Enbridge Gas New Brunswick seeks damages in lawsuit against province

FREDERICTON – Enbridge Gas has filed a lawsuit against the New Brunswick government alleging it lost money because of changes made to a law that regulates the development of the province’s gas distribution system.

In its statement of claim filed in the Court of Queen’s Bench, Enbridge says amendments in 2012 to the Gas Distribution Act eliminated a deferral account from rate calculations made by the provincial Energy and Utilities Board.

Enbridge says under its franchise agreement with the province, any losses incurred during the development of the gas distribution system could be carried forward as an asset to be amortized over the life of the system.

The company is seeking over $176 million and any amounts that would have been added to the deferral account since Jan. 18, 2012.

In a statement of defence, the province denies the allegations and says it cannot be held liable for exercising or failing to exercise its legislative power.

It calls the claim “frivolous, vexatious and an abuse of the process.”