FREDERICTON - The government of New Brunswick intends to reintegrate NB Power into a single entity and is committing to increase its supply of renewable electricity under a 10-year energy plan released Wednesday.

Energy Minister Craig Leonard said the plan will provide more predictability for the public and help keep power costs competitive while meeting environmental responsibilities.

"Low and stable rates is far and away the number one issue that hits people on a daily basis," Leonard said in an interview.

"It's what we heard from the people of New Brunswick."

One of the key objectives of the plan is to undo the changes implemented by an earlier Conservative government that split the Crown-owned utility into separate bodies in an attempt to encourage more competition and private investment in areas such as transmission.

"Unfortunately, seven years past that point, we see that market just hasn't really developed. The split-up incurred extra costs," said Leonard.

"We looked at it and said we've got a structure that doesn't really fit with the market, so we thought it appropriate to take those costs out of the system."

A current three-year power rate freeze is due to end in 2012-13 and the government is forecasting a two per cent increase every year thereafter until 2020-21. Leonard said the increase could fluctuate.

"By no means are we saying those are targets or that they're carved in stone," he said. "We're just simply saying that when this policy is put in place this is what we're projecting."

NB Power will also be mandated to seek an increase in its renewable electricity supply. The intended result will be that, by 2020, New Brunswick would generate at least 75 per cent of its electricity from clean, renewable or emission-free sources, including nuclear energy from the refurbished Point Lepreau generating station.

Leonard said the province would have about 65 per cent of its energy coming from renewable or non-emitting sources once Lepreau is back online, which is expected next year.

The energy plan also calls for the creation of a public energy advocate's office to represent consumer interests and an Energy and Utilities Board that consists exclusively of full-time members. NB Power is also being directed to create a plan to start reducing its $4.45 billion debt.

The plan stems from an energy commission report presented to the government last spring after public and industry consultations. The commission was created by Conservative Premier David Alward shortly after he took office a year ago.

The plan lists 67 recommendations in all. The government says it will create a three-year plan in response with the intention of meeting specific goals.