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17 April 2015

Has anyone seen the Liberals lately? #nlpoli

This editorial by Craig Westcott originally appeared in The Pearl newspaper and is re-produced here with permission.

Two of the most serious issues to hit Newfoundland and Labrador in some time occurred over the past two weeks and on neither one of them was the provincial Liberal Party prepared to perform its duty. Neither the leader, nor any MHA, was available to give guidance, offer comment, or suggest any indication of the government-in-waiting’s thinking.

The first, and more serious issue, was the tragic shooting of Don Dunphy, who was killed after the Premier’s Office referred one of his social media comments to Paul Davis’ bodyguard detail for investigation.

The tragedy raises fundamental questions about public safety, political management of the police and an individual’s basic freedom to comment on political issues and express dissent without fear of receiving a visit from the police or being blacklisted by the government. How the police visit led to Mr. Dunphy’s death is a mystery that has yet to be explained. That the tweet in question led to a police visit is disturbing. It contained no threat to the premier or anyone else. On that basis, the police visit to his home was a contravention of Mr. Dunphy’s human rights.

The circumstances connected to the killing of Mr. Dunphy question the integrity of our justice and political systems and threaten democracy itself. And yet neither Liberal Leader Dwight Ball nor any of his caucus members have stepped forward to offer their assessment and recommendations. They have scurried into hiding like bats at the approach of daylight. Up to the time of this writing, not a peep has escaped their lips since Mr. Dunphy was shot and killed by the premier’s body guard.

The other issue that has driven the Liberals into hiding is the so-called House of Assembly ‘reform.’ The commission charged with chopping eight districts and redrawing the electoral map unveiled its proposed scheme last week.

NDP Leader Earle McCurdy was out early and often pointing out the flaws in the ‘reform,’ especially when it comes to gutting representation in rural Newfoundland. The Liberals supported the PC government in its unexpected, rash and ill-considered proposal to reduce the legislature.

It was a desperate ploy by Premier Davis to delay the long overdue provincial election and the Liberals fell for it.

Perhaps that’s partly why most of them have lost the use of their voice boxes. The more likely reason, however, is that the proposed new boundaries sets up the Liberals for some internal dog fights over district nominations, even between the leader and a fellow MHA in the newly proposed district of Gros Morne. The only Liberal to step forward with a genuine  comment as of Tuesday was MHA Jim Bennett.

The Liberals’ poor performance when it comes to addressing key issues is not new. Their stand on the multibillion dollar boondoggle that is Muskrat Falls has been vacillating, confusing and, given their failure to oppose a giveaway of gigantic and historic proportions, irresponsible.

Similarly, they have failed to press Davis about his various tricks to delay the election – which according to the electoral law brought in by Danny Williams, called for the vote to have been held by this past January, due to the resignation in January 2013 of Premier Kathy Dunderdale. When Davis told the CBC recently that he was looking at delaying the election yet again, until after the federal vote on October 19, the Liberals maintained silence.

Their reticence is inexplicable. Paul Davis’ PCs have shown themselves to be incompetent, untrustworthy and in disarray. They are unworthy of government.

Surprisingly then for this late in the game, the question begs to be asked: If Dwight Ball’s Liberals are incapable or unwilling to do their job as the people’s loyal Opposition, how can they be trusted to take on government?


Given their timidity, the Liberals are not so much a government in waiting as they are a party in hiding.

-srbp-

13 April 2015

Political Boundary Issues #nlpoli

Some people thought that the electoral boundaries commission wouldn’t get its job done within 120 days.

On Friday, those people found out that was a pretty silly hope on their part.  That’s the day the commission released its preliminary maps of the new 36 districts on the island.  The district maps appeared on the Internet around 11:00 AM and by noon the truly hard-core political nerds had looked at the maps and sized them up.

Here are some quick observations on the boundaries and initial reactions to them.

25 January 2010

How bad is it?

You just know things are pretty tense in Corner Brook.

You can tell because the provincial government has been pouring on the happy-talk while over at the city’s major employer, the company operating the paper mill is looking for a 10% wage roll-back from employees.

The latest happy-talk is a hope-drenched a study on the oil and gas potential for the west coast.

According to the official news release, the study was commissioned based on an election commitment from 2003. 

That’s okay. 

We can wait while you go and check your calendars again.

Yes, it was indeed seven years ago.

The work on this particular report, though, was only done in 2008.  Check the dates on some of the consultation sessions;  that’s the only way to figure out the timelines for sure since most of the document has been scrubbed of dates. You can hunt around and eventually find the news release that kicked it off, from December 2007. 

That would make it a bit more than two years for this study to see the light of day.

After all that time and all that work, the recommendations are stunning: 

  • Ensure a regulatory and administrative environment to maximize investment in onshore and offshore exploration and attract industry operators and businesses to the region;
  • Ensure the protection of key natural resource areas, including Gros Morne National Park, the Humber Valley and the Bay of Islands;
  • Establish a clear environmental regime between the provincial and federal governments;
  • Continue to improve infrastructure in the region through investments in education, health-care facilities, transportation and commercial land availability;
  • Encourage the planning, regeneration and use of existing infrastructure, including that in Port aux Basques, Stephenville, Corner Brook, Deer Lake, Port Saunders and St. Anthony, to ensure it continues to support existing economic sectors;
  • Maintain and upgrade infrastructure specific to the needs of potential hydrocarbon projects, including wharves and air facilities at Corner Brook and Stephenville;
  • Facilitate the training of local residents to help them meet the demand for skills in this emerging sector;
  • Continue to invest in public education, health care, cultural and recreational opportunities to serves the needs of the region; and,
  • Continue to promote the western region as a place of opportunity for business investment and families.
  • In a nutshell:  fix the roads, spend money on things like education and health care, protect the ecologically sensitive and important bits (like Gros Morne)  and “promote” the potential in the area.

    They are about as surprising as the recommendations made by the task force that spent 18 months trying to figure out how to keep more young people from leaving the province.  Its major conclusion:  create work for them so they can find jobs and stay here.

    All standard. 

    All patently obvious.

    Nothing concrete and measurable.

    Like explaining what is meant by “[e]nsure a regulatory and administrative environment to maximize investment in onshore and offshore exploration and attract industry operators and businesses to the region.” 

    Maybe there is a tax issue here or problems with issuing permits. You won’t find anything in the report to explain what this means.

    And the stuff that appears to be specific  - like the suggestion to “twin” selected portions of the Trans-Canada between Port aux Basques and St. John’s as needed – is actually just a confirmation of what has been government policy since 1988.  Under the roads for rails agreement, the provincial government used federal cash to do exactly that.  And yes, for those who need reminding that would be from the last time the Conservatives formed the provincial government.

    So what are these study guys talking about 20 years later?

    Not a heckuva lot, apparently, given that any administration at any time can claim:

    • to have either already done that or,
    • to be doing exactly what was recommended as it carries out the existing maintenance of the existing road.

    Look in vain and you will not find a single thing in this 71 pages of pure bumpf is tied to  drilling more holes, finding oil and getting it into production.

    Things seem to be pretty tense in Corner Brook these days.  That’s just as they have been in other towns in this province since 2003 when the major employer found itself in hard financial straits.

    What’s most interesting since 2003, though, has not been the problems themselves but how the provincial government has reacted to each development.

    The oil and gas study released on Monday seems to be very much par for the course, very much a sign of the times.

    -srbp-

    17 January 2010

    Lower Churchill, Nova Scotia and NB Power: “The sheer economics of it…”

    And it is not like people haven’t said this before:

    Premier Darrell Dexter said he’s not surprised Newfoundland and Labrador is looking for a cheaper option than an underwater cable connection to Nova Scotia for moving energy from Lower Churchill to market.

    "The sheer economics of it are undeniable in terms of a transportation corridor for that energy," the premier said after a cabinet meeting Thursday.

    Read down a wee bit further in the Chronicle-herald story and you get this:

    An SNC-Lavalin transmission system study for the Nova Scotia government estimates the cost of connecting Newfoundland and Nova Scotia at $800 million to $1.2 billion. The estimate of connecting Nova Scotia to New England is $2 billion to $3 billion.

