Provincial energy tour makes lone Cape Breton stop at MTCC
2/28/2013MEMBERTOU — Cape Bretoners got a chance to quiz Energy Minister Charlie Parker and Deputy Minister Murray Coolican on Nova Scotia’s energy plan when their provincial energy tour made a stop at the Membertou Trade and Convention Centre on