Botched subsea cable installation nets Muskrat Falls partner $5.9M payout
1.2-km stretch of Maritime Link cable had to be replaced because it settled incorrectly
The owners of the Maritime Link collected a $5.9-million insurance payout for a poorly laid electric cable on the floor of the Cabot Strait in 2017.
The amount, $5,939,000, was disclosed by Nova Scotia Power Maritime Link in a recent report to regulators in Nova Scotia.
The company is a subsidiary of Halifax-based energy conglomerate Emera and responsible for transmission of Muskrat Falls hydroelectricity from Newfoundland into Nova Scotia.
A hitch in the cable
The claim goes back to the summer of 2017 and the laying of one of the two 170-kilometre submarine cables that run across the Cabot Strait.
The company said 1.2 kilometres of one of the cables had to be replaced after a post-installation inspection by a remotely operated vehicle revealed the cable had settled incorrectly on the sea floor.
The company said it created an acute bend "that went beyond the manufacturer's engineering installation specification for the cable and required replacement of that section."
The cost was covered by insurance but who was responsible was not disclosed.
Emera Newfoundland spokesperson Jeff Myrick said information on the insurance claim will be filed with regulators as part of its final capital costing.
Muskrat Falls project over budget
The Maritime Link was built on time and is on track to meet its $1.577-billion budget. It went into service in January 2018.
It is currently the subject of a searing commission of inquiry in Newfoundland.
In its third-quarter report to the Nova Scotia Utility and Review Board, Nova Scotia Power Maritime Link said Muskrat Falls is expected to come online in the second and third quarter of 2020.
In the meantime, electricity has been flowing into Newfoundland from Nova Scotia over the Maritime Link, a direction not anticipated when Muskrat Falls was announced in 2010.