Premier promotes power partnership
Published Wednesday October 28th, 2009
Utilities | Talks on with Hydro-Quebec, memorandum of understanding expected
Premier Shawn Graham says New Brunswick is making progress in its talks with Quebec about the future of NB Power.
But he didn't release more details about those talks Tuesday and he's asking the public not to jump to conclusions about a potential deal.
"What I am asking New Brunswickers today is before any preconceived decisions are made on their own, let us have an opportunity to explain to all New Brunswickers what a potential partnership could offer and also at the same time what the benefits are for New Brunswickers in the long term," said Graham.
"We are at a critical point in the discussion process," said the premier. "They have been progressing well.''
News of the talks broke last week although the Liberals announced in June that they were looking at ways to co-operate more with Hydro-Quebec.
Graham said there would be no final deal announced if the talks are successful.
"What we are looking at is a memorandum of understanding of where we can move forward from the discussions that have taken place to date.''
The premier wouldn't say when that might happen.
"There is all kinds of speculation out there," said Graham. "We are going to allow the process to unfold as it should."
He said the talks with Quebec are about getting lower power rates for New Brunswickers, creating jobs and dealing with NB Power's crippling $4.7-billion debt.
The premier also said the province wants to move ahead on making New Brunswick an energy hub.
"We've always stated that our geography is our greatest asset. Last year, we took a clear position as a government that we want to maximize our geographic location."
He promised there would be opportunities for New Brunswickers to discuss any agreement and be engaged in the process once the talks with Quebec are complete.
An article in The Globe and Mail newspaper Saturday reported that the potential deal is worth $10 billion and would see Hydro-Quebec take over key assets of NB Power.
According to the Globe, the deal would see Hydro-Quebec take over NB Power's $4.7-billion debt and provide $5 billion in savings to ratepayers.
In return, Hydro-Quebec would get greater access to the New Brunswick market and a transmission corridor to U.S. markets, stated the Globe.
Newfoundland Premier Danny Williams has already condemned the talks and threatened to take any deal to the federal competition bureau for review.
Graham released a letter he sent to Williams on Tuesday, saying New Brunswick was trying to grow its economy and move off the federal equalization program as Newfoundland has done with oil and gas developments.
"I was, therefore, shocked and saddened by statements you were reported to have made which suggested Newfoundland and Labrador would hinder the economic progress of New Brunswick," wrote Graham to Williams.
He promised that New Brunswick would remain open to Newfoundland electricity passing through the province to the U.S. market.
"Nor will we, in any way, surrender our sovereignty over energy policy," said Graham.
Meanwhile, Official Opposition Leader David Alward urged Graham to recall the legislature immediately and set up a special bipartisan committee to review the deal with Quebec.
The committee should also be able to hear opinions from energy experts on any agreement and lead an informed debate, he said.
"What New Brunswickers don't need is this government to come out immediately with a huge public relations exercise," said Alward.
Graham said he spoke to Alward on Sunday about the talks and that there is a role the official Opposition can play in the process.
The premier said he has no plans to call the legislature back into session before the scheduled Nov. 17 date.
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Please please no!
Nfld taxpayers reap the benefits of corporate taxes placed on Fortis which earns a percentage of its profit from the guaranteed profit margin of Maritime Electric Co. as established under PEI regulations.
Islanders pay among the highest electrical rates in North America.
Again, so what if a utility in one province owns a utility in another? It already is the case with Fortis in Nfld owning Maritime Electric in PEI. It already is the case with Emera in Nova Scotia owning Bangor Hydro in Maine. And Fortis also owns Canadian Niagara Power and Cornwall Electric in Ontario.