11 January 2012

Local economist questions Muskrat plans #nlpoli

From the CD Howe Institute:

NEWFOUNDLAND’S ELECTRICITY OPTIONS: MAKING THE RIGHT CHOICE REQUIRES AN EFFICIENT PRICING REGIME

Jan. 11, 2012 – James P. Feehan

Newfoundland [and Labrador] should hold off on plans to develop a power project on the Lower Churchill River in Labrador, according to a report released today by the C.D. Howe Institute. In “Newfoundland’s Electricity Options: Making the Right Choice Requires an Efficient Pricing Regime,” Memorial University economist James P. Feehan says the province should first reform electricity prices to better reflect costs and reduce consumption, then assess its options.

For the study go to: http://www.cdhowe.org/pdf/ebrief_129.pdf

- srbp -

6 comments:

rod said...

Reform prices = Jack up the prices & ream the consumer once again.

I don't know anybody who wastes electricity..that's just dumb.
I don't know any senior citizens with electric heat that leave their windows open in the winter, or turn on the clothes dryer with one pair of socks in it.

Increasing the price of something just to try do lessen the demand is punitive and stupid.

Let's use the cheapest solution, natural gas, to generate the power on the island.

Edward Hollett said...

Rod:

All sorts of people waste energy in all sorts of ways, some of which we don't even realize.

What Feehan is talking about is making sure that prices are set so that we don't lose money. Another part of it is ensuring we are not subsidizing energy to the point where people treat it like air and use it willy nilly. Those two things together are a recipe for problems.

We can do other things to encourage conservation and to encourage people to improve the energy efficiency in their homes. In this province we do shag all.

It is most emphatically NOT about gouging consumers. It is about being responsible consumers.

rod said...

I'm not buying it. It ignores the enormous potential of the natural gas just sitting offshore doing nothing.

Edward Hollett said...

Not at all.

You can bring the gas ashore, if needed, develop it, generate electricity and recover the cost of doing so.

Your position on this is 100% in agreement with Nalcor. They need to keep driving demand and promoting use in order to justify their MF boondoggle. Consumers can get what they need at affordable prices under an improved pricing system that, among other things, can also encourage people to become much more energy efficient.

rod said...

Me...agree with Nalcor!!!??

Nothing could be further from the truth!

I believe that energy should not be wasted. Also, that the costs of production should be recovered from the consumers. Furthermore, I believe that the least cost alternatives have not been explored.
Natural gas being one of them. Wind power being another.

Edward Hollett said...

Thought that idea might shock you or give you a good chuckle this morning.

Thanks for the thoughts, Rod! It's all good and all in good fun.