Efforts continue to make Saint John’s municipal electric utility its own corporation.
In March, council voted to petition the province for a private bill to “corporatize” Saint John Energy.
Under the province’s Local Governance Act, municipal governments are not allowed to establish corporations.
The proposed legislation would allow for an exemption, which is needed for the utility to become a municipally-owned corporation.
Jim Shaw, chairperson of Saint John Energy’s board, said this would be an important step forward for the utility.
“Saint John Energy would join the more than 90 per cent of electrical utilities in Canada that already benefit from the flexibility of a modern corporation,” Shaw told city council this week.
“It will allow us to pursue even more innovative opportunities on behalf of our customers. It would enshrine the ability for Saint John Energy to flow benefits back to the City of Saint John.”
The province did not proceed with the bill during the last legislative session. Instead, it wants to address it as part of ongoing local fiscal reform.
Ian Fogan, the city’s utilities and infrastructure commissioner, said he believes the government wants to ensure the plan benefits more than just Saint John.
“I think we’ve been advocating for that, and actually I think Saint John Energy is even preparing to show the province how corporatization of Saint John Energy can help the entire province,” said Fogan.
Fogan said a working group needs to be struck to work through any concerns by the province and NB Power.
City officials hope the enabling legislation will move through the 2025 spring sitting of the legislature.
Even with the changes, Saint John Energy would still be owned by the city and governed by an independent city-appointed board.