03 July 2009

R.I. M.O.U. M.I.A.

A memorandum of understanding between the Government of Newfoundland and Labrador and the State of Rhode Island in mid-2007 appears to have vanished.

The MOU committed the parties to a two-phase process that was touted as part of a potential sale of 200 megawatts of power to the small state after 2015. 

The first phase – to last six months  - was to consist of a “mutual assessment of the merits of long-term sale and purchase agreement, as well as the development of an action plan to address any technical, regulatory and statutory requirements of the transaction.”

That was due at the end of 2007 but aside from a vague comment from natural resources minister Kathy Dunderdale in May 2008, there’s no word on whether or not the assessment was ever concluded and what happened to the power purchase agreement talks.

The second phase was to consist of negotiation of a power-purchase agreement and hinged on the successful completion of the first phase.

The power would come from the Lower Churchill River development.