Dalhousie mayor wants help over power plant closure

The looming closure of Dalhousie's NB Power generating station will be another blow to the northern community's fragile economy, the town's mayor has warned.

New Brunswick Premier Shawn Graham and Quebec Premier Jean Charest announced on Thursday that Hydro-Qubec would purchase the majority of NB Power's assets for $4.8 billion.

However, the New Brunswick government would retain ownership of the Dalhousie, Belledune and Coleson Cove thermal power plants.

Graham announced that the Dalhousie power plant will be closednext year after its cheap supply of fuel runs out.

'It's turning into a ghost town now. We don't want [jobs] to go anymore.' Janice Phillips, Dalhousie resident

Dalhousie Mayor Clem Tremblay said he found out on Wednesday night that the thermal power plant, which employs roughly 90 people, would be shuttered.

Tremblay is calling on the provincial government to find ways to stimulate his town's economy.

"We are asking the province right away to come up with some infrastructure [projects] that would create some work on the short term during the construction ... and bring some jobs to the town of Dalhousie to offset the loss of NB Power," Tremblay said.

Tremblay said the power plant funnels $1.6 million in annual tax revenue to the town.

Town lost mill, chemical plants in 2008

The town of 3,600 watched its AbitibiBowater mill shut its doors in January 2008, throwing 330 people out of work, and two months later, witnessed Olin Corp. close two of its chemical plants, eliminating another 100 jobs.

Reaction among people in Dalhousie to the news of the power plant's pending closure was predictably negative.

Matthew Bertin said he likely will be forced to leave the northern town now if there is no work left for him.

"With no work being in the area, I'll have to move elsewhere. Moncton, Fredericton, wherever the work is, is where I'll go," Bertin said.

Janice Phillips said the town has lost so many jobs in recent years, it's difficult to imagine the loss of even more.

"It's turning into a ghost town now. We don't want [jobs] to go anymore," Phillips said.

"We want [jobs] to come back."

'Not a good day for Dalhousie'

Liberal cabinet minister Donald Arseneault, who represents the riding that includes Dalhousie, admitted the power plant's closure is a blow to the community.

"It's not a good day for Dalhousie. They're struggling as it is," Arseneault said.

"We worked hard over the past year and a half to bring opportunities and hope back to the community, and we were seeing that, and it was great thing. Today really sets us back again."

The proposed deal with Hydro-Qubec must be approved by the legislative assembly.

David Hay, the president and chief executive officer of NB Power, is travelling to Dalhousie on Thursday to discuss the plant's future with the northern workers.

Questions hang over Coleson Cove

Although the news was not as sombre for workers at the Coleson Cove Generating Station outside of Saint John, there are still questions about its future.

Under the proposed agreement, New Brunswick would continue to own and operate the plant and sell the power to Hydro-Qubec. However,Hydro-Qubec would be able to close the oil-fired power plant with a year's notice.

Coleson Cove underwent a $747-million refurbishment only a few years ago but it has already been sidelined much of the time because of high oil prices.

There are also questions about how the proposed sale of NB Power will impact the special status that Saint John power customers have enjoyed as owners of their own electrical power company, Saint John Energy.

Electricity rates in Saint John are lower than they are in other parts of the province.

Eric Marr, the president of Saint John Energy, attended Thursday's announcement of the power deal in Fredericton but he said he could not get answers as to what this means for his utility.

Marr did say that if Saint John Energy cannot continue to give its 36,000 customers a price advantage then they'd have to ask if there is a reason for its continued existence.