Many of the 2,100 NB Power employees that the local represents work in the Fredericton region.

"There was always a fear that parts of it would be sold off," he said.

Even before the Liberals sought to sell NB Power assets to Hydro-Quebec as part of a $4.5-billion deal, there were thoughts of selling utility assets.

NB Power was broken into separate companies in 2004 in a bid to sell off parts of the Crown corporation.

The government of Bernard Lord based its decision on the 1998 Hay-Savoie report that recommended dismantling the utility to sell some of its generating stations. That report was commissioned by the previous Liberal government.

The Opposition is panning Thursday's announcement, describing it as political theatre and saying it won't save the utility money.

The planned changes can't be formally approved until the legislature reconvenes after the Sept. 27 election.

The government said the move will result in $8 million in annual savings by eliminating duplicate services across the five companies.

The Liberals said that with no future plans to sell utility assets, the companies shouldn't be kept apart.

"There's absolutely no reason to continue down that road," said Keir.

Restoring NB Power as a single body will also allow the province's Energy and Utilities Board to fully examine the utility's operations, he said.

"That means more openness and transparency. It means more accountability. And it means better protection for New Brunswick ratepayers and taxpayers."

The EUB said last week that the structure had prevented it from determining whether a planned three per cent rate hike sought by the utility is justified. The regulator has been able to get financial details from one of the five companies that make up the utility.

Thomas said that while the utility will look to minimize costs as it reintegrates, he doesn't expect that to lead to job losses.

"At this stage we believe that because we have an aging workforce, we believe any gains and any efficiencies we will be making, will be through normal attrition," he said.

Thomas said the utility considered dividing itself further, but the most cost-effective choice was to reintegrate.

"We believe that by not going full out we have already minimized our rate increases,'' Thomas said.

"It will have a positive effect on our bottom line and help our customers."

Thomas said the companies didn't completely separate because the expected market never materialized.

"The market that everybody expected to occur, didn't occur," Thomas said.

He noted that none of the industrial customers who could have left the system during that period did.

The reintegrated structure of NB Power will still allow industrial customers to leave the system or buy electricity from outside the system.

"Because we've been the most-competitive producer of electricity, they haven't gone. But they still have the capability to."

Posted July 16 2010, Source ,