    Yes, stringing underwater power cables from some point in Newfoundland and Labrador to Nova Scotia would cost at least $1.2 billion.  Initial cost estimates are always low on megaprojects like this. 

    But to get to that bit, you’d have to string the long from Gull Island, down to the coast of Labrador, across to the island of Newfoundland down to some point on the southwest coast of the island to get to the bit that costs at least $1.2 billion.

    The cost of that plus the line out to Soldier’s Pond near St. John’s would be $2.0 billion or more.

    You can tell the Nova Scotia option was never being seriously considered.  There isn’t any plan to do it currently under environmental review.

    Now all this too has to make you wonder why Darrell joined in attacking Shawn Graham in New Brunswick. His whole position on this just didn’t make any sense before. And it really doesn’t make any sense now that he admits he knows the whole power line to Nova Scotia is just so much crap.

    In fact, Dexter acknowledges the whole thing is crap because he adamantly insists that there’s no way Nova Scotia taxpayers would be on the hook to help build it.

    “We’re not going to build it,” he said.

     

    Not surprisingly, NALCOR Energy boss Ed Martin is talking about the cost of land transmission through Quebec. Hearings into NALCOR’s application/objections on that front are due to start this week. Land transmission is pretty much the only economically viable way of getting Labrador power out to any market.

    The current estimate for building a new set of power lines across Quebec is $3.0 billion.  That’s not bad considering the estimates for the line Soldier’s Pond for a mere 800 megawatts.

    You can tell the crowd at NALCOR understand the whole game currently being played.  Look at the way it wound up in the Telegram over the weekend:

    Regardless of what happens, officials say the regulator's decisions will provide certainty for Newfoundland and Labrador's energy corporation as it tries to get the Lower Churchill hydro project off the ground.

    "We've collected all the information we need," Nalcor Energy president Ed Martin said in an interview.

    "This is one of the key pieces left. I'm going to have enough information (after) this to be able to complete my discussions with potential customers."

    When people start talking about certainty, then you know they’ve comes to terms with reality.  “At least we’ll know for sure…” should be one of the stages of grief.

    For the record and just for all those people who are still over the shock that the line through Gros Morne was a political racket for nothing, let’s get this straight as well.  The provincial government isn’t concerned that Hydro-Quebec is blocking the precious Legacy Project.

    At least one person in the government is pissed off that the whole thing just can’t get off the ground for one simple thing:

    the sheer economics of it.

    -srbp-

    31 December 2009

    Top Bond Papers posts of 2009

    If you haven’t had your fill of lists, here’s another one.  This time it’s some of the top posts from Bond Papers for 2009.

    Now by top,  we are referring to ones that proved popular with readers, ones that led to much bigger stories, ones that broke some news and -  in the case of whistleblower and breast feeding  - posts that made concrete proposals on issues of significant public importance.   Now these 11 aren’t the only great posts from Bond papers for 2009.  There are plenty every month.  These just happen to be particular favourites.

    Regular readers will notice some topics have been conspicuously absent from the series of year-end posts on top stories.  Not to fear, gentle and faithful readers.  There is another post to come.  That one will deal with the 10 biggest unreported or underreported stories of the past year.  Now they aren’t ones that have been ignored in this corner of the universe.  Rather they are ones that the conventional media in the province have consciously chosen to ignore – for reasons only those editors and reporters can possible try and rationalise – or ones where the conventional media have only reported on some aspects of a much bigger, juicier story.

    Now just to give you a clue, one of the stories below is tied to a larger issue.  The Rhode Island memorandum story is just one aspect of a much larger  tale.

    But more on that later.

    For now, here are some of the best stories of the past year here at Ye Olde Scribbler’s Shoppe:
    1. Equalization flips, flops and fumbles (January).  This one was topping the traffic counter for weeks in the early part of 2009.  it basically documents the raft of different and often contradictory positions the provincial government has taken on Equalization since 2004.  It’s only when you actually sit down and list things off chronologically you can see the entire convoluted mess.
    2. BP’s draft whistleblower law (January).  The provincial Conservatives might not be able to deliver on their 2007 election promise, but your humble e-scribbler helped them out in January.  Here, in its entirety is a workable, draft law that would protect people who reveal dirty secrets in the public interest.
    3. Uncommon tourism potential (February).  Really one of a series of posts on the idiotic idea of stringing hydro power lines through Gros Morne park.
    4. Enhancing east coast search and rescue (March).  BP’s proposal on improving search and rescue capability offshore without resorting to the knee-jerk townie crap about putting helicopters in St. John’s.
    5. Wheeler deal numbers and stuff (April).  How quickly everyone forgot that the provincial government’s energy corporation  can wheel electricity anywhere it can find a market. The April deal was good news when it happened and it is still good news even if the official version tries to pretend the whole thing doesn’t exist. This post puts some hard numbers on the deal.
    6. Kremlinology (June).  The first post in what has become a running – and successful – series.  In June, your humble e-scribbler pointed out that something was off with Trevor Taylor.  By September, the old boy had thrown in the towel and left politics. Sometimes big stories grow out of the very smallest of clues.
    7. The Wookey Hole Witch (July)  Okay so this one is a bit different.  A post on a search for a new tourism actor in a small English town has turned out to be a popular hit for people searching the Internet.  The witch has replaced Janice Mackey Freyer as the queen of the regular search hits.
    8. Rumpole and the Summer of Discontent (August).  Problems in provincial court in Gander and four vacancies on the bench that still haven’t been filled.  
    9. RI contradicts Dunderdale (September)  Natural resources minister Kathy Dunderdale told the people of Newfoundland and Labrador a bit of a nose-puller about why a memorandum of understanding on Lower Churchill power went nowhere. Your humble e-scribbler got the straight story from Rhode Island.
    10. Unsound financial management (September)  Cabinet minister Paul Oram admits what your humble e-scribbler has been saying for four years:  provincial government spending is unsustainable.  finance minister Tom Marshall and others chime in to agree.
    11. 66 at 6 in 2 (October).  A simple idea:  improve public health by having 66% of new mother’s still breast feeding at the end of six months after delivery, and hit that goal within two years.
    -srbp-

    30 December 2009

    Top 10 Stories of 2009

    No need for elaborate commentaries for this one. 

    Here are the 10 stories that  - in the not so humble opinion of your humble e-scribbler - had a huge impact on Newfoundland and Labrador in 2009 and/or which will continue to affect the province into the future.

    Odds are this list will look like all the other locally generated lists of top news story for 2009, even if the ordering may be slightly different.

