According to the Telegram’s Saturday edition, Fortis chief executive Stan Marshall told shareholders that:
“One of those principles is that we will not get involved in minority situations with governments. That is an absolute rule I have observed.”
Fortis is currently partnered in the Waneta hydro project with a pair of power companies owned by the B.C. government to build a $900-million power plant.
“You’ll note we own 51 per cent,” said Marshall. “We would not have gotten involved with less than … 51 per cent.”
Following the shareholder meeting, Marshall was asked why the company avoids minority stakes.
“Simply when things go wrong we’d like to be able to rectify them,” he told reporters.
“If you’re going to go in with a partner you’ve got to know that partner very, very well, have a lot of commonality.
“Governments … their agenda can be very, very different than a private enterprise.”
- srbp -
6 comments:
Should read.
Fortis had a chance to join in the Lower Churchill project but passed on it because the company has a policy of NOT taking a minority interest in government projects.
Stan Marshall was also asked what the cost of the hydro rates would be from Muskrat Falls, he said it was too far in the future to predict. I guess he doesn't have Nalcor's crystal ball!
Missing a "not" in that first sentence. Call Bev Oda.
Thanks, Peter and Brian, for the editorial work.
@Dave. Stan may also have been polite by not forecasting the potentially gigantic costs that could come. Da byes know what this thing was forecast to cost and what sorts of cost increases can occur. Fortis has experience with projects of this size. Nalcor does not.
@Ed...what really scares me is that when Jones has questioned Dunderdale about their figures when the project goes over-budget; Dunderdale refuses to give an answer. Does this mean that Nalcor never looked at worst case scenarios? Or is it that the numbers are too frightening to release to the public?
I think Nalcor has looked at a number of scenarios. I think the guys at Nalcor know that these scenarios don't matter since the government has already endorsed the idea of covering the entire costs of this project out of your pocket and mine.
The reason not to realise the calculations is political: this is the Tory re-election plan. They know what happens to parties when the public turn on their grandiose electricity schemes. If the facts were as simple and obvious as they claim, there'd be a pile of information readily available, including the rate calcs. They released a POS on Day One but now refuse to release their projections top back up the claim this is better than all the alternatives.
They are withholding information for political not business reasons.
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