Emera's Labrador power deal a "game changer"...
The following excerpt is from a Globe and Mail article November 2010
He said Emera would reap a windfall in transmission fees if Nalcor can sell its full surplus electricity into New Brunswick and the United States while its Nova Scotia Power subsidiary earns a guaranteed rate of return for selling 20 per cent of the power to its own customers. Nalcor and Emera expect that as much as 40 per cent of the 800-megawatt capacity for the Muskrat Falls development will be available for sale outside the two provinces.
Analysts expect Emera will see a boost to its earnings per share as a result of the deal. Petro Panarites of CIBC World Markets raised his target price for the company’s shares based on a higher earnings forecast, though he cautioned there are still hurdles before the success of the project can be guaranteed.
However, the success of the deal depends greatly on government climate change policies, and on the willingness of voters to absorb higher electricity prices as utilities phase out lower-cost coal- and oil-fired generation and replace it with hydro and other renewables.
Imagine that the more power and thereby industry we can dump into other jurisdictions the more of a windfall for Emera. I think the headline says it all. They already see their (Emera shareholders) future is that resource they call Labrador power. This deal will ruin the future potential for the next two generations of Newfoundlanders and Labradorians. The time for debate on this is now. We have several months to force this issue and we will. Each and every day more information will come out on the extent of this giveaway. This time we must say no and not sit back and wait for our grandchildren talk about this deal the same way our generation talks about the Upper Churchill deal.
On the Tory leadership debacle - the wrong is so obvious that we really must focus on what's important - not whether or not Kathy Dunderdale will personally and professionally prevail. When set against the backdrop of our children's future - frankly my dear I don't give a damn.
2 comments:
Never even bothered to read your post as I am just pleased that the energy will be brought to the population and ice free ports on the island.
I never liked the idea of exporting it as energy is the driving force behind any economy. Usually it is natural gas 60-70% because it is so cheap but we will take what we can get.
I just needed Labradorians to see this post.Ignorance at its best. And we wonder why the big land has a problem with the island.
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