    1. Cougar 491:  A tragedy that prompted a genuine outpouring of sorrow across the province and left a mark on psyche of many that just won’t go away any time soon. A public inquiry will examine offshore helicopter safety and make recommendations in 2010.
    2. H1N1:  The health pandemic dominated the news in the front of the year and again in the fall. People changed their habits and many organizations changed the way they conduct their affairs:  for instance, shaking hands in greeting was out for a while in many churches. In the end, this province wound up ahead of the country in percentage of population inoculated.  That’s something everyone can be proud of.
    3. The Recession:  It’s been walloping Newfoundland and Labrador much harder than many have acknowledged and the effects of the largest global economic downturn since the 1930s are being felt in everything from layoffs and temporary closures at mines to a continued increase in people from  returning to this province other parts of Canada because they can’t find work anywhere else.  Expect the recovery to take a while.
    4. Hibernia South:  So many people lined up to criticise the Hibernia deal over the past 20 years and everyone one of them turned out to be full of crap.  From Ian Doig to Bill Callahan to Danny Williams, they were all dead wrong.  Danny Williams was so wrong about give-aways he used the Hibernia royalty regime as the basis for his deal to bring more oil into production. The royalty regime hashed out two decades ago and adjusted in 2000 will pour billions into the provincial treasury. The new deal added a couple of tweaks but all the heavy financial lifting is coming via the old deal. The new deal will bring new oil ashore, swell provincial coffers, produce more jobs and set a foundation for future developments around the Hibernia oil field.  The development deal didn’t need all the hype and bullshit the provincial spin machine laid on it:  it could stand up on its own merits and garner well-deserved credit for the administration that delivered the signed agreement.
    5. Double political suicide:  First Trevor Taylor, then Paul Oram.  Two stalwart Tory politicians ended their political careers  - unexpectedly - in the space of a couple of weeks last fall and in the process sent shockwaves through the provincial Conservative party. When Tony the Tory has to write letters to the newspapers defending his team’s future viability, you know the province’s governing Tories were badly shaken. In the subsequent by-elections, the Tories swept one and lost one.  More political changes may well be on the way in the run-up to the 2011 general election.
    6. AbitibiBowater:  A carry-over from 2008, the closure of the century old paper mill at Grand Falls in March shock the economic foundations of the central Newfoundland town. The reverberations are still being felt. Plenty of people never imagined the company was serious.  Surprise!  They weren’t bluffing.
    7. Have Province:  The provincial economy finally generates enough revenue so the provincial government can deliver its constitutional obligations without hand-outs from Uncle Ottawa. Announced prematurely in November 2008, “Have” status arrived in 2009, much to the chagrin of some politicians. 
    8. No Hydro Lines Through Gros Morne:  “The argument was made, quite rightly, by people that you don’t want to create an eyesore in…one of our best tourism attractions in the province.”  Amen to that. There were other political climb-downs in 2009, but this one stood out because it was the most unusual one for the provincial government to stand on its haunches about in the first place.
    9. The ABC’s are over/The End of the Ig-man: The rapprochement between the revanchist provincial Conservatives and their federal cousins happened quietly but the fact it happened will wind up having a profound impact on politics in the province.  That’s especially true at the federal level where the sitting members of parliament have already been dismissed by the national media as DW’s bitches.   What will they do when the next federal writ drops?  What price might the provincial Tories have to pay to get back in Steve’s good books?  Will the whole thing fall apart? Only time will tell. The other half of this story is the Ignatieff implosion.  So much hype; so little delivery.  When their boring stuffy academic  - and an economist to boot – is more popular than yours, you can be assured there is a giant political crisis desperately needing attention.  The second half of the problem:  Bob Rae as the only apparent alternative.  Nice guy but an aging former premier is not likely to catch fire with the electorate.
    10. Darlene Neville. As Russell Wangersky already noted, this is just the latest in a series of problems with people hired to fill important jobs reporting to the House of Assembly.  The problems aren’t confined to one office or to one government administration.  The offices are important ones, however, so there is a pressing need to sort out how they are filled.  Maybe one solution would be to get cabinet out of the game entirely and leave the running of House offices to a special committee of the legislature. 

    -srbp-

    25 October 2009

    Kremlinology 10: Ah to be a Tory in Gander in October, when the dogs are fit to wag

    When the political going gets tough, what better way to handle it than to launch a phoney jihad against a completely imaginary enemy over a completely imaginary dispute:

    The Premier is gearing up for another fight on the national stage. Danny Williams says Hydro Quebec continues to try and block this province from developing the Lower Churchill, now refusing to sign onto a water management agreement for the Churchill River in Labrador.

    For starters, Danny Williams is only pissed at Hydro-Quebec because they aren’t willing to take the ownership of the Lower Churchill he offered then. It’s not that they are so interested in the LC and Danny that they are blocking him, it’s really bothering him that Hydro-Quebec just isn’t interested at all.

    And that’s after five years of desperately trying:

    [Natural resources minister Kathy] Dunderdale told VOCM Open Line show host Randy Simms on Friday morning that over the past five years, the Williams administration “got a path beaten to their [Hydro Quebec’s] door” in an attempt to have HQ become what Dunderdale described as an “equity partner” in the Lower Churchill.

    Dunderdale described the Lower Churchill “piece” as a “win-win” for Hydro Quebec. She said that despite efforts by the Government of Newfoundland and Labrador there was “no take up [from Hydro Quebec] on the proposal.”

    But the biggest thing you have to consider on this water rights agreement thingy is that if the two parties – NALCO and Churchill Falls-Labrador Company – can’t reach and agreement on their own, the whole thing will be settled legally and finally by the public utilities board.

    No big public, hair-mussing fuss required.

    Danny Williams knows this because that’s what he amended the law to say in preparation for just such an event.

    Well, okay first the provincial government tried to screw with the contract – as someone else tried in the 1980 water rights case - but they got caught red-handed in that little bit of tomfoolery.

    While Williams and his ministers tried to downplay it at the time, they were caught so far in the wrong they even had to call an extremely rare emergency session of the legislature to deal with the mess created by someone’s childish legalistic game.

    Anyway, that’s another story.

    CFLCO not interested in the deal on water rights Williams wants?

    Well that’s no problemo.

    The whole thing just falls along according to amendments made to the Electrical Power Control Act in 2007 by none other than Danny Williams’ own administration.

    The public utilities board – headed by Williams’ new buddy Andy Wells – just imposes a deal on the two sides:

    5.5 (1) Where 2 or more persons to whom subsection 5.4(1) applies fail to enter into an agreement within a reasonable time, one or more of them may apply to the public utilities board to establish the terms of an agreement between them.

    (2) Where an application is made to the public utilities board under subsection (1), the board shall establish the terms of an agreement for the purpose of achieving the policy objective set out in subparagraph 3(b)(i).

    (3) An agreement established by the public utilities board under subsection (2) is binding on the persons named in the agreement.

    Poof.

    Job done.

    Pas de sweat.

    And lookit, the company involved here isn’t Hydro-Quebec, it’s the Churchill Falls-Labrador Corporation. That’s the company in which the provincial government’s energy company – NALCOR - owns a 65% stake.

    And if you are still not convinced this is all yet another case of Tory dog-wagging, just consider that this evil foreign demonio Hydro-Quebec hates Williams so much and is working so hard to block the Lower Churchill they were will to sign a deal allowing energy from Labrador wheel across their province.

    Wheel power and they make millions off the wheeling charges. Gee, that’s really putting obstacles in the way of the Lower Churchill. Yep, what better way to block the Glorious Lower Churchill project than demonstrating that Danny Williams can wheel power through Quebec to some other market than Quebec without any obstacles.

    So what is all Danny Williams’ puffed chest really about?

    Not even Ed Martin - the head of the provincial government’s energy company - seems to know.

    But if one Ed doesn’t, maybe your humble e-scribbler can offer some easy suggestions on what issues are causing the provincial Conservatives to go hunting for a distraction:

    - The by-election in the Straits is really not going well at all for the Tories. Then there’s Terra Nova to fight where the Tories haven’t even got a candidate yet and the Liberals wound up having two to pick from. Eight cabinet ministers in one day and four trips by the premier Hisself don’t seem to be working on the voters, at least not the way it is supposed to work.

    Very frustrating when the old tricks don’t work any more.

    - It’s really, really, really painful to make one decision and then be forced to make another. Think Danny Williams and the whole lab and x-ray thing. Jerome Kennedy confessed just this past week to what some of us have known all along: the decision to chop service was made by the entire cabinet.

    That’s why they all stuck so hard to the line about “improvements.

    That’s why they resisted changing their minds right up until the point they had no choice.

    That’s why they tried desperately for weeks to try and blame someone else for the shag up rather than the people who actually shagged up.

    It really bruises the ego to lose.

    - And that’s on top of a string of “losses” including the Gros Morne one. Again, as much as they tried to downplay it, the whole emergency session of the legislature must have deeply embarrassed cabinet.

    - There’s also the ongoing embarrassment of Paul Oram coupled with his decision to up and run when the going got tough. A cabinet minister resigns hot on the heels of another, thereby creating a mini-crisis in the government? Not a way to make the leader feel cheery. Paul Oram took himself off a raft of Tory Christmas card lists with his poorly executed exit.

    - Unflattering comparisons to Roger Grimes? Lighten up a bit, people. It’s a joke.

    - Let’s not forget the admission that the provincial Conservatives haven’t been doing such a fine old job of managing the public purse as they’d claimed. The word Oram used was “unsustainable.” Finance minister Tom Marshall said much the same thing.

    - Then there’s the revelation that the government’s satisfaction rate ain’t what it was purported to be by the government’s own pollster. Between the opposition and local media, three recent CRA polls – never released publicly before – show that the people of Newfoundland and Labrador told CRA one thing but CRA told the public something else. The truth is sometimes painful but it does come out.

