Carbon tax will hike power rates, says NB Power

Power rates in New Brunswick could become a whole lot higher than expected over the next decade.

NB Power's latest 10-year plan says the federal government's new carbon tax plan could cost it between $660 million and $1.3 billion over the next decade.

The utility estimates it may need a combined 32.6 per cent in rate hikes between 2018 and 2027 as opposed to a series of smaller increases totalling 14 per cent.

That means ratepayers could be on the hook for rate increases of between 1.4 and 2.4 per cent annually on top of previously planned increases.

NB Power says it's still unclear how, or if, revenues from a carbon tax would come back