"On the anniversary of our 75th year, we find ourselves moving quickly towards an era of moreopen competition. It's forcing us to change our orientation from cost-based pricing to marketpricing and the effect is being felt throughout our corporation," says Lin Titus, President & CEO.
"We believe we are in an excellent position to meet the challenges of competition -- for manyyears we have had the lowest level of rate increases among major Canadian utilities andconsistently high levels of performance in customer service," he added.
Recent cost reductions have resulted in greater efficiency of operations and NB Power'srepositioning strategy has shifted its focus from capital projects to day-to-day operations withan emphasis on efficiency. "NB Power has one of the most modern energy infrastructures in thecountry and to build on this we want to improve our ability to compete on price, quality andreliability," says Titus.
In keeping with an agenda focused on the prospect of competition and the need for greaterefficiency, a number of strategic alliances with private sector partners have been formed. Maritime Information Technologies of Saint John is administering and maintaining integratedcomputer services. A new co-generation agreement with Fraser Inc. will see the forest productcompany convert wood waste to fuel, in a 38.5 MW thermal generator to be completed in 1997.
This past year, NB Power undertook a proactive maintenance program at Point Lepreau that willreinforce the nuclear station's world class reputation. The station will also benefit from a newco-operative staffing arrangement with Babcock and Wilcox International Division that will savemillions of dollars in maintenance costs.
As part of NB Power's fuel diversification strategy, work on the conversion of the Dalhousieplant from coal and oil to Orimulsion was completed in 1995. The project was a success andPower Magazine recognized the achievement with its much coveted Power Plant Award.
Scrubbers installed at Belledune and Dalhousie have helped the utility reduce SO2 emissions byover 80 per cent. An agreement with CGC Inc., will cause the gypsum produced by thesescrubbers to be processed locally for the manufacture of wallboard and other gypsum-basedproducts.
To encourage conservation, NB Power launched a new loan program in 1995 called "Heat Plus". It offers homeowners up to $3,500 to make home improvements to reduce heat loss and lowerelectricity bills.
In 1994/95, the utility invested $200,000 (per year for five years) to help establish an electricalengineering program at the Universit de Moncton and two scholarships were awarded tochildren of employees in commemoration of NB Power's 75th anniversary.
"NB Power continues to play a vital role in the economic development of New Brunswick. Oureconomy is export driven and about 90 per cent of the electricity used by the industrial sector isfor the manufacture of export products. To maintain and attract new industry to the province,rates must continue to be competitive and customer service reliable", said Titus.
"Though our 75th anniversary was a time for much reflection, given the challenges inherent inderegulation and competition, we found ourselves looking to the future. By building on atradition of excellence, NB Power will make certain it remains the preferred choice of all itscustomers for years to come."