    - Then there is the ongoing frustration of the Lower Churchill. As a story in the Telegram noted [not available online], NALCO has to go back and answer a whole bunch of questions for the environmental review on the Lower Churchill and that is now behind schedule. That’s on top of the lack of partners (see above), lack of markets - think Rhode Island - and the huge embarrassment to the government of being forced to abandon their original plan of slinging power lines through a UNESCO World Heritage Site.

    On the whole it has been a very rough patch for the ruling Conservatives, at least from their perspective over the last six weeks and a bit more.

    And what better place for provincial Conservatives to engage in some traditional Tory dog-wagging than the annual convention in Gander.

    After all, that’s where ABC was born, at a time – as the House spending scandal broke in 2006, among other things – when things didn’t look all that rosy for provincial Tories in the short term.

    Come to think of it, Loyola Sullivan packed it in not long after that, as did Paul Shelley and a few others.

    Hmmm.

    -srbp-

    23 September 2009

    More problems for NALCO power line

    Objections are now coming about the proposed power line that would skirt Gros Morne Park.

    Hikers and outfitters are concerned the power line will affect caribou and spoil hiking trails in the area.

    "We've been working for the past four years in the Portland Creek and Parson's Pond watersheds, and we're hoping that Nalcor will be able to compromise and find a more suitable route further east and north than the proposed route," said Paul Wylezol, chairman of the International Appalachian Trail of Newfoundland and Labrador.

    -srbp-

    04 September 2009

    Williams miffed Hydro Quebec rejecting ownership stake in Lower Churchill

    Far from going it alone on the Lower Churchill or seriously pursuing a transmission route around Quebec,  the Williams administration has been working fervently to get Hydro Quebec on board as a co-owner  of the Labrador project. 

    Those efforts have been in vain, according to natural resources minister Kathy Dunderdale.

    Dunderdale  told VOCM Open Line show host Randy Simms on Friday morning that over the past five years, the Williams administration “got a path beaten to their [Hydro Quebec’s] door” in an attempt to have HQ become what Dunderdale described as an “equity partner” in the Lower Churchill.

    Dunderdale described the Lower Churchill “piece” as a “win-win” for Hydro Quebec.  She said that despite efforts by the Government of Newfoundland and Labrador there was “no take up [from Hydro Quebec] on the proposal.”

    The new version of events offered by Dunderdale is at odds with media reports this week of Premier Danny Williams’  speech to the Canadian Energy Forum meeting in St. John’s last Wednesday.  Williams reportedly accused Hydro Quebec of protecting its own interests and of blocking efforts to develop the Lower Churchill. 

    However, Dunderdale’s comments fit with a more careful reading of  Williams’ remarks at the energy forum.

    On Wednesday, Williams accused  Hydro Quebec of blocking the Lower Churchill project by not being interested in it at all.  Instead, the Quebec Crown corporation was pursuing other projects – like La Romaine – which Williams said was inferior to the Lower Churchill:  Williams is quoted by the Telegram in a Friday story [not online] as saying “La Romaine is not as good a project as the Lower Churchill.” 

    Hydro Quebec is pursuing several projects within Quebec, including alternative sources of energy to hydro, all of which are aimed at boosting Hydro Quebec’s portfolio of capacity by more than 4500 megawatts. 

    That was known at the time Williams made the decision in 2006 to “go it alone” on the Lower Churchill.  He also Williams attacked the other projects in 2006.  At that time, he claimed that those projects would get to market before the Lower Churchill and hence would beat out his pet project.  In 2006, Williams vowed to continue in spite of competition.

    Friday marked the first time, however, that there was public acknowledgement the provincial government was actually trying to lure Hydro Quebec into an ownership position.

    This week also marked the first time Williams linked a possible Hydro Quebec financial stake in the Lower Churchill to the 1969 Churchill falls contract.   Williams told the forum that as a result of Hydro Quebec’s exorbitant profits from Churchill Falls, “the very least I would expect Hydro-Quebec to co-operate with us to the fullest on getting the Lower Churchill through.” 

    Previously,  Williams has consistently tied any negotiations with Hydro Quebec over the Lower Churchill with “redress” for the 1969 contract.  That’s inconsistent with offering Hydro Quebec an ownership stake in the new project.

    Williams also said that Hydro Quebec had filed procedural applications in an effort to stall a hearing by the Quebec energy regulator - Regie de l’energie – into an objection filed by NALCOR/Newfoundland and Labrador Hydro over a regulatory issue. 

    That’s a bizarre way to describe things, though.  Newfoundland and Labrador Hydro is one of several interveners in a decision on transmission rates for 2009.  NL Hydro filed its notice seeking intervener status at the last minute.  But since the rate hearings affect more companies than NL Hydro and NL Hydro is one of a dozen interveners, it’s hard to see how a routine regulatory process is part of a plot to frustrate the Lower Churchill.

    What’s more, Williams’ claim flies in the face of successful efforts by NL Hydro to wheel power through Quebec.  Hydro started the process in 2006.   In early 2009, Hydro announced successful completion of a deal  with Hydro Quebec’s transmission arm to wheel power through Quebec to markets in the United States.  

    Efforts to cut a deal with Hydro-Quebec while claiming something else are only the latest in a series of erratic moves and claims by the provincial government since 2003.

    In 2006, Williams rejected out of hand a proposal from Hydro Quebec and Ontario’s Energy Financing Company to finance the Lower Churchill.  The proposal came in response to a called for expressions of interest issued by the Williams administration.  Under the proposal, Ontario and Quebec would buy the power and cover the costs of upgrading transmission facilities within the provinces and across the provincial boundaries.  The proposal also included flexible options on financing the construction of the two generating dams at Gull Island and Muskrat Falls.

    Williams tossed that proposal and several others aside in favour of what he characterised at the time as going it alone.

    In 2006, Williams said publicly that investors should look to the Lower Churchill instead of projects Quebec because Quebec is politically unstable.  Williams later apologised because people found the comment offensive but he did not retract his comments about Quebec’s political climate.

    Williams has also sought financial support from others despite the “go-it-alone” claim. In successive federal elections, Williams has raised the idea of federal loan guarantees with federal party leaders.  He has also tied federal financial support for the Lower Churchill as some apparent form of compensation for having to run transmission lines around Gros Morne national park.

    The erratic public positions don’t stop there. 

    In 2008, natural resources minister Kathy Dunderdale indicated the provincial government was considering a law suit against the federal government over the 1969 contract.  Later in the day, the provincial government backtracked.

    In early 2009, an official with NL Hydro hinted that the provincial government was considering financing options other than the “go-it-alone” version.  Little did the people of Newfoundland and Labrador know what the other options were.

    -srbp-

    02 September 2009

    A world of his own

    “If I had a world of my own,” said Alice, “everything would be nonsense. Nothing would be what it is because everything would be what it isn't. And contrary-wise; what it is it wouldn't be, and what it wouldn't be, it would. You see?”

    And in such a world, there is to be no more talk of running steel erections through a UNESCO World Heritage site.

    He has decided to go around the park.  According to the voice of the cabinet minister, He said He was only kidding on that one.

    Quite the yuck it was too.

    Not once, but twice and the second time with sprinkles: better to wreck the park than risk Granny’s heart surgery or some such.

    There are only two possible real reasons for this change of direction.

    Either the federal government told the province officially to get stuffed or the Premier has a poll that shows the public are adamantly and persistently opposed to his plan to run power lines through Gros Morne to bring Labrador power to the townies.

    The last time the Premier shifted directions this abruptly and unexpectedly – the flag thing – he had a poll that showed the strategy was far less brilliant than thought by the ones who thunk it up in the first place. 

    In this case, the feds might have also told him to forget any plans to try and run the lines through the park, easement or no easement.  You can see a clue to that possibility in the number of times the Premier made reference to needing federal cash for what was supposed to be a go-it-alone option. He keeps talking about federal money like you’d expect him to say if they’d turned him down flat.  They said no, so now they have to compensate me for the inconvenience;  that sort of thing.

    But instead he is claiming credit for making the momentous and correct decision and trying to pretend he didn’t make the incorrect one the first time.

