Feehan, electricity prices, and the bigger problem. #nlpoli

Jim Feehan's proposal to change the way we price electricity in the province got some media attention -over the past 24 hours.

Feehan believes that we should set the base price of electricity in this province on the best export price rather than the current proposal to have electricity from Muskrat Falls sold in this province for a price wildly more than that.  Under Feehan's scheme,  the money to pay for Muskrat Falls would come from a reduced profit for Nalcor and hence a reduced divided for the taxpayers. As well, there'd probably have to be an additional tax created to cover off the rest of the costs.

As we noted here in a recent post, Feehan's suggestion doesn't represent any change from what is actually going to happen anyway. He just wants to present it to consumers in a different way.  That's not a bad idea since it is inherently more transparent.  You can see what is what.  Unfortunately, Feehan's idea misses entirely the core problem, which is the electricity policy inherent in Muskrat Falls in the first place.