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| Rate hike could cripple forest industry: advocate |
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2006/2/10
Industrial power users are outraged that NB Power has requested a 12.9 per cent rate hike for mills and factories across the province.
Electricity accounts for approximately one quarter of the cost of running big industrial plants like pulp mills. If power rates go up by nearly 13 per cent, the forestry and manufacturing industries say heavy job losses will follow and some plants might shut down.
Mark Arsenault, president of the New Brunswick Forest Products Association, said mills already have a tough time keeping the lights on.
"You know, everyone was bracing for an increase, but to come in with a 12.9 per cent increase in one blow, it's enough to bring industry to its knees," he said. "If they proceed with an increase of this magnitude it's going to have a dramatic, drastic and crippling effect on our industry."
NB Power also wants to raise residential rates by 13 per cent. Both hikes are designed to help make up for a predicted $126 million shortfall next year. The request still needs the approval of the Public Utilities Board, which will be holding hearings next month. |
| Source:http://www.cbc.ca/ |
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