NB Power plan out today
Published Thursday October 29th, 2009
Premiers to announce details of electricity partnership
The future of NB Power will be revealed to the public this morning during a joint news conference featuring Premier Shawn Graham, Quebec Premier Jean Charest and the executive directors of the two provinces’ utility companies.
It is expected they will detail the content of meetings that have been happening since June with the goal of investigating a mutually beneficial relationship that could bring stability to New Brunswick’s lone electricity provider.
“What we’re looking at is a memorandum of understanding of where we can move forward from the discussions that have taken place to date,” Graham said on Tuesday.
The premier has stated several times in recent days that the discussions have been aimed at providing stable and competitive electricity rates in New Brunswick, dealing with NB Power’s $4.8-billion debt, promoting the province as a regional energy hub and reducing energy costs for small- and medium-sized businesses.
Progressive Conservative leader David Alward has also laid out conditions on any possible arrangement, saying on Monday that it must be good for both industrial and residential customers, protect long-term jobs in New Brunswick and preserve control of the province's energy policy without becoming a financial burden.
He said further conditions could arise in the future, depending on the details announced.
Graham had little to say about the situation yesterday, apart from a humourous reference he made during his speech at the Order of New Brunswick investiture ceremony.
"What a great day to be a New Brunswicker. Pardon the pun, but you can really feel the electricity in the air," he said to laughter from the audience.
The premier received a colder response from Newfoundland and Labrador Premier Danny Williams yesterday. Graham sent Williams a letter on Tuesday in an attempt to assuage his counterpart's concerns about the talks with Quebec and their potential ramifications.
Williams said a deal with Hydro-Québec could inhibit Atlantic Canada's ability to decide its own energy policies.
"My comments are offered in a spirit of good faith to warn you and your people about a decision that could have significant long-term negative impacts," he stated.
"I reciprocally fully respect and understand your obligation to represent the best interests of the people of New Brunswick."
Nova Scotia Premier Darrell Dexter also expressed his concerns about the announcement from Halifax.
He said he talked with Graham yesterday and would speak with Charest following today's announcement.
He also said his province is exploring the possibility of generating tidal electricity in the Bay of Fundy, for export to other markets -- a plan that could also depend on regional co-operation.
"All of these things are associated one way or another with Maritime co-operation," Dexter said. "Obviously, anything that removes anything as major as the ability to cooperate on energy policy from the equation should be a concern to everybody in the region."
He said the details of the announcement will decide whether it will benefit all provinces in the region.
"I have, for the last number of months, been looking to promote Maritime interests. There is a difference between promoting Maritime interests and selling Maritime interests," he said.
But Graham stated in his letter to Williams that New Brunswick will continue to work towards co-operational efforts.
"Please be assured that New Brunswick intends to remain a key player in regional energy initiatives, which are vital to the continued growth and prosperity of the Atlantic region," he said.
"New Brunswick will in no way sell its natural resources to outside interests. Nor will we, in any way, surrender our sovereignty over energy policy."
* With files from the Canadian Press
More The News
Search Articles
More CE Network Sites & Partners:
Comments (43)
All comments are subject to the site Terms of Use. For a full commenting tutorial click here.
Our editorial team relies on filtering technology and our visitor community to identify inappropriate comments. In the event that a site user has submitted offensive content that has evaded our filter, please select the option to Flag As Inappropriate presented within the comment. Thank you for helping to keep this site clean.
I guess we know who's most important to Shawn Graham. Louis Robichaud would be ashamed.
Health Autorities, French Immersion, Uranium and now this? I hope this is the last straw for New Brunswickers and they vote your gym teacher butt out of Fredericton in less than a year!
But this is a really good deal. Dumping a troubled utility along with its massive debt, plus we get cheap and predictable energy rates. On top of that, the corporate rate cuts will attract investment and create/save jobs. And, by using more hydro power, we are reducing our carbon footprint.
Of course, part of the story is how the sale infuriated Danny Williams who wants a line into the US without negotiating with Hydro Quebec. And we all know how the Globe loves stories about an angry Danny Williams.
How long do you think that will last? The only reason Quebec has lower power rates is because they are raping the resources of Newfoundland. Granted, Newfoundland signed a 69 year deal (stupid move by Smallwood), but the deal is almost over. When it is over, you can bet that NL will not be making the same mistake again. The deal has been a sore spot in Newfoundland for decades, and they are all waiting to "renegotiate".
If Que had been smart, they would have taken the offer a few years ago to review the deal. By telling NL to stuff it, they just twisted the knife a little more.
My guess is that you will not see even a 1% reduction in your bill.
"Under the agreement, residential electricity rates in New Brunswick, which are 60-per-cent higher than in Quebec, will be frozen for five years. Industrial rates are expected to be lower under a formula that will discourage Quebec companies from moving to New Brunswick while still offering cheaper energy in the long-term to New Brunswick companies.
The Point Lepreau nuclear generating station was also part of the deal and will be taken over by Hydro Quebec once Atomic Energy Canada completes a $1.4-billion refurbishing contract."
So much for lower power rates!
You will see 0% reduction in your bill, unless you own a pulp mill or a refinery. Residential and small commercial rates are not changing, only industrial users benefit.
Shawn could have stuck up for the common man by demanding residential rates drop to what Hydro-Quebec charges in their own province. Instead he secured a sweetheart deal for billionaires and left the rest of us in the dust.
Our power rates and requirements are now going to be determined by the government of the day in another province. And let's face it, the QC government has never been "stable".
NB is heading down the same road NL did decades ago.
This is a very bad deal.
This will pretty much take care of what very little chance Shawn had getting back into office. I think a monkey could lead the PCs back to victory (not that I want or will vote for the PCs)
Shawn Graham will go down as our worst premier off all time.