    And then persistently, stubbornly, unreasonably stick to it for half a year.

    The federal government is under no obligation to pay a nickel for running the power to the townies.  That’s all the line on the island will do, you see. There’s nothing in it about running run power to the Yanks.  no matter how many times Danny Williams has tried to claim federal political commitments, there’s not a shred of evidence any ever existed.

    Whoever decided, at least the right decision was made in the end.  It’s just that in this world where nothing is as it appears, the people who fell down the rabbit hole in 2003 will likely never know.

    -srbp-

    17 August 2009

    Route around park shorter

    Contrary to claims by project supporters going around the province’s second UNESCO World Heritage site at Gros Morne would produce a shorter transmission line to bring  Lower Churchill power to St. John’s than going through it.

    Since the Premier’s estimated cost of the jog around ($100 million) was pulled out of his ass – by his own admission – then perhaps there is good reason to believe it too is a gross exaggeration of the actual cost of running a power line from Labrador to the townies.

    So if the line is both shorter and (as it turns out) cheaper around the park, why the instance on risking the park's UNESCO World Heritage site status?

    Maybe it’s because the crowd at NALCO just dusted off their old plan – done before the park existed – and never bothered to think it through.

    How encouraging that thought is.

    -srbp-

    15 August 2009

    A mid-summer night’s gambol

    “Love”, as Shakespeare put it, “looks not with the eyes, but with the mind and therefore is winged Cupid painted blind.”

    Of all the political pixie dust in the province, none has clouded the eyes more than the Lower Churchill.  And while many have played the part,  no Lysanders have been more besotted of this megaproject  than our current one.  

    T the course of true love also never runs true and in this case, the course has run nowhere near as true as claimed. While Danny Williams had hoped to be rid of his current job and on to other things by now, he is now saying he will be around until the project is done.   But not a fourth term.

    Williams said the project will likely be completed before the 2015 election, and he will be done with politics by that time.

    "I can guarantee I won't be around for four terms," the premier said.

    The new target date is before 2015, much as the old date, except that now the Premier  is proposing to finish two dams and a power line through the UNESCO World Heritage site and on to St. John’s in less than four years.

    The power line, though doth wander everywhere.   According to the latest version it will go over hill, over dale, thorough bush, thorough brier, over park, over pale,  thorough flood, thorough fire, and through some other unnamed provinces to get to market.  Where those markets are remains a mystery.

    One major problem with this power line tale is that the project – as laid down in the environmental review documents – is exactly the same one described by an earlier Lysander, namely Brian Tobin.   One line to get the power to Quebec and another down through Gros Morne park – the government’s clearly preferred option – and thence to the townies.

    That’s it.

    There is no line proposed to run from Newfoundland off to Nova Scotia or anywhere else.

    But gentle readers, enough of these jests.

    Let us walk through the Premier’s latest musings on the Lower Churchill, as contained in a Telegram story this August Saturday, and wash the pixie dust from your eyes.  One megaproject-love-struck player is enough.

    1.  Show me the money or Follow the money:  The fact Williams didn’t talk about money should be a clue this whole thing is a crock.  Of course, the Telly reporter also didn’t ask about it, so Williams managed to skate around what likely could have been a very testy and difficult part of the interview.

    Basically, there’s no talk at any point in the entire interview about power purchase agreements and those puppies are the key to raising the $10 billion to build both dams and the transmission lines.

    It’s that simple:

    No money?

    No project.

    2.  Timelines.  Done by 2015, which was the plan back when the project would have been sanctioned in 2009.  The timeline before that was first power in 2011 based on project sanction in 2007.

    Early last year the whole thing was a dodgy proposition according to Williams.  At this point, the environmental reviews won’t be complete until 2010 or 2011, leaving, supposedly, a mere four years years to get all the work done.

    Horse feathers.

    The project cannot be sanctioned – that is approved for construction – until it clears the environmental process.  As such, the project that was supposed to be sanctioned in 2009 is effectively two to three years behind schedule.  Even if everything goes according to the current timeline – and there’s no guarantee that won’t change too – the whole thing will not be up and running until some time around 2019 at the very earliest.

    Anyone who has followed this project consistently will recognise the timelines in this interview are simply a crock.

    3.  And the departure date’s a crock too.  Danny Williams may run in the next election.  Then again he may not.  If Williams stuck to the original timeline, the project would be sanctioned this year and hence he could leave knowing it is on the way. 

    The Lower Churchill isn’t the determinant of Danny Williams political career.  Something else is.  Figure that out and you can figure out whether he will go soon or run again in 2011.  You see, Williams has changed his commitment on departure so many times, it’s hard to take seriously his current version:  that he will leave, definitely, in 2015.

    4.  NALCO – run from the Premier’s office.

    Williams said he meets regularly with officials at Nalcor Energy - the provincial Crown corporation which is overseeing the project - to get updates on the outstanding issues which need to be addressed before the project is sanctioned.

    Anyone who thinks Williams isn’t the de facto head of NALCO can take that quote as a slap upside the head.  There are a raft of implications that go with that but they should be fairly obvious for anyone with a clue.

    5.  The sanctioning issues:

    Some of those outstanding issues for the Lower Churchill include ratification of the New Dawn agreement with the Labrador Innu, an environmental assessment - expected to be complete next year - choosing a transmission route for the power, finding customers for the power and obtaining financing for the project, which could cost $10 billion.

    But Williams is confident that all these matters can be resolved and said steady progress is being made towards the project.

    "None of these are insurmountable, they all just take time," Williams said.

    Well, let’s see.  There’s  money, something Williams didn’t talk about that much at all and that one isn’t insurmountable unless someone plans to stick taxpayers with the full bill.

    As well, there’s:

    6.   New Dawn or, as it is known around these parts, the Fart Man Accord.   The land claims deal with the Innu was supposed to be over and done with last January.  Right now the vote on the agreement is postponed until…well…never.  There is no date for a ratification vote.

    There’s also no sign the federal government has accepted it and they have to be party to any land claims deal with the Innu

    7. The environmental process.  Should be pretty much a mechanical exercise except for the Gros Morne bit.  That one is going to be sticky but only because the feds hold the trump card.  If the thing had included a line to the mainland outside the province, it would be subject to a federal environmental review.  As it is the provincial government will sanction its own power line project – what else would they do? -  but they’ll have to come up with something clever to deal with a backlash over Gros Morne.

    Could that “something” be the jobs created by poking a few holes in the ground at Parson’s Pond which is just outside the park?

    8.  The feds.  Danny Williams has a bunch of federal things that need fixing if his pet project goes anywhere.  At this point, all that is dead in the water, largely due to his own actions over the past couple of years.

    He’s linked the project to federal funding but even as recently as this summer Williams ducked a chance to pitch the project directly to federal cabinet ministers.  Was it because Harper showed up?

    The feds won’t just pony up cash for this.  Odds are good it would come – if it came at all – in the form of an equity stake.  That’s means the federal government would own shares in the Lower Churchill just as they do in Hibernia.  Is that something Danny Williams is prepared to accept since he is already so peeved that the Hibernia shares exist?

    The feds are also not likely to be persuaded by a cheesy blackmail attempt: 

    Williams said the Gros Morne route would probably be the cheaper and shorter route, but he said it could be taken off the table if Ottawa would commit to help fund the project.

    9.  Not the preferred route…  Through Gros Morne and the park’s UNESCO World Heritage site designation, that is.  Not the “preferred route”.  Nope.  It’s the only route.

    NALCO is pushing the line through Gros Morne it’s the only route they have looked at since all they’ve done is just updated plans that have been around since before the park existed.

    Notice, of course, that in polling season Danny Williams is suddenly talking all sweet and purty.  The last time the park route came up he insisted he’d drive the line through the park based on numbers he pulled out of his ass on the spot and a totally shameless bit of nonsense about grandma and her heart surgery.

    The time before that Williams was all for the route saying those who doubted the route would be persuaded once they saw the “trade-offs”.

    10.  The only thing in the interview you can take to the bank. (Don’t buy the “green project” bullshit)

    "This is going to happen, it's just a question of when."

