Premier says potential Lepreau sale 'shouldn't be a public debate'

Premier Blaine Higgs is refusing to shed any light on the details of a possible sale of N.B. Power's Point Lepreau nuclear generating station to an Ontario Crown corporation.

Opposition parties demanded Thursday that Higgs give New Brunswickers a better idea of where a sale of Lepreau would fit in the province's long-term energy strategy and what the benefits and costs of a deal might be.

But Higgs deflected the questions and offered no additional information during a scrum with reporters afterward.

"Right now, it shouldn't be a public debate," he said.

"Right now, it should be companies talking to each other about potential scenarios … That's what the negotiation process is. It's not a public debate."

N.B. Power confirmed Wednesday that its discussions with Ontario Power Generation could lead to "some OPG ownership" of Point Lepreau.

"Is this going to cost us money or are we going to make money? … Are we buying OPG's expertise or are we selling the asset?" Opposition Liberal energy critic Keith Chiasson asked during Question Period at the legislature.

"There's a secret deal cooking behind the curtains, and you're not sharing that information with the people of New Brunswick."

Higgs told reporters the issue would be debated publicly "once there is a plan. But you can't have two companies negotiating a deal back and forth in the public domain. That's not how you're going to come up with the best result for all."

'Public assets'

Green leader David Coon said the premier's approach reminded him of the secrecy surrounding the 2009 agreement, later cancelled, to sell N.B. Power to Hydro-Quebec.

"It's not acceptable. It's a public utility. These are public assets," Coon said.

"And the public, the people of New Brunswick, need to hear from the premier what the plan is, not what the final result is after all the negotiations are done."

Higgs brushed off the comparison, saying then-Liberal premier Shawn Graham knew the details of the Hydro-Quebec deal before it was revealed publicly.

"We don't know what a partnership or relationship might look like, so that's why it's early days to say what it could be," Higgs said.

The premier suggested Wednesday that the utility, with its fleet of nuclear reactors in Ontario, has the expertise and experience to improve the performance of Lepreau.

The plant has been plagued by breakdowns and other problems since a $2.4-billion refurbishment ended in 2012.

The repeated breaks in service have cost N.B. Power millions. A shutdown last December wiped out all of the utility's projected profit for this year, adding to its $5.3 billion debt.

University of Moncton engineering professor Yves Gagnon, a vocal critic of the proposed 2009 sale to Hydro-Quebec, says selling Lepreau makes sense because the influx of cash would pay down part of that debt.

"We would significantly reduce the debt of N.B. Power [and] we could significantly reduce the financial risk for the population of New Brunswick, risk that would be absorbed by these large corporations that can absorb the financial risk on a global basis."

Gagnon said a company with a fleet of nuclear reactors wouldn't be financially affected as much by "swings" in Lepreau's performance as N.B. Power is.

"For them, the risk is much smaller than the risk for N.B. Power."

The province should be holding a competitive bidding process for the plant, he said.

The nuclear plant was valued at $1.4 billion when Hydro-Quebec planned to buy it. It is expected to operate until 2040.

Gagnon said an $881 million decommissioning fund — money set aside over the years to pay for the eventual shutdown of Lepreau — would be a "trump card" for N.B. Power in any sale negotiations.

The premier insisted to reporters Thursday that the rationale for a deal with Ontario Power is mainly about collaborating on the next generation of small modular nuclear reactors.

That's contradicted by an internal email by the utility's CEO Ken Hartwick, made public by Chiasson, which describes "a potential partnership at Point Lepreau" and makes no mention of SMRs.

"You can ask what you want," Higgs responded. "My answer's about the future."

On Wednesday morning, the premier refused to say whether Lepreau might be sold. It was N.B. Power that confirmed later in the day that a sale was an option.

Sale 'hypothetical,' said premier

Higgs defended that ambiguity Thursday. "I didn't deny or confirm because I do not know what's going to be the conclusion."

He also wouldn't say whether he and his cabinet would approve a sale if that's what the two utilities negotiate.

"I am not going to presuppose any hypothetical situation," he said.

Chiasson said the opposition Liberals are not necessarily opposed to a sale but they want the public to have more information.

"I think we're open to it. I'm not disagreeing with the premier saying that everything's on the table. I think it's a good thing that we're exploring what we do with that asset."