Saint John Energy wants deal to generate power for customers
Saint John Energy's CEO says he wants a new deal with the province that would allow the city-owned utility to generate its own energy, and rent solar panels and other products to customers.
Ray Robinson calls it a win-win solution that would help the province reach goals laid out in the Climate Change Action Plan, while bringing much needed revenue to Saint John Energy.
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"We're trying to redefine our business model," said Robinson. "There is a lot of legislation, predominantly the Electricity Act and the Local Governance Act, that is severely restrictive and constraining."
He foresees a demand for photovoltaic solar panel rentals to homeowners, but Saint John Energy cannot provide that service under terms of the existing legislation.
Robinson said the call for changes is driven by a revenue squeeze at the utility.
"Over the last four or five years, our energy sales have been flat," he said.
But any sustainable model is unlikely, at least in the short term, to include hydro power generation.
In late 2015 Saint John Energy hired Hatch, an engineering consulting firm, to study the potential for hydro generation from existing dams on the Musquash watershed.
Robinson said the results were not encouraging.
Hydro too costly
"The cost per megawatt hour, we'd have to charge for the output," he said. "I don't think it's going to be a competitive project at this point."
He suggested wind power, would be a more competitive option.
Robinson said the plan is to complement rather than compete with NB Power in the generating business, and Saint John Energy can do that by sticking strictly to renewables.
He said "active discussions" are already underway with provincial officials.
Saint John Energy buys all of its electricity in bulk from NB Power.
Cheaper within city limits
On average city residents pay 10 per cent less for power than people living outside the municipality's boundaries, who are served directly by NB Power.
Commercial customers pay four per cent less.
In 2014, NB Power released its Integrated Resource Plan, a document that opens the door to community-generated energy from renewable sources.
It would allow a total of 75 megawatts of renewable energy to be generated by locally owned sources province-wide by 2020.
A deadline for project submissions expires on June 30.
