Muskrat Falls will ensure consumers in Newfoundland and Labrador pay much higher electricity rates than they otherwise needed to pay.
The latest Nalcor estimate is that consumers in the province will see a 53% jump in rates between now and 2020, with rates hitting 19.8 as the project enters commercial production.
The information came in the reply by Nalcor officials to a question by Tom Baird. Here’s a screen cap of the portion he tweeted on Tuesday:
Double whammy there for Nalcor:
Bad enough. the 2020 date confirms recent projections from two different independent sources - via Uncle Gnarley - that Nalcor’s megaproject in Labrador is now two years behind schedule. There’s a very good likelihood the real date will be later..
Far worse, you now know you will be getting a massive - and entirely unnecessary - jump in electricity rates due to Muskrat Falls. The cost over-runs are just adding to the amount of the increased cost.
Nalcor’s official figures put the jump at 53% above your current charge For folks using 1500 kilowatt hours a month of electricity, you’d be looking at about another $100 a month.
Compare that to the “seven dollars” more figure Ed Martin was tossing around a couple of weeks ago when word of the last cost over-run and project delay hit the news. VOCM even used it in a headline on September 30:
Nalcor Expects Average Power Bill to Go Up About $7
Wrong!
The truth was that the seven dollar hike Martin was talking about was on top of several other Nalcor increased estimates that still didn’t account for the gap between where we are currently and where Nalcor’s estimates started. More on that below. Key thing here is that official Nalcor figures now put the rate increase at 53%.
Only problem is we can’t be sure Nalcor has its own figures right. Here’s why.