P.E.I. Opposition wants N.B. power guarantees
Last Updated: Sunday, December 13, 2009 | 4:21 PM ET
CBC News
IN DEPTH: NB Power sale
Internal links
- SPECIAL COVERAGE: Power Play website
- Quebec balked at NB Power sale costs
- Reaction from NB Power deal collapse
- NB Power deal collapse could hurt jobs
- Quebec's NB Power deal cut to $3.2B
- Province retains control of NB Power in revised deal
- 3 Liberal ministers won't vote for NB Power deal
- Hydro-Québec should not fear changes to NB deal: expert
- Quebec minister changes tune on NB Power deal
- NB Power deal has 'out' clause: energy minister
- Hydro-Québec CEO speaks to Saint John business group
- NB Power controversy helps PCs: poll
- Power rate savings overblown
- Cabinet minister clarifies his NB Power view
- Irving firms benefit from NB Power deal
- N.B. throne speech pushes NB Power sale
- Lord government considered NB Power sale
- N.B. Liberals critical of NB Power deal
- McKenna hails NB Power sale as 'courageous'
- Power rate hikes could pass inflation after 2015
- Hydro-Québec CEO says rate structure not his idea
- Mactaquac Dam could cost NB Power ratepayers
- Industry big winner in NB Power sale
- Energy minister defends NB Power sale
- Long-term power rate cap needed: analyst
- Opposition demands election over NB Power sale
- Dalhousie mayor wants help over power plant closure
- Quebec, N.B. strike $4.8B deal for NB Power
- Energy deal must bring N.B. lower rates: Graham
Audio
- N.B. Liberals at a weekend party conference take questions for 90 minutes on the proposed sale of NB
- Liberal Kelly Lamrock discusses his views of the proposed NB Power deal
Photo gallery
Video
External links
- NB Power's website
- Hydro-Québec's website
- Government of New Brunswick: Lower Rates for New Brunswickers' website
- DOCUMENT: Memorandum of Understanding for proposed NB Power sale
- DOCUMENT: Assessment of the Rate Impacts of the MOU between N.B. and Quebec regarding NB Power
- FAQS: Government of New Brunswick on proposed NB Power sale
- TIMELINE: Government of New Brunswick on proposed NB Power sale
P.E.I. energy critic Mike Currie worries losing access to N.B. transmission lines could mean the end of wind power development on the Island. (CBC)P.E.I.'s Conservative Opposition has asked New Brunswick to sign a deal guaranteeing access to transmission lines through the province if NB Power is sold to Hydro-Québec.
The premiers of Newfoundland and Labrador and Nova Scotia made a similar request in a joint letter earlier this month, saying they're concerned their provinces will be cut off from the lucrative energy markets in the northeastern United States.
But P.E.I. Premier Robert Ghiz hasn't asked for any guarantees, said energy critic Mike Currie.
"His silence is certainly scary to a lot of Islanders, especially those people that have an investment in it, and the fact that he doesn't stand up, and show some leadership and stand up for Islanders here is worrisome, that's for sure," said Currie. So he put in the request himself.
'Quebec will have a complete monopoly on the transmission corridor, and all they have to do is fill that capacity themselves and that eliminates everyone else.'—P.E.I. Energy critic Mike Currie
A recent analysis by the Atlantic Institute for Market Studies expresses concerns about the control the proposed deal would give Hydro-Québec over transmission lines to New England and New York, said Currie.
"Quebec will have a complete monopoly on the transmission corridor, and all they have to do is fill that capacity themselves and that eliminates everyone else," he said.
Currie worries if P.E.I. loses access to New Brunswick transmission lines, it would end wind power development on the Island.
"What I'm asking is that that access is guaranteed in writing before this deal is done in a couple of months time."
P.E.I. Energy Minister Richard Brown says the Liberal government is in discussions with New Brunswick and Quebec. (CBC)But P.E.I. Energy Minister Richard Brown said the Liberal government is trying to co-operate with New Brunswick and Hydro-Québec for access to transmission lines, and cheap hydro power.
"We don't have to write letters to Quebec because we're at the table with Quebec, trying to work out a deal with them," he said.
"They're pooling resources in Atlantic Canada in order to supply that big market in the United States. So if we work with Hydro-Québec and with New Brunswick, and if we work together, we have a better opportunity to access those markets than working separately," Brown said.
"We're very small utilities when it comes to working out a deal with the United States."
Newfoundland and Labrador Premier Danny Williams and Nova Scotia Premier Darrell Dexter are pressing New Brunswick for a written transmission deal before the proposed sale of NB Power.
In a letter to Premier Shawn Graham that was made public Dec. 2, they said they want assurances that applications to transmit power through New Brunswick will be handled under existing rules and offered to other Atlantic companies before the NB Power sale is complete in March.
They also want the province to build a transmission line to the Maine border, separate from the power grid that currently exists.
Under the proposed NB Power deal, Hydro-Québec would pay $4.8 billion for the majority of NB Power's assets, a sum that would wipe out the utility's debt.
Additionally, Hydro-Québec would freeze residential rates for five years and cut large industrial rates by about 30 per cent to the level paid currently by Quebec companies. The New Brunswick government values the rate savings at $5 billion.
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