Energy Minister Jack Keir said the transmission concerns raised by Nova Scotia and Newfoundland and Labrador were factored into the revised NB Power deal. (CBC)New Brunswick's reworked NB Power deal is satisfying two Atlantic premiers who had been fighting the original $4.8-billion sale to Quebec because of the potential to restrict their access to the transmission grid.

Newfoundland and Labrador Premier Danny Williams and Nova Scotia Premier Darrell Dexter had both demanded changes to the NB Power deal that was announced in October. The new version, announced Wednesday, seems to have met concerns raised by the two neighbouring premiers.

The scaled-back NB Power deal is worth $3.2 billion and will see most of NB Power's electrical generation assets sold to Hydro-Québec. But NB Power will remain a New Brunswick Crown corporation and will hold on to its transmission and distribution systems.

Williams had accused Quebec of trying to block his province's future energy exports to the United States. His primary objection to the original agreement involved the New Brunswick System Operator being folded into Hydro-Québec.

The independent system operator acts as a kind of traffic cop for the transmission grid, giving all power utilities an equal chance to bid for space on the province's power lines. The system operator holds public auctions when any new transmission capacity comes available.

Williams told reporters Tuesday that, with New Brunswick holding on to its transmission corporation and the independent system operator, talks to deliver Lower Churchill power from Labrador to other markets are back on.

Dexter said the revised deal between NB Power and Hydro-Québec is reasonable and reflects Nova Scotia's concerns over future access to the transmission system. He said the changes come as a big relief, but he still wants to see the deal's small print.

"The premier of New Brunswick should be congratulated on listening," Dexter said Wednesday. "I think it was a reasonable and reasoned position. He heard the concerns that we had."

N.B. listened to premiers

Thierry Vandal, CEO of Hydro-Québec, says the restructured power deal still gives his corporation access to the New England energy market. Vandal was in New Brunswick in December to pitch the merits of the original power pact. (CBC)New Brunswick Energy Minister Jack Keir said the province took into account the objections of Williams and Dexter over future access to the regional transmission grid.

"There was certainly discussions from outside our province on that issue. We listened. The fact of the matter is the system operator will remain independent," Keir said.

Quebec will still get improved access to power-starved U.S. markets, a fact that Quebec Premier Jean Charest stressed Wednesday.

Hydro-Québec is buying NB Power's nuclear and hydro generating stations and is taking over their long-term contracts with NB Power's transmission company.

Thierry Vandal, president and CEO of Hydro-Québec, played down the loss of the transmission system in the restructured agreement.

"Those rights, those transmission rights — which you don't need to own the transmission network to do that — those transmission rights will be transferred over to Hydro-Québec, and that's very positive," Vandal said.

For now, Hydro-Québec must sell New Brunswick-generated nuclear and hydro electricity to New Brunswick. If Hydro-Québec replaces that power with its own electricity in the future, though, it can sell power from New Brunswick into the United States, its long-term goal.