28 August 2013

JM’s assessment of the UARB Decision #nlpoli

According to the commentator JM, the implementation of the Utility and Review Board conditional approval will mean that “Nova Scotia will receive 60% of the power, for what amounts to about 30% of the cost” of the Muskrat Falls project.

Using information provided by Nalcor to the Public Utilities Board, JM concludes that “there is a potential 37% increase in the incremental rates charged to Newfoundland and Labrador ratepayers for Muskrat Falls Energy” if Nalcor meets the UARB condition.

This would be reduced to a 10% increase if all export revenue in the early years of the project were used to offset the burden on the Newfoundland and Labrador ratepayers. This is assuming that the Holyrood thermal plant can be decommissioned as per the original plan. If the allocation of additional power to Nova Scotia results in Holyrood’s life being extended beyond 2021, then these rates will potentially further increase.