By Peter Josselyn

The proposed sale of NB Power to Hydro Quebec has ignited a robust debate about New Brunswick's ability to be independent and prosperous and the province's cooperation with other Atlantic provinces. New Brunswick Premier Shawn Graham and Quebec Premier Jean Charest signed a memorandum of understanding that would see NB's beleaguered utility bought for $4.45 billion plus rate changes for power users.

Though the deal has not had much play in the national news -- there are even rumours that the Globe and Mail sat on the story for six weeks -- it is the single largest news story in New Brunswick. Each day, there are new stories about how stakeholders stand to lose or gain. The debate is also taking place on Twitter (#nbpower4sale) and Facebook. Someone has even penned a protest song, available on YouTube which humorously chides the deal.

The debate is so passionate because New Brunswick has pinned its hopes on positioning itself as an energy and high-tech hub that would export substantially to the north-eastern United States. Hopes were dashed with the July, 2009, decision by Fort Reliance (the parent company of Irving Oil) not to build a second refinery in Saint John at this time.

Many New Brunswickers see the province’s utility lines into the United States as an asset that either should not be sold or that has been substantially undervalued in the memorandum of understanding. Critics also point out that the deal cherry-picks assets and leaves the province on the hook for the Point Lepreau nuclear generating station refurbishment and the decommissioning of various plants.

Proponents argue that the deal has the ability to clear forty-per-cent of the province’s debt and that it will guarantee current residential power rates for five years. The biggest savings are for heavy industrial users whose rates would fall thirty-per-cent. J.D. Irving revealed the company would save $17 million a year, or roughly 4,900 jobs.

In a recent town hall session in Saint John, Premier Graham said this was the best deal with New Brunswickers since it offers stability to current ratepayers and it eliminates the competitive advantage that Quebec has with lower power rates for industry.

The Premier also showed reticence about how the deal will impact the other Atlantic provinces. Although he said he would welcome working with Newfoundland the proposed Lower Churchill Falls development, the Hydro Quebec deal is the only one on the table at the moment.

Many believe that the sale should be tied to a provincial election, but the Graham government is understandably reluctant to go to the polls. A Leger Marketing poll showed 60% of people oppose the deal while 22% support it.

With the Legislature back in session, Conservative Leader of the Opposition David Alward will make his case for an election and push the idea that the province’s future should not be tied to any loss of autonomy.

Having a majority government, the Liberals can make the deal happen, but they must also have their eye on the fixed election date in September, 2010. Their responsiveness to the power deal may determine whether they stay in government.