Sue's Blog

Wednesday, March 09, 2011

Who or what is behind the Emera deal? What will it cost us?

Basic Questions on the Emera deal?
1. Why is Emera involved or required?
2. Why was Emera chosen - if the decision was made to seek private investment?
3. What is the cost comparison of the following?
    
     a) The cost of the Emera investment in terms of what they receive for the deal?

     b) If Newfoundland and Labrador borrowed all the money required for the project versus the inclusion of the Emera investment what would the additional amount Newfoundland and Labrador would accrue  in interest compared to what the value over the term for the power we must give up for the investment.

     c) The cost of developing the power for the use of industry in Labrador where transmission is significantly reduced, market fluctuations are minimized, long-term employment and industrial benefits accrue versus shipping the power out?

      d) Will Emera require profit? Why are we including unnecessary profit in the cost of development when it could be minimized if we developed it all ourselves? That is if there is profit - why do we not allow that to accrue to our own corporation in Newfoundland and Labrador versus for a few shareholders of a company located in Nova Scotia?

There is a reason this deal was made the way it was - and as yet we have not been advised as the owners of the resources what that is. We do know that the deal was announced by former Premier Danny Williams who almost immediately after left politics unexpectedly and without any real reason (that is for somebody who expressed such passion for the province). What do you and I know about Emera and who the big shareholders are? What have some already made on the simple announcement that a deal was struck? What do we know now of the former Premier's current investments? 

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