    The Lower Churchill has been a project in the works since the 1950s or 1960s.  It’s been going to happen for 50 years.  it’s always been a question of when. 

    The only thing we can say for certain now besides saying the project will happen at some point is that the “some point’ will not be by 2015.

    -srbp-

    29 July 2009

    When small could mean big

    As renewNewEngland.com reports, the Maine state legislature recently passed an initiative designed to encourage small, locally-owned green energy generation concepts. The bill was signed into law on June 26.

    The new law establishes a six-year pilot program to encourage the development of community-based renewable energy in Maine, defined as a majority locally-owned facility that generates electricity from an eligible renewable resource.  The pilot program has an overall program cap of 50 MW, 10 MW of which is reserved at the outset for projects that have a generating capacity under 100 kW or are located in the service territory of a consumer-owned utility.  To be eligible for the program, renewable energy projects must (1) have a generating capacity of 10 MW or less, (2) secure a resolution of support from their local community (projects with a capacity of less than 100 kW are exempt from this requirement), (3) be connected to the grid, and (4) have an in-service date of September 1, 2009 or later.

    This has all the hallmarks of a growing trend south of the border to focus on private sector development of small energy developments.  It’s based on the belief – apparently -  that small is not only less harmful to the environment but that local initiative and local capital can successfully combine to meet a portion of the nation’s energy needs.  The approach is supposed to create jobs and, since it is handled by the private sector and costs are relatively small, stimulate the growth of local businesses.

    Compare that to the official philosophy in Newfoundland and Labrador that is touting an energy megaproject that thus far has no customers outside the northeast Avalon peninsula.  Incidentally, even your humble e-scribbler’s sister missed the point that the infeed the provincial government is trying to ram through Gros Morne is designed to bring power to townies, not Yanks. 

    There is no plan in public at this point to extend any power lines south of the island of Newfoundland.  There likely won’t be if customers can’t be found for the juice.  Anyone who has read any part of the environmental review documents for the infeed to Soldiers Pond will understand that the thing is justified entirely on a supposed power shortfall on the island within the next decade. 

    They plan to meet that supposed need with Lower Churchill power at a cost of $6.0 to $9.0 billion.  As the 2007  energy plan puts it:

    This demand is forecast to grow at a fairly steady, moderate pace over the next several years. This would result in a need for new sources of supply on the Island prior to 2015, and later in Labrador.  As a result, we plan to develop the Lower Churchill project, which will include  a transmission link between Labrador and the Island.

    Anyone reading the environmental impact documents will also realise that the provincial government’s energy company has effectively ignored the potential for small hydro developments or other small electricity projects to meet local need.  Even when an energy corporation official talks about wind power, it is obvious the corporation is fixated on the export market.  And when they think exports, big is all they seem to see.

    There’s been a moratorium on small hydro projects in the province since the late 1990s.  While the provincial government committed two years ago to make a decision on the moratorium this year, odds are the decision won’t be made on time.  Even if it is made, the energy plan links the Lower Churchill and alternative sources for the island in an “either/or” proposition.  If the government proceeds with the Lower Churchill, alternatives are dead issues.  If the Lower Churchill dies, then small generators are the way to go.

    As for private sector capital investment,  you only have to consider that one of the effects of the expropriation bill last December to see the official attitude to the private sector.  While everyone fixated on Abitibi, the expropriation also included seizing control of just exactly the kinds of small hydro that Maine and others are encouraging and hand them over to the provincial government’s energy corporation.  Star Lake  - totally unrelated to the Abitibi mill - was one of the casualties of the expropriation, as was the Exploits River partnership, a joint venture between Abitibi and locally-based Fortis. 

    If that doesn’t convince you, consider that in the event small hydro projects go ahead, the energy plans mandates that only the provincial government energy corporation will be involved:

    If the Provincial Government lifts the moratorium, it will institute a policy that the Energy Corporation will control and coordinate the development of small hydro projects that meet economic thresholds and are viable for an isolated island system.

    And it’s not like the energy corporation has been very efficient at exploring alternatives to its current obsession with megaprojects.  The earliest proposals for wind energy farms on the island turned up over a decade ago. However, it took another six years for a small project to start on an isolated island and another  seven years for a report to examine the issues involved in wind generation and another two years after that before the first larger demonstration project started.

    If Newfoundland and Labrador followed the approach of other jurisdictions, the people of the province could reaping the big economic and environmental benefits of innovative, small energy generation.

    Unfortunately, the provincial government’s energy plan is fixated on government monopoly and megaprojects. The only things big in that are costs and - of course - project delays.

    The Lower Churchill was supposed to start in 2009.  By the latest estimates, the earliest it could start construction is after 2011.

    -srbp-

    27 July 2009

    Significant digits: $100 million

    No, it’s not Dr. Evil trying to catch up with the times.

    There’s something about $100 million that seems to tweak the current Provincial Conservative administration in Newfoundland and Labrador.

    Even more specifically, it is $100 million coupled with Labrador.

    Take, for example, the plan to string hydroelectric lines and massive steel towers from Labrador to St. John’s via a UNESCO World Heritage site.

    The Premier is backing the proposal to drive the giant steel erections straight through Gros Morne because the cost of jogging around the park -  which he estimates at $100 million – is too high a price. 

    Or during the last provincial election campaign when the Liberals floated the idea of establishing a $100 million fund for economic development in Labrador.

    Oh no, screamed the Tories.  The province might go bankrupt at such a price.

    And then there’s the cost of extending fibre-optic telephone and data lines to Labrador.

    Glorious idea, but the provincial government can’t even think about starting without federal cash.  The estimated cost is $80 million, but that’s only a couple of minor cost overruns or a simple bit of rounding from hitting the magic number.

    All that is strange enough from a government that has money pouring in by the barrel-full from oil deals signed before 2003 when they came to power.

    But, in fact, the Tories in power have so much cash floating around from all those old deals that, according to the last budget, they’ve got almost 20 times $100 million sitting in temporary investments.

    Bankruptcy is far from imminent.

    Still, the consistency of the talking point that connects $100 million and Labrador as being something problematic, just leaps out as a pattern.

    Labrador.

    $100 million.

    There’s something about the two that sounds awfully familiar.

    A few clicks of the keyboard and up it pops.

    Faced with bankruptcy in the early 1930s, the Dominion of Newfoundland tried to sell Labrador to Canada as a way of picking up some fast cash and retiring the crushing debt that had been accumulated by decades of over-spending and mismanagement by Tory and Grit and coalition governments alike. 

    Labradorians didn’t even have a vote before the 1946 National Convention but their lands, won by Newfoundland in a 1927 Privy Council decision on the boundary went up for sale before the ink was even dry on the documents.

    The asking price was $110 million.  In some accounts the $10 million bit gets dropped off, probably due to rounding.

    The Canadians weren’t interested.

    Seems like the connection between Labrador and $100 million is passed on genetically because it just keeps seeming to crop up among local politicians.

    -srbp-

    26 July 2009

    Tourism industry association caves on Gros Morne hydro towers

    The province’s hospitality industry now supports the provincial government’s plans for Gros Morne national park, expressing their belief that a “balance” can be found in the government’s plan to sling hydro lines along 120-foot-high steel towers along the most visible, public portions of the park.

    There’s a story in the Western Star from last week.

    Hospitality Newfoundland and Labrador – the province’s tourism industry association -  issued an unprompted and undated statement  in early July that said:

    …By being an active participant in this process and working with stakeholders to find the best solution, HNL is optimistic that a balance will be found. As business owners, the tourism industry understands the need to be financially prudent in making long term economic decisions and is confident that the long term economic and social impact of Gros Morne to the province is being considered during this process.

    That statement appeared around the same time the Gros Morne story reared its head again publicly.  It came about a month after the provincial government created a new provincial tourism board.  The membership includes a bevy of current and former HNL heavyweights including HNL president Bruce Sparkes.

    The language in the statement – especially the bit about being “financially prudent”  - matches perfectly the line taken by the Premier that he was prepared to sacrifice Gros Morne’s UNESCO status because the costs of going around the park might possibly, theoretically, be too high.  Financial prudence dictated the shortest route, especially if that extra money could be spent on health care instead.  Never mind that the province’s energy corporation would be building the lines with borrowed cash not money from the provincial treasury.

