Quebec-N.B. power deal could benefit P.E.I.: Ghiz
Last Updated: Friday, October 30, 2009 | 9:03 AM AT
CBC News
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Audio
- P.E.I. Premier Robert Ghiz discusses the possible benefits of NB Power's sale to Hydro-Québec for his province (Runs: 2:36)
- Play: Real Media »
- Maritime Electric CEO Fred O'Brien on what the sale of NB Power might mean for P.E.I.'s main utility (Runs: 2:35)
- Play: Real Media »
PEI Premier Robert Ghiz says he met with Quebec premier Jean Charest last month to discuss energy options. (CBC)P.E.I. Premier Robert Ghiz says the proposed takeover of NB Power by Hydro-Québec could open up new sources of cheaper, hydroelectric energy for islanders.
Both he and the head of P.E.I.'s utility Maritime Electric say there are still a lot of uncertainties, however.
Maritime Electric currently buys electricity from NB Power and charges Islanders about 14 cents per kilowatt hour.
By comparison, Hydro-Québec charges its residential customers about half of that.
Ghiz met with Quebec Premier Jean Charest last month to discuss options that would see Quebec hydroelectricity make its way to P.E.I.
Thursday's announcement in New Brunswick should help streamline those discussions, he said.
"The majority of our contracts are with NB Power. We do have a minor stake in Point Lepreau. So obviously, now we have a direct correlation with Quebec Hydro, which could make things a little bit easier."
Ghiz dismissed speculation that he went to Quebec to talk about the possible sale of Maritime Electric to Hydro-Québec .
Maritime Electric is an electricity distributor, not a power generator, so the company doesn't have the same appeal to Hydro-Québec, he said.
Quebec rates higher in past
Meanwhile, Maritime Electric's president and CEO Fred O'Brien was surprised to learn the premier's office had already spoken to Quebec about power rates.
But if the premier can get a better deal for islanders, he's all for that, he said.
Maritime Electric has tried to get its hands on Quebec's cheaper hydro power in the past, O'Brien said.
Just two years ago Maritime Electric put out a call for new pricing from electricity providers. At that time, Hydro-Québec did submit an offer to provide power, but it wasn't as cheap as the NB Power rates.
That's because of the cost of transporting the electricity all the way from Quebec, O'Brien said.
Still, Maritime Electric is looking forward to working with a "bigger player" in the power business, he said.
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