Quebec likes power deal with New Brunswick
Published Tuesday November 10th, 2009
The proposed deal to sell NB Power to Hydro-Quebec for nearly $10 billion is seen in Quebec as a win-win for both provinces, says Montreal Gazette business reporter Lynn Moore.
"The perception is that it is a good deal for Quebec and a good deal for New Brunswick because we hear that your utility is very badly managed and how on Earth did it acquire such a huge debt?" she told The Daily Gleaner in a recent interview.
New Brunswick Premier Shawn Graham and Quebec Premier Jean Charest signed a memorandum of understanding two weeks ago to sell most of the assets of NB Power to Hydro-Quebec for $4.75 billion. That would wipe out NB Power's debt.
The deal also includes $5 billion in rate relief.
Moore said the deal is seen as a good step towards developing another energy hub for Quebec.
"It is widely seen as positive news," she said. "It is widely seen as an accomplishment for Hydro-Quebec.
"Quebecers tend to be proud of Hydro-Quebec, when they are not attacking it for damming rivers."
People in Quebec are aware there's a lot of debate in New Brunswick about the deal, said Moore.
"We are aware that it is a hot political potato," she said.
Quebec also knows that Newfoundland opposes the deal, she said.
Moore said the perception in Quebec is that the memorandum of understanding means there's still room for negotiation on both sides before the final deal is signed.
When it comes to energy sovereignty, she said, it's also known that New Brunswick regulators here will still have a say in how the utility is run, she said.
The Daily Gleaner requested interviews with Quebec Premier Jean Charest or Quebec Natural Resources Minister Nathalie Normandeau about the power deal but that telephone call wasn't returned.
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(And it's not like Hydro Quebec is debt free.)
As for NB Power being mismanaged, yes, if a private company operated the way NB Power does, the top managers would have been fired years ago or the business would sink.
Sort of like how my 3 year old has a say in what I'm going to buy for groceries?
If New Brunswick regulators know how to run the utility, NB would not have been in this mess. Having said that if Hydro Quebec obeys the NB regulators, how would it make any profit and recoup its investment?
If NB Power was able to get inexpensive hydro power from Newfoundland, it would also have been in a good financial situation.
Now there's a headline nobody expected. What a great news scoop!!
In protest he is refusing to pay his power bill to NB Power (a crown corporation for now) until the value of it is beyond the $1000 he says he deserves.
In this way he is able to protest a rediculous provincial policy that makes no sense because NB Power has a no-disconnect policy in the winter.
I wonder how long will it would take someone like this disabled person to freeze to death if NB Power was no longer controlled by the provincial government and its policies were being set in Montreal?
Something to consider.