Examining the future of Saint John Energy
We offer the lowest electricity rates in Atlantic Canada. We have one of the highest reliability rates in the nation. We are committed to a strategy for growth fuelled by innovation.
At Saint John Energy, we are committed to our community. We’ve been in business for nearly a century now, serving our customers and the City of Saint John since 1922. Nothing is more important to us than the city we serve.
“Today, the prospect of selling our utility is on the table once again. We fully expect that there will be a sharp focus on due diligence and a competitive process.”
We offer the lowest electricity rates in Atlantic Canada because we believe that serves Saint John best. We have one of the highest reliability rates in the nation because that’s important to our customers. We are committed to a strategy for growth fuelled by innovation because we want to remain a robust company for the people of Saint John for the next 100 years.
Today, the prospect of selling our utility is on the table once again. City council has been told of an unsolicited bid, and a task force is being established to recommend a course of action.
We are heartened by the reaction of countless Saint John citizens who have spoken up to oppose a sale – it means they believe in us.
The City, as the owner of Saint John Energy, is within its purview to entertain a sale, and we fully expect that there will be a sharp focus on due diligence and a competitive process.
But as council and City management consider our future, we will continue to pursue our growth strategy and continue to enhance our value to the citizens of Saint John.
City could receive up to $7M a year
The growth strategy includes the ability for Saint John Energy to flow regular payments to the City in the form of dividends while still maintaining our lower rate structure.
In its evaluation of our growth strategy, Deloitte estimates that we could flow payments of $500,000 a year initially and, in 10 years, up to $7 million a year. Provincial legislative changes would be necessary in order for us to do this.
“The modernization of our corporate structure that we need from the province would align Saint John Energy with more than 90 per cent of municipal utilities in Canada. ”
We’ve been working with provincial politicians and government officials over the last few years to try to secure the necessary legislative change because we believe restructuring is an important part of our growth strategy. Indeed, such a modernization of our corporate structure would align Saint John Energy with more than 90 per cent of municipal utilities in Canada.
While the debate about our future unfolds, we continue our mission to serve. During the current crisis at COVID-19, our offices are closed but we remain steadfast for our customers and our city. Our employees are working hard to ensure the people of Saint John get the service they expect from us and, of course, our crews remain at the ready to deal with any emergency.
Rates are 10 per cent lower today
At the same time as we remain committed to our customers and our core business, we continue to build on the three pillars of our growth strategy – designed to not only position our utility for a strong future but to service reliability high and keep rates lower.
“If Saint John Energy were sold, it is expected that the City and our customers would lose the advantage of lower rates.”
Today, our residential rates are 10 per cent lower than the rest of the province, meaning that our customers collectively save up to $10 million a year on their electricity bills.
If Saint John Energy were sold, it is expected that the City and our customers would lose the advantage of lower rates.
Growing our impact on the provincial economy
According to an economic analysis by Jupia Consultants’ David Campbell, the strategy will allow Saint John Energy to grow its impact on the economy to $1.4 billion over the next decade. His analysis finds that we currently contribute about $100 million a year to the province’s GDP.
“Our growth strategy will allow Saint John Energy to grow its impact on the economy to $1.4 billion over the next decade.”
One pillar of our growth strategy is the strategic pursuit of partnerships to drive innovation and growth opportunities – not just for Saint John, but the entire province. We are spawning an entrepreneurial ecosystem around future solutions to energy needs and challenges that will help bolster the economy by creating new jobs and prosperity for the city and for New Brunswick.
A second pillar is bringing new renewable energy options to our city. We have already forged a partnership which will see Natural Forces to construct a $60 million wind farm designed to supply about 15 per cent of the city’s energy needs – and save us up to $8 million a year in energy purchases.
Late last year, we took delivery of a state-of-the-art Tesla battery that allows us to store energy and inject it into the grid when it is needed, curbing the carbon emissions and the high cost associated with generating power at peak demand times. This also helps manage the intermittent nature of renewable power.
We are also studying an option that would allow our customers to rent solar panels in ground-mounted solar arrays and have the generation from those panels credited to their power bills.
Strong community-minded company
The third pillar of our growth strategy is focused on bringing smarter energy products and services to our customers.
Our heat pump rental program has been a resounding success with our customers, with demand far exceeding our expectations. Mitchell Apartments, once-condemned housing in the city’s north end now completely retrofitted by a private developer, is the first to feature our new smart home bundle featuring smart heat pumps, smart thermostats and smart water heaters.
“Our innovations in smart grid are helping New Brunswick position itself as a national and international hub for smart grid development.”
We are pioneering a smart electrical grid for our customers, investing millions of dollars into modernizing our infrastructure for the years ahead and clearing the way for the proliferation of smart devices that will allow our customers to save energy and money. Our innovations in smart grid are helping New Brunswick position itself as a national and international hub for smart grid development.
We would not be the strong, community-minded company we are without the talent and determination of our more than 100 employees. Their resolve and dedication to our customers and our city is the foundation for our success, and for that I am grateful.
Ray Robinson is President & CEO of Saint John Energy and Past Chair of the Canadian Electricity Association.