Harper pulling the Strings on Lower Churchill Development

THE FIX IS IN
THE PRICE OF THIS TROPHY WILL BE ASTRONOMICAL

As many people witnessed last week - the Premier had an extreme change of heart toward Quebec as he apologized for earlier statements made regarding political instability in that province - and what Danny called Hydro-Quebec's interference in Lower Churchill development by developing their own rivers.
Then not only is he sorry but Jean Charest is his best bud and Ontario is our partner. The "go it alone stuff" appears to have taken a road to nowhere.
Remember before the last federal election - PM Martin budgeted a 10 billion dollar fund to help provinces and industry develop clean power - well Stephen is not going to honour that commitment. But he's clever our Stephen - he is not going to disappoint Quebec and Ontario - firstly Ontario has a written commitment that the Conservatives will keep the previous government's promise of a half a billion dollar deal to close the coal plants in Ontario. Newfoundland and Labrador is needed for this so that gives us some of the money - but only if a significant amount of the Lower Churchill power goes to Ontario. Simply put Ottawa will be in - if we agree our power goes to Central Canada. In that way Danny gets his trophy and Stephen gets the votes - because in Ontario - energy is the biggest issue.
Next up is Quebec - they were relying on a 350 million dollar commitment to fund their climate change plan. They did not have a written commitment from Harper - so he will live up to that promise and put a little more in Quebec's till - probably including a compromise on equalization changes that would diminish our positive benefits but improve Quebec's. For this Quebec will play nice and allow (at a really good profit margin for them) our power to wheel through to Ontario - they will probably also want a taste of that themselves.
So if Williams is willing to do a resource giveaway by exporting our future industry potential to Central Canada and he's willing to turn a blind eye to Quebec's redraft of our boundaries and completely ignoring the Romaine River development - Ottawa will provide some loan guarantee potential - they will also however want a piece of the ownership.

ATTENTION DEAN MACDONALD

When you were on the Board of Newfoundland and Labrador Hydro - you were supportive of a deal to develop the Lower Churchill and other rivers with Quebec.
This deal included the following:
Churchill Falls Phase II - New Capacity (estimated to be 1000 MW) and Partial River Diversions in Quebec
Hydro Quebec and Newfoundland and Labrador Hydro have also agreed to undertake the following developments:
The St. Jean and Romaine partial river diversions in Quebec will be developed by Hydro Quebec in a partnership with Quebec based local communities.
In conjunction with these diversions, CF(L)Co. will add an estimated 1000 MW of generating capacity at a new powerhouse at Churchill Falls. Hydro Quebec will pay CF(L)Co. a capacity utilization charge which will provide CF(L)Co. shareholders with a fair and reasonable return on equity.
The electricity produced at this development will be sold by Hydro Quebec, at a fixed regulated price, to the Churchill Falls Phase II Marketing Limited Partnership, created under the laws of Newfoundland and Labrador. It will be owned 65.8% by Newfoundland and Labrador Hydro and 34.2% to Hydro Quebec.
The Churchill Falls Phase II Marketing Limited Partnership will, in turn, resell the electricity to Hydro Quebec at a market netback basis which will reflect market prices at the time of sale. This sale produces the value which is to be shared by the partners - 65.8% to Newfoundland and Labrador Hydro and 34.2% to Hydro Quebec.

and so on....

Dean what happened to the Romaine River? You were on the Board then and now you are the Chair - explain this for us all!
By the way it's time we looked at the deal that made Brian Tobin and Dean MacDonald so happy over the next few weeks. Stay tuned!