read our report on Nova Scotia Power's 2026 and 2027 rates, or go back to the newsroom.
Frequently asked questions
How much did NB Power rates go up in 2026?
The Energy and Utilities Board approved a 4.29% increase applied uniformly to all rate classes for the fiscal year ending March 31, 2027, excluding the statutory rate rider. NB Power had asked for 4.75%.
When did the new rates start?
The Board's reasons say the approved rates were implemented on April 14, 2026. The decision was made April 1 and the order issued April 13, 2026.
Why was the increase lower than requested?
The Board cut NB Power's revenue requirement by about $7.0 million, to $2.7333 billion. It adjusted forecasts for an ERP upgrade, labour vacancies, depreciation on a Point Lepreau generator project, and revenue from a new Net-Zero Rate and AMI opt-out fee.
Did the Board create a rate relief program for low-income customers?
No. The Board said it does not have jurisdiction to establish a rate relief program, and recommended that the provincial government consider targeted relief for New Brunswickers experiencing energy poverty.