    The Premier estimated the cost of going around the park at $100 million.  The provincial government currently has cash assets on hand of upwards of $1.8 billion.

    By the time HNL issued its new position, the “long term economic and social impact” had already been considered of course, and promptly dismissed by the provincial government.

    As the Western Star noted, the new HNL language is also radically different from the statement HNL made in February when the towers controversy first appeared.  Back then, there was an unequivocal statement that the towers were the wrong way to go:

    "Running towers in front of dynamic and dramatic landscape is going to take away from the natural beauty of it," [HNL president Bruce] Sparkes said. [CBC story]

    "From a photographic, awe-inspiring point of view, it's going to take away that. And who wouldn't say, 'Gee, too bad they put that pole line there?'"

    What hasn’t changed in the government position, as expressed by the Premier:

    “When park officials look at what the trade-off happens to be for the benefits we get at the end of day ... I think they will see the benefit,” he said.

    Seems like that happened, but not to the park people. Who knows?  Maybe the HNL rethink was aided by a few phone calls and e-mails.

    What makes the HNL about-face even more spectacular  something your humble e-scribbler noted back in early July when the erection story heated up again:  “the surest way to put an end to any news story about the threat to Gros Morne  from the potentially unnecessary infeed from the Lower Churchill – if that even gets built – is to have the tourism people state publicly that having Gros Morne festooned with steel girders and power lines  is just a lot of fuss about nothing at all.”

    The tourism people have spoken.

    -srbp-

    09 July 2009

    It’s not easy being green

    Well, at least not under a variety of American state and federal laws in New England especially if you are proposing a hydroelectric project like the Lower Churchill.

    Sure, we all think of hydro power as pretty friendly to the environment and a source of energy that is pretty low on carbon emissions.

    Heck, in the ruckus over erections in Gros Morne, the provincial government has been pretty quick to talk about how green – as in environmentally friendly  - the Gull Island and Muskrat Falls projects are.

    As an aside – in some of the online discussions,  some people have been talking about ripping through the park because it’s a way to sell the power to the United States.  Let’s get this clear:  there is no current proposal to build any transmission lines to the United States through Gros Morne park. 

    The line that Danny Williams would drive through a UNESCO World Heritage Site ends just west of St. John’s.  It’s the same line Brian Tobin proposed in 1998.

    That’s right. 

    It’s a line to bring Lower Churchill power to townies, not Yanks.

    And while we are at it, Holyrood will not close either even with the infeed.

    The comments coming from some quarters makes plain just how much fundamental ignorance – lack of information, awareness and understanding  – there is out there about major public issues.

    But anyway, back to green energy and American markets.

    Turns out that American state and federal governments are working to develop new, renewable sources of energy.  They are looking at a system of emission credits and what sorts of projects would qualify for credits. 

    If the current trend holds, Big Hydro projects  - just like nuclear plants  - won’t count toward renewable energy credits.  New England states have various rules in place currently that look at qualifying hydro power from plants of less than 100 megawatts.  In some states, even these small hydro projects must not change the water level (i.e. no dams) or otherwise impact the natural environment.

    A bill currently in the United States Senate – HR2454 the American Clean Energy and Security Act 2009 – limits hydro that qualifies for certification to incremental power from technological upgrades to existing plants, generation from existing dams built for other purposes and “hydrokinetic generation”, that is power generated by ocean currents, wave action and the like.

    So two honking great dams across a river, even a few thousand miles away, isn’t necessarily where the Americans are looking. Missing MOU anyone?

    Not surprisingly, some states are looking to find a local economic spin-off from new energy sources.  Rhode Island recently adopted a bill mandating the state electricity distribution company to enter into long term power purchase agreements for upwards of 90 megawatts of power from new renewable sources locate din Rhode Island.  They are looking at a $1.5 billion wind farm project  - among other things - to help meet that requirement.

    This doesn’t mean that the New England markets are closed to hydro power from Canada but it does mean that proponents of the Lower Churchill are not looking at easy pickings.  

    If states and the US federal government are getting stickier about local renewable projects, there’s a very good chance they’ll get stickier about imports as well. 

    That’s the thing about American democracy:  people get to participate.  If an environmental lobby builds up against a project like the Lower Churchill, the thing could have a rough ride.  Imagine what might happen if environmentally conscious consumers managed to figure out that the same people promoting this hydro megaproject are the same people who turn up on CNN promoting some old-fashioned seal bashing.

    There’s anothing thing too:  look closely at some of this legislation, like say the Rhode Island bill, and you can see limits on the length of the purchase agreements with a maximum of 15 years.  That’s also an issue to think about given that a project the size of the Lower Churchill would likely be financed over a period twice or three times that.

    Are states going to be willing to sign PPAs over such a long period?

    Would bondholders be prepared to offer up cash with the prospect that markets could go soft half way through the bond life? How about American lenders who are already hurting through the recession and who may still be leery of investing large sums even after the recession ends?

    Any way you want to look at it, the Lower Churchill project is still a very long time from starting.

    There are currently no power purchase agreements of any kind with any customer. No PPAs means financing will be much tougher on a project that was estimated to cost at least six to nine billion dollars when talk about the project was revived in 2005-2006. Imagine what it will cost in two years time.

    The environmental review process won’t finish until 2011 and that alone puts the project two full years behind the schedule mapped out in 2006.  Hydro Quebec is already well on its way to having power to market from new projects by the time NALCOR is looking to start construction of the Lower Churchill. They’ll have a goodly chunk of their new projects done by the time Muskrat and Gull Island turbines start turning, even if the current 2018 timeline for first power could be met.

    On top of that there are serious questions that still exist within the Innu community about the draft land claims agreement between the provincial government and the Innu.  Bear in mind that the federal government should be in there as well, but so far hasn’t offered any comment on the darkness that has befallen the New Dawn.

    And all of that is without considering the potential for even a teensy bit of public backlash over environmental issues.

    It really isn’t easy being green, is it?

    -srbp-

    07 July 2009

    Gros Morne erections trump the unforgettable natural environment

    Natural ecosystems were worth protecting in 2007 – the election year – because they define us as a people.

    In 2009, yeah, maybe not so much.

    The 2007 Progressive Conservative election platform:

    “Among our greatest sources of pride is our clean and beautiful natural environment. It defines us. It makes living here wonderful. It makes visiting here unforgettable. Our natural ecosystems are worth protecting for future generations of Newfoundlanders and Labradorians.”

    Also from the 2007 Tory election platform:

    …enforce the provisions of the Sustainable Development Act regarding the responsible and sustainable development of our natural environment, ensuring that our resource development decisions address the full range of environmental, social and economic values and that workers, environmentalists, industry, communities, aboriginal peoples and others have a say in how our resources are managed. [Note:  You actually have to have a sustainable development act that’s in force in order to enforce it.]

    From 2009, the plan for massive steel erections in a UNESCO World Heritage Site, as CBC describes it in their online story:

    Newfoundland and Labrador Premier Danny Williams says he is willing to risk losing Gros Morne National Park's UNESCO world heritage status if the cost of preserving it is too high

    -srbp-

    An equity stake in the province’s natural heritage

    A cynic, Oscar Wilde once wrote, is a fellow who knows the price of everything and the value of nothing.

    There is no word, apparently for someone who knows neither the price of stringing hydro lines around Gros Morne National Park nor the value of leaving the park free of the steel girders and humming wires.

    In his first media scrum since returning from a weeklong junket to Europe,  Premier Danny Williams said that he was prepared to risk the World Heritage designation for Gros Morne because the cost of the alternative might be $100 million. 

    “Might be” since the thing had not been properly costed, according to the Premier:

    "We can't just start carving out those kinds of dollars … without even have a proper costing. It's wrong to oversimplify it, but if it meant putting it into health care as opposed to putting it into UNESCO, I would put it into health care, he said.

    The value of Gros Morne, untrammelled by NALCOR Energy’s plan to build a giant power line from Labrador to the northeast Avalon, should be obvious to all those who appreciate the national park’s natural beauty.

