If you want some really sharp insight into the latest developments in the Muskrat Falls saga, check out the Thursday post at Uncle Gnarley titled “Don’t tell the Newfoundlanders”.
Don’t stop when you get to the end.
Read the comments. There are 10 more from different people who add even more insight. Here’s a sample:
The Emera application was issued on January 28, 2013.
As soon as the carrot of Figure 4-4 was put in front of the UARB, Nalcor should have realised they were going to grab it, and refuse to give the carrot back. The process was de-railed as soon as this Figure 4-4 was shown to the people of Nova Scotia.
Newfoundlanders should read through the UARB hearings. There was a great deal of dialogue between Nalcor and Emera about surplus power availability. Yet during the June 2013 AGM, Ed Martin responded to questioning from Jim Morgan that he was not approached by Emera about surplus power. Something does not correlate. Something does not add up.
But if you want to see what benefits an open and transparent process brings, then read the economics that were presented to the UARB [Excel file at the bottom of the link above] A clear summary of the costs, the returns, and when the equity will be repaid. This is a level of detail and clarity that Newfoundlanders are yet to see, on a project which we will pay for.
Here in Newfoundland we have a premier who is now saying that the link does not require UARB approval. But if the cost are not recovered in the rate base (15 cents/kwhr) how will it be paid for on the open Market (5 cents)? Who pays?\
Our premier should also understand that in accordance with the National Energy Board, before any power is sold in the US it must first be offered to Canadian utilities at commercially competitive terms. So if they build a link with the intent to sell it to New England at 4 cents, then the terms of their NEB report license dictate that Nalcor will first must offer it to Nova Scotians at 4 cents.
Premier Dunderdale may get Premier Dexter re-elected yet.