J.D. Irving is warning that its Irving Paper mill in Saint John, New Brunswick, could face closure amid a dispute over surplus electricity pricing.
The company estimates that changes to NB Power's electricity sales arrangements will increase its annual power costs by at least C$10 million.
The warning follows an April decision by the New Brunswick Energy and Utilities Board (EUB) allowing NB Power to sell surplus electricity to customers outside the province at higher market prices.
Previously, the utility offered surplus, or interruptible, electricity at discounted rates to nine large industrial customers in New Brunswick, including several pulp and paper mills.
The revised arrangement has reduced the availability of lower-cost electricity for provincial manufacturers, while allowing NB Power to earn more revenue from external sales.
Irving challenges electricity pricing decision
On October 23, J.D. Irving announced that it had applied to the EUB to reverse the change.
According to the company, approximately three-quarters of the electricity purchased from NB Power for its two Saint John paper mills in 2025 came from surplus supply.
Mark Mosher, executive vice-president of J.D. Irving's forest products operations, estimates that the revised arrangement will increase the company's annual electricity costs by at least C$10 million.
In correspondence with the regulator, Mosher warned that the pricing change, combined with rising electricity rates associated with operational difficulties at the Point Lepreau generating station, would lead to the closure of Irving Paper.
No shutdown decision or closure date has been announced.
Provincial government defends market-based sales
New Brunswick Energy Minister René Legacy has defended NB Power's decision to sell surplus electricity at higher market prices outside the province.
The government maintains that the additional revenue benefits the utility and its customers, while reversing the arrangement could shift costs to other electricity users.
EUB chairperson Christopher Stewart has indicated that the regulator will examine Irving's concerns as quickly as possible, although a comprehensive review could take weeks or months.
The provincial government has said it will await the outcome of that process before considering further action.
Closure warning follows provincial support
The latest warning follows an earlier reduction in operations attributed by the company to uncompetitive electricity costs.
In February 2025, Irving Paper permanently shut down one of its two paper machines, reducing production capacity and affecting approximately 140 employees.
In February 2026, the New Brunswick government announced support of up to C$15 million annually over three years specifically for Irving Paper.
As Paper Advance reported at the time, the assistance was part of a broader provincial package of up to C$54.3 million over three years for businesses across several sectors. The support for Irving Paper was intended to sustain operations and protect more than 183 jobs.
The latest dispute underscores the continuing importance of electricity costs to the mill's competitiveness despite those earlier support measures.
Potential impact on the regional forest industry
Irving Paper produces graphic papers used in magazines, catalogues and commercial printing. Its operations are also linked to New Brunswick's forest products supply chain through purchases of wood chips from regional sawmills.
A permanent closure could therefore affect not only the mill's employees but also fibre suppliers and other businesses connected to paper manufacturing.