    It’s value  - sans girders - to the provincial tourism department should be equally obvious to everyone who has watched a television ad or looked through a tourism marketing brochure.

    But in the meantime, that’s a pretty startling admission:  that after four years and as the project barrels along, the proponents don’t know what it would cost to find another route a few miles to the east of the one they have in mind.

    It smacks of scrambling rather than a careful weighing of all options, each properly studied and costed.

    Then again, that’s what you’d get if you just abandoned the process you started and decided to go down an entirely different road from the one first proposed. You wind up looking at plans made 25 or 30 years ago, ones that involve slinging lines along a stretch of ground that – when the plans were hatched – weren’t inside a national park.  The national park didn’t exist then.

    But the whole thing gets a wee bit bizarre – there’s that all-too-familiar-word again –when you consider that the Premier seems to think $100 million is too much money to talk about:

    "It's not as simple as that, but we do have to strike that balance. It's not a small amount of money. It is a significant amount of money."

    This is a guy who supposedly is used to dealing with grand schemes that cost in the billions.  The one he wants to push through the park is estimated at upwards of $10 billion.  Even the low-end estimates, which few would believe, put the total cost at somewhere between six and eight billion.  The infeed line alone, the one through the park, is likely to cost a couple of billion.

    $100 million against $2.0 billion.

    What is that? 

    5%?

    That’s like half an offshore equity stake’s worth of only a fraction of the whole project.

    Surely to Heavens, when put in those terms, Danny Williams can figure out that shifting the steel girders outside the park isn’t really much of anything to do.

    He can think of it as his equity stake in the natural heritage of our province.  A piece of the action that he can pass on to future generations.

    Shifting the power lines outside Gros Morne might not conjure up the big buck announcements the Premier seems to thrive on, but by recognising the simple value of unadulterated nature, Danny Williams could show that he actually knows both the price of something and the value of something far greater.

    -srbp-

    One Trick Pony Update:  Apparently, as much as Danny Williams likes to talk about the importance of going it alone, the whole Gros Morne thing seems to be a bit of a dodge to try and force some money out of Uncle Ottawa to fund the whole Lower Churchill scheme:

    "If the federal government is interested in an alternate route because of the importance of the UNESCO designation, because of the importance obviously of Gros Morne as a federal park, then I would expect the feds to participate with us in rerouting that cost," Williams said Tuesday.

    The cost of developing an alternate route could be as much as $100 million, Williams said, but he added that was a preliminary estimate.

    "If in fact we can get support from the federal government and if in fact we can justify another route, then that's something I would prefer to do ... but I can't turn around and say today without proper costing that that's something I would definitely do," he said.

    "It's a significant amount of money."

    Of course, the project has never been a go-it-alone affair.  Williams has been trying to find federal backing for his grand design from the beginning.

    05 July 2009

    Kremlinology 3: Gros Morne version

    The provincial government’s  tourism folks love Gros Morne with all its beautiful views and its UNESCO World Heritage Site designation.

    The provincial government’s energy folks want to sling 40-odd metre tall hydro towers through the park because it would be cheaper than going around the park.

    So when the Telegram goes to the tourism department looking for a media line on a project that has – presumably – been endorsed by cabinet and therefore all of government, the tourism people suggest that reporter go speak to someone else.

    Like the natural resources minister, she who oversees the line slingers.

    Now it’s not like the comment was about something outside the tourism department’s mandate.  They should have a line on it ready to sling in the event someone asks them about the power line slinging.

    But they didn’t.

    They instead pointed to the other bunch.

    And that’s a bit odd.

    It suggests that somewhere in the tourism department there is at least one e-mail, at least one memo perhaps pretty high up the departmental food chain that considers the liner slinging to be “the most serious threat” to any tourism campaign featuring the pristine natural beauty of the province.

    There might even be a document of some kind that says that, having looked at the “trade-offs”, the tourism people don’t like the idea of high voltage direct current electricity wire zapping bugs all down through the park.

    Because, the surest way to put an end to any news story about the threat to Gros Morne  from the potentially unnecessary infeed from the Lower Churchill – if that even gets built – is to have the tourism people state publicly that having Gros Morne festooned with steel girders and power lines  is just a lot of fuss about nothing at all.

    But they didn’t do that.

    The tourism people passed the buck to someone else.

    Very curious.

    -srbp-

    04 July 2009

    Gros Morne international status threatened

    Gros Morne national park could lose its designation as a UNESCO World Heritage site if NALCOR Energy, the provincial government’s oil, gas and hydro company, succeeds with plans to string a series of high-voltage electric transmission lines through the park.

    There are alternatives but NALCOR has dismissed them already as being either costly or technically difficult.
    The lines are part of a transmission infeed to bring power from the as yet undeveloped Lower Churchill river to eastern Newfoundland.

    The Telegram has that as the front page story on Saturday.
    The Gros Morne transmission plan generated opposition from environmental and tourism groups, along with Parks Canada, which must approve the project.


    In February, Hospitality Newfoundland and Labrador (HNL) chairman Bruce Sparkes first raised the spectre of Gros Morne losing its spot on the United Nations list.


    "It is a UNESCO World Heritage Site and it's been suggested that if you put this corridor down through it, it (may) lose the designation," he says.


    "We believe Parks Canada is correct in opposing this."
    No one from HNL or Parks Canada would comment for the Telegram.


    Deputy premier and natural resources minister Kathy Dunderdale was also unavailable for comment.  While Dunderdale was consumed with the fisheries crisis this week, her office couldn’t even deliver a statement by the Telegram’s deadline, as the department had apparently intended.

    In February, Bond Papers and others first raised the issue of slinging transmission lines through the park.

    The Premier backed the idea:
    “When park officials look at what the trade-off happens to be for the benefits we get at the end of day ... I think they will see the benefit,” he said.
    One of the trade-offs would presumably be the international designation.  According to the Telegram only two sites have lost the designation.

    When the park was established in the 1980s, transmission towers through its pristine natural beauty was described as “the most serious threat” to Gros Morne.

    The power lines may not be needed.

    A NALCOR official recently told a business group in Gander that adding more wind generation to the island system would not be a good idea until the transmission line is built.  The transmission line would allow surplus power to be exported.
    [ NALCOR manager of business development Greg] Jones told The Beacon the province can only produce a limited amount of wind energy because it can cause water to spill from hydro dams if excessive amounts are produced. This roadblock will be eliminated with the introduction of a transmission link in 2016 for the Lower Churchill hydro project.
    The infeed is being justified, in part, on the grounds that the island will need additional power sources by as early as 2013. 

    However, the environmental assessment documents for the project project only modest growth in residential and industrial demand in the future.  That was before the AbitibiBowater paper plant in Grand falls closed and before Kruger decided to shut down one of its paper machines at Corner Brook on what appears to be a permanent basis.

    Jones’ comments suggest that current and future demand on the island can be met with much smaller, less costly alternative generation sources.  Adding wind power now would add to the current surplus, if the full implication of Jones’ comment about water spilling over hydro dams is clear. 

    But that also means that added wind power and small hydro developments could continue to displace the Holyrood generating plant and still meet the island’s energy needs.  Holyrood burns oil to generate electricity and has been a subject of ongoing environmental controversy.

    While the plant is currently operating at a severely reduced capacity, due to low demand in the summer months, the infeed proposal would require the plant to operate its three generators year-round in order to stabilise the power transmission from Labrador.

    The government’s 2007 energy plan committed to replacing Holyrood with other forms of generation.  Also in 2007, natural resources minister Kathy Dunderdale highlighted replacing Holyrood as one of the reasons for building the infeed.

    In Dunderdale’s scenario selling Lower Churchill power to consumers in eastern Newfoundland  was one way the government planned to under-write the cost of the multi-billion dollar Lower Churchill project. 

    No other power purchase agreements have been identified.  A memorandum of understanding with Rhode Island on a block of 200 megawatts appears to have gone no where since it was signed in 2007.

    -srbp-
    BLTN Update:   CBC is running the story as well, on Monday.  The most interesting feature of this online story are the comments from a raft of pseudonyms - most of whom apparently like the idea of slinging power lines and steel girders through a park where right now the tallest power line is on a wooden poll. 


    Nature schmature.