Fate of Dalhousie Generating Station uncertain

Dalhousie NB Power plant review weighs a moratorium on closure as the energy commission, led by Jeannot Volpe and Bill Thompson, assesses fuel oil options, NB Power's sale plan, and Progressive Conservative campaign promises.

The Progressive Conservative government's special energy commission will examine the fate of the Dalhousie Generating Station, according to Energy Minister Craig Leonard.

The previous Liberal government had put the northern community of Dalhousie on notice with a generating station closure plan for the 300-megawatt facility in mind.

During the election campaign, Premier leader David Alward said he would immediately impose a moratorium on the closure of the town's NB Power plant, alongside a rate freeze proposal he promoted.

Leonard said its fate will now be reviewed the new energy commission, which is being led by Jeannot Volpe, the former interim leader of the Progressive Conservative Party, and Bill Thompson, a former deputy minister of energy.

"In terms of final reports on it, I would expect that would be coming out in conjunction with the energy commission's [report]," Leonard said.

"That's what their task is, to look at all these options, including nuclear plans as part of their review. We'll wait to see what they have to say and we'll go from there."

The northern power plant received its last shipment of discounted Venezuelan fuel oil in September. That cheap fuel is expected to run out next spring.

NB Power and the provincial government have previously explored other fuel options, including coal gasification, for the station after the inexpensive power ran out.

The future of Dalhousie was put into question because of the end of the discounted oil and the fact that many of the major industrial players that the plant once fed power to in northern New Brunswick have closed down.

Dalhousie-Restigouche East Liberal MLA Donald Arseneault sat around the cabinet table when the Liberals planned to shut down his riding's power plant.

Arseneault said he will be watching the Progressive Conservatives very closely to see if they adhere to their campaign promise.

"It's a big decision that the government's going to have to make, but they made some commitments that, I said before, I hope they can prove me wrong," Arseneault said.

NB Power announced in April its plans to put the plant up for sale.

A spokesperson for the utility says a review leading up to that sale is still going on, following a NB Power deal that received panel approval earlier.

Arseneault said if the sale goes ahead, it will be a sign the Tories are breaking their word.

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