New Brunswick, Nova Scotia, Newfoundland Power Deals

Canadian Press - ONLINE EDITION

N.S., N.L. exploring way to ship power to U.S. that would avoid N.B.
By: John Lewandowski, THE CANADIAN PRESS

9/12/2009 3:46 PM | Comments: 0
Print E–mail Share ThisReport Error HALIFAX, N.S. - Concerns over access to the lucrative and energy-hungry markets south of the border have led Nova Scotia and Newfoundland and Labrador to consider alternative ways of shipping electricity that would bypass New Brunswick, Premier Darrell Dexter said Wednesday.

The two provinces are worried the proposed sale of NB Power to Hydro-Quebec could prevent them from shipping electricity from a potential hydro project in Labrador and tidal power from the Bay of Fundy through New Brunswick.

"That's why the question of transmission is so important," said Dexter following a speech to the Halifax Chamber of Commerce.

"If there becomes a problem at the New Brunswick border, you have to look at the alternatives. You're not going to rule out anything."

One of those options could include the construction of at least 200 kilometres of underwater cables that would cross the Strait of Belle Isle, Cabot Strait and Bay of Fundy to New England, in addition to transmission lines on land.

New Brunswick has repeatedly rebuffed demands by Dexter and Premier Danny Williams of Newfoundland and Labrador to guarantee in writing their ability to wheel their power through its borders if the proposed sale is finalized.

Earlier this week, New Brunswick Finance Minister Greg Byrne said they were prepared to talk to their neighbours about building new transmission facilities. But he said he would not issue a "carte blanche" letter committing them to something that's not in their best interests.

Dexter said he's not sure where that leaves his province's interests.

"They take the position that what we're asking for already exists, but we feel differently about that," he said.

"We raised the question because we feel it's a fair ask."

As Dexter was speaking in Halifax, a rally of those opposed to the sale was held in Moncton, N.B., that featured academics and organized labour leaders.

Unions in New Brunswick are worried about the possibility of future job cuts if coal-fired plants in Dalhousie, Courtenay Bay and Grand Lake are shut down under the deal with Hydro-Quebec.

Labour groups in Nova Scotia and Newfoundland and Labrador argue that ceding control to Hydro-Quebec would limit the ability of their provinces to develop new power sources and sell it to the U.S.

If approved, the agreement would see Hydro-Quebec buy NB Power assets such as transmission lines, offices and most generation facilities, including the Point Lepreau nuclear power plant.

It would also relieve New Brunswick of its debt-laden utility as well as freeze residential rates for five years and reduce industrial rates by as much as 30 per cent in some cases - an arrangement Byrne says is worth another $5.5 billion in savings.