Energy market is open: Graham
Published Saturday November 21st, 2009
N.B. premier denies Danny Williams' request to put grid access guarantee in writing
FREDERICTON - There's agreeing to disagree, and then there's the law.
Premier Shawn Graham appeared comfortable with both as he returned to Fredericton yesterday from meetings with Atlantic premiers and his nemesis-of-late Danny Williams.
According to Graham, his very public disagreement with the Newfoundland and Labrador premier is about as dead set as the international regulatory framework that legally maintains an open energy market with or without the sale of NB Power to Hydro-Québec.
"I have been very clear to Premier Williams; the rules today to sell power into the U.S. are followed by the independent system regulators," said Graham yesterday in Fredericton, flanked by Prince Edward Island Premier Robert Ghiz.
"Those rules, as I have said, are in place to make sure there is an open market system. Those rules today are not changing."
Not even yesterday morning's tour of the Churchill Falls hydro-electric power plant could bridge the gulf between the two premiers.
Obviously oblivious to yesterday's meeting of Atlantic premiers in Churchill Falls, the hydro station continues to pump out almost as much electricity as it produces resentment towards neighbouring Quebec.
Not even The Rock's offshore oil- and natural gas-fuelled rise to becoming one of Canada's few "have" provinces has diminished the anger that still seems to boil within Canada's most easterly residents since the 1969 deal with Hydro-Québec that will live in infamy.
Williams' didn't miss an opportunity to point out the symbolism of the meeting's location yesterday.
"It's symbolic that we're here at the place the original Upper Churchill deal was done and it symbolizes exactly what's happened to Newfoundland and Labrador at the hands of Hydro-Québec," he said in allusion to the deal that provides Quebec with long-term access to cheap power from the Labrador plant.
The recently announced deal to swap NB Power to the Quebec utility in return for $4.8-billion debt relief and estimated billions more in eventual rate relief has only seemed to further aggravate Williams, who has qualified it as a despicable power grab by Hydro-Québec and a complete capitulation by the New Brunswick government.
While Williams' public interference in his neighbours' affairs is partly motivated by the Rhodes Scholar's historical view of the Churchill deal, he is most immediately concerned by his province's ability to export power into the hungry American market from two new proposed hydro-electric projects.
Graham's reassurances that the Hydro-Québec deal won't offer the large utility a stranglehold over Eastern Canadian electricity exports to the United States haven't satisfied Williams so far, and yesterday it was reported that the outspoken millionaire premier demanded a written guarantee.
Graham didn't oblige. Instead, he pointed to regulatory bodies such as the United States' Federal Energy Regulatory Commission, which doesn't tolerate uncompetitive practices.
However, while Graham told Williams that Newfoundland and Labrador's legal right to export energy won't be infringed upon, he didn't say it would be free.
Instead, the New Brunswick premier said he reminded Williams that Newfoundland had a chance to bid on access to the new international transmission line two years ago.
"The current transmission system is fully booked. NB Power had surplus power with the creation of the international transmission line two years ago that went up for auction," said Graham.
"Nalcor (Energy) in Newfoundland made a decision not to bid on that power at that time. Hydro- Québec did and has now booked that power."
He said that means Newfoundland will have to consider the costs of paying for new transmission capacity. "Under the existing transmission capacity there is no opportunity for Nalcor to participate, and that will not change, simply put, because with either Hydro-Québec or NB Power we are going to maintain that block of power for our benefit," said Graham.
He added that New Brunswick will continue to own its Crown lands and wield its energy policy sovereignty, and could therefore work with Newfoundland and Labrador if that province decided to explore the possibilities of an underwater transmission line that would eventually run through this province on its trajectory toward the United States.
"There is nothing to stop new transmission capacity to be built in the province of New Brunswick," said Graham. "If there is a project that makes sense, new transmission can be built in New Brunswick, and any surplus power has to be put up for auction."
Seizing on Williams' insistence on a signed document, Graham added that that the Memorandum of Understanding signed by him and Quebec Premier Jean Charest doesn't prevent the construction of new transmission lines.
"I very clearly explained to Premier Williams that new transmission capacity can be built in this new framework and it's clearly outlined in this Memorandum of Understanding."
Graham was tired when he returned from the meetings in Churchill Falls, but he made it clear that he enjoys the fact that there are more important matters on the agenda than sightseeing at interprovincial meetings these days.
"I have to say this is the first time in a long time that we have seen so much interest around these meetings because we are moving forward and it is stimulating an important discussion about our future and our sovereignty."
* With files from The Canadian Press
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Here is a sample of their weasel words (no offence intended towards weasels)
Information furnished by others which is incorporated or reflected in the rate forecasts is believed to be reasonable but has not been verified by NERA. No assurance is given by NERA as to the accuracy of such information.
NERA accepts no responsibility for actual results or future events.
NERA does not accept any liability with respect to any party’s use of this document or the forecasts herein.
And I see that they have appointed a "power panel" to review this whole mess. Interesting that the chairman is Mr Ganong,(a fine gentleman and a credit to his province) who stands to reap a massive break on the electricity costs for his business. And Mr. McCain as well. Guess what their report will recommend?
Just the fact that the government has appointed this panel says that they are second guessing their decision. A "deal" of this magnitude should have been thoroughly researched in advance before signing anything whatsoever. This is incompetence to the ultimate.
That is not the 'promised' saving Shawnocchio stated; a 'saving' is something that is real & tangible not a 'paper' transaction sometime in the future!!
The MOU doesn't make me feel warm & fuzzy after 5 yrs; I sense not only the inflation increase but additional charges to get the service to my house.
If Jimmy Durante was serious about savings for ordinary NBers he would have demanded immediate rate equal to Quebecers. Even at 3% maximum increase per year over 5 years would be more meaningful to everyone!! IMHO NBers would have been a hell of a lot more accepting of this deal from that aspect!!
Instead the cockroaches in industry get a real sweetheart deal don't expect miracle employment neither it won't happen for a long time.
"We made the commitment that, barring unforeseen circumstances, the maximum average power rate increase for each of the next three years through 2010 will not surpass three per cent."
So the claim that we must have a 3-5% increase for the next 5 years is false. It's just a way to weight the discussion towards the sale to Quebec. We could get all the short term benefits of this deal including reduction of the industrial rates without the long term risk if Shawn would say no rate increase for 5 years and allow NB Power to stop paying taxes.
http://www.gnb.ca/0089/speeches-discours/SOP2009/speech-e.asp