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The New Brunswick government has approved more than $600 million in loans for NB Power for the 2008-09 fiscal year, mainly to refinance its multibillion-dollar debt and to fund the overhaul of the Point Lepreau nuclear power plant.

Sharon MacFarlane, the utility's vice-president of finance, said Tuesday it needs to borrow $620 million in 2008-09.

That's more than double the roughly $300 million borrowed during the 2007-08 fiscal year, she said. The hefty amount, which will ultimately be borrowed by the province on behalf of the utility, was approved by the Liberal cabinet earlier this month.

MacFarlane said $200 million is needed to help fund the refurbishment of Point Lepreau, which is intended to add 25 years to the plant's service life. The 18-month project began in March and is expected to eventually cost $1.4 billion.

According to MacFarlane, another $230 million is needed to pay for replacement fuel while the plant is offline. The current reactor at Lepreau provides about one-third of New Brunswick's electricity needs. Replacement fuel will eventually reach a cost of $400 million, she said.

And $190 million of the $620 million will go toward refinancing the utility's debt, which now sits at $3.4 billion.