A storm in January 2017 caused millions of dollars in damage and costs for NB Power. PHOTO:Radio-Canada/René Landry

Taxing residents for disaster costs

Power utility seeks new tax to cover disaster losses

How often have you heard that an insurance company won’t or doesn’t cover certain “acts of god”, things like storms, hurricanes, earthquakes and do on.

Now, a electric power company in the eastern maritime province of New Brunswick is proposing a new tax on consumers to pay for utility company losses from storms.

A wind storm in 2014 also caused huge damage to power lines in the millions of dollars. mostly from trees and branches bringing down power lines PHOTO: Michael Stuart/CBC

NB Power, a crown corporation, is seeking authority to levy surcharges on customers to cover losses from major storms, hurricanes, ice storms and other unexpected events.

The company suffered major expenses of some $63.8 millioin from ice storms in December 2013 and January 2017, and a summer wind storm in 2014.

Labelled a “weather surcharge” by critics, it raises questions as to the duration of such a surcharge especially as extreme weather events are becoming more frequent and more severe.

2017, broken power pole,transformer and lines. There are costs for their replacement, but also for the worker overtime, and expenses paid to crews brought in from elsewhere to speed repairs. All these costs quickly mount into the millions of dollars. PHOTO:Radio-Canada-Gabrielle Fahmy

In 2005 an American power industry report suggested that power utilities across the U.S. create its own insurance scheme to cover major costs due to a variety on natural disasters.

Still, many are now wondering whether the NB Power request might expand to other power utilities seeking to make consumers pay for the costs of “acts of god”.

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