FREDERICTON — The New Brunswick election campaign began Thursday in a race expected to be tight and dominated by questions of leadership.

Premier Shawn Graham is seeking a second mandate in a province that has always given governments at least two terms to prove their worth.

Graham's Liberals squeaked to power in 2006 by a three-seat margin over the Conservatives in the 55-seat legislature, but actually trailed in the popular vote.

Since then, Graham has backtracked on a number of policy changes, the most notable being the failed attempt to sell the province's utility company to Hydro-Quebec. The move was an effort to relieve NB Power of its $4.75-billion debt while freezing power rates for homeowners and slashing them by 23 per cent for industrial customers.

But Graham faced a public outcry over the proposal as people demanded that his province maintain ownership of the utility. His popularity took a beating in the polls, with one in March suggesting he had the lowest approval rating of any premier in Canada.

"I need to connect with as many New Brunswickers as possible," he said in an interview when asked what he needs to do to win the Sept. 27 vote.

Still, Graham said his government has made progress and he wants time to build on their record.

"The future is important and the future does matter, and as a government we've set the foundation in building a healthier New Brunswick, a smarter New Brunswick and a more prosperous and fairer New Brunswick," he said.

He is appealing to the electorate to give him time to grow the economy and create 20,000 jobs over the next four years as a way to pay for an increasing demand on health and senior care services. And he is promising to do so without raising taxes or slashing programs.

Conservative Leader David Alward said Graham is being unrealistic.

"It's not governments that create jobs. It's entrepreneurs, it's business leaders in the province of New Brunswick, and the premier just doesn't get it," Alward said.

Alward's biggest campaign promise so far is a 2 1/2 year freeze on power rates -- one that the Liberals have derided as irresponsible. But Alward said an analysis of NB Power's finances shows the utility can freeze rates while still making a profit and paying down debt.

Alward admits he's not as well-known as Graham, but is confident he can win the election.

"Ultimately it will take New Brunswickers putting their confidence in us and answering the question, 'Can we afford another four years of Shawn Graham's risky schemes and broken promises?' " said Alward.

Donald Wright, a political scientist at the University of New Brunswick, said by admitting he has made mistakes and saying has a plan to address the economy, Graham is already doing the things he needs to win.

Wright said Alward has the bigger challenge.

"He's got to appear like he can run the province. He has to appear like premier material," Wright said.

As for the NDP, Wright said Leader Roger Duguay needs to devote all his energy in his northern Acadian riding of Tracadie-Sheila if the party is to have a chance to win a seat. The NDP has not had a member in the legislature since 2005.

This is the province's first fixed-date election. Under legislation, the election campaign officially began Thursday at 12:01 a.m. local time.

Green party Leader Jack MacDougall is hoping to field candidates in at least half of the province's 55 ridings. The People's Alliance of New Brunswick, which formed in protest to the proposed NB Power sale, is fielding a dozen candidates so far.

The election could be decided in the port city of Saint John, the province's industrial hub, which is expected to have some of the closest races in the province.

In Saint John Fundy, Liberal Stuart Jamieson is not running again. He quit the government caucus to sit as an Independent after demanding a free vote in the legislature on the NB Power deal.

"If the Conservatives can't win that one back, then they're in big trouble," Wright said.

In Saint John Harbour, community activist John Campbell is running as an Independent after losing a closely contested Conservative nomination to city councillor Carl Killen. They'll be up against Liberal Ed Doherty, the province's supply and services minister.

Wright said another tight race could be in Moncton North, where Mike Murphy, who held several high-profile cabinet positions in Graham's government, quit during the height of the NB Power debate to return to his law practice.

Nearby Petitcodiac could be close as well, where Wally Stiles served almost eight years as a Conservative but crossed the floor in 2007 to join the Liberals. Stiles will be running in this election as a Liberal for the first time.

Heading into the election, the Liberals held 31 seats in the legislature and the Conservatives had 21. There was one Independent and two vacant ridings.