Utility deal worth billions
Published Thursday October 29th, 2009
NB Power | Province to announce details of agreement with Hydro-Quebec
Premiers Shawn Graham and Jean Charest will announce the details of a major power deal with Hydro-Quebec this morning.
There are still no official details on the agreement, although The Canadian Press is reporting Quebec is about to buy a majority stake in NB Power.
The memorandum of understanding, if agreed to, would see Hydro-Quebec shell out just under $5 billion in cash - an amount equal to NB Power's debt - while a lower rate structure for electricity would see savings for New Brunswickers of approximately $5 billion, according to The Canadian Press.
"There is still a lot of talk around the discussions we've had with Hydro-Quebec and NB Power and the province of New Brunswick and the province of Quebec," said Graham on Wednesday after the annual Order of New Brunswick ceremony in Fredericton.
The premier has said any agreement would have to address several demands, such as lowering power rates for New Brunswickers, eliminating the utility's $4.7-billion debt, and promoting his government's vision of making New Brunswick a conduit for neighbouring provinces to export their energy to the northeastern United States.
The media conference is scheduled for 11 a.m. at Government House. Hydro-Quebec CEO Thierry Vandal and NB Power CEO David Hay will take part in the announcement.
Meanwhile, the premiers of Nova Scotia and Newfoundland and the union representing NB Power workers are all sending out warning signals about the deal.
Ross Galbraith, business manager for the International Brotherhood of Electrical Workers Local 37, which represents 2,200 of NB Power's 2,600 employees, said Wednesday he's concerned about how any deal with Hydro-Quebec will affect workers here.
"I think we should be involved in any discussions," he told The Daily Gleaner. "We would like a seat at the table.
"It is pretty clear that discussions are occurring at high levels."
Galbraith said NB Power workers have good paying jobs that are important to all parts of the province.
He said he's concerned how a deal will affect those jobs, pensions and benefits, and terms and conditions of employment.
"It has all been speculation so far.''
He said Graham has referred to a memo of understanding being worked on. There would be a lot of work to do after such a memo, said Galbraith.
He said the last time a provincial utility changed hands was in the mid-1990s when Nova Scotia sold its power company to Emira.
"There were some (work force) reductions," said Galbraith. "They have had a reduction of reliability in that province.
"When we have severe weather, we hear news reports of the power being out in Nova Scotia more frequently than it is in this province."
Nova Scotia Premier Darrell Dexter issued a statement Wednesday, saying he's concerned that a deal to sell NB Power would harm Maritime co-operation.
"There is a difference between promoting Maritime interests and selling Maritime interests," Dexter said.
"Obviously, anything that removes anything as major as the ability to co-operate on energy policy from the equation should be a concern to everybody in this region.''
The Nova Scotia premier said he planned to talk to the premier of Quebec about it.
Newfoundland Premier Danny Williams on Wednesday released a letter responding to a letter Graham had sent him Tuesday about the deal.
"I am disappointed that our province was unaware of the depth of your negotiations with Hydro-Quebec given that sometime ago our energy corporation, Nalcor Energy, commenced good faith discussions with New Brunswick Power on potential components related to the development of the Lower Churchill," stated Williams.
He reminded Graham of Newfoundland's long grievance with Quebec over development of the Upper Churchill hydroelectric project.
Williams has vowed to go to court or to the federal competition bureau to try to block any deal that gives control of NB Power to Hydro-Quebec.
"I caution you based on our experience with Hydro-Quebec that a short-term opportunity can turn into a long-term loss of significant magnitude as they will most definitely find ways to recoup their investment and more from New Brunswickers who no longer control their energy destiny," said Williams.
"I have great fears and reservations about the stranglehold that Hydro-Quebec could put in place over the Atlantic region and I hope that you share this concern given your extensive statements on your desire to see your province as an energy hub.''
More City & Region
Search Articles
More CE Network Sites & Partners:
Comments (41)
All comments are subject to the site Terms of Use. For a full commenting tutorial click here.
Our editorial team relies on filtering technology and our visitor community to identify inappropriate comments. In the event that a site user has submitted offensive content that has evaded our filter, please select the option to Flag As Inappropriate presented within the comment. Thank you for helping to keep this site clean.
In politics, you have to dance with the one who brung ya. I guess we all know now who brought Shawn Graham to the dance.
Well played Mr. Irving.
I'm heading west.
This is a great day for New Brunswickers! Too bad there are some out there who would rather take advantage of us than to just say good job neighbor.
Just become some shady guy dressed in a trench coat standing in a dark alley offers to bail you out, doesn't meant it's a deal of a lifetime.