Sue's Blog

Sunday, October 01, 2006

Renewal of contracts and domestic supply behind expansion

Danny's concern that Quebec may use its own transmission lines for its own power generation is a little strange at best.
Sue's Blog - on many occasions talked about Quebec's need to generate more power - both for domestic supply and for renewal of export contracts particularly to Vermont.
Hydro-Quebec has enjoyed unprecedented growth from the low cost purchase of Upper Churchill Power. They spent years enjoying tremendous rates of return on the power as they entered into long-term power contracts south of the border and supplied spot market purchases for jurisdictions such as Ontario.
Sue's Blog has demonstrated that HQ has expanded into many areas including energy smart housing, secondary education, research and development, global partnerships, gas, and industrial partnerships inside Quebec. It has also played an important role in equalization as it chose to show decreased profits in many years and further contributed nothing to provincial coffers.
A couple of years ago - the word came to divest of some global holdings and get back to power generation. This as a result of export contracts coming due for renewal and an increase in domestic power needs. The Energy Plans of Quebec demonstrate this. They are always 20-50 years ahead in the planning and update needs on an annual basis.
They would have loved to boogie again with Labrador and grab another 2500 MW's but not at the expense of delaying their own developments. Labrador continues to be seen as a bonus supply. They do enjoy the dance though - by successfully convincing our Premier that Ontario and Quebec are somehow needed for the Lower Churchill development. The Premier's bedfellows on this are unusual with some Liberals cheerleading the way. The message is "we cannot do this without them". These Liberals of course believe that we need them or we can't finance the project and Danny believes we can't do it without them buying the power. Both are equally ignorant and dangerous assumptions.
Incidentally both of these concepts are not new and were used very "successfully?" with the Upper Churchill.
We do have a partner for the Lower Churchill and it is through the Lower Churchill Development Act. I encourage all Newfoundlanders and Labradorians to read this federal-provincial law.
The power must be developed for industry and domestic supply. The government of Canada has to come forth with an east-west transmission for security of supply and climate change intitiatives. We can then use this to export less economical green energy such as wind, tidal, and wave power. Further if we do a deal on gas supplies - many of which may end up coming out of - yet determined Labrador potentials - export and petro-chemical opportunities are abound.
If you export Lower Churchill Power - you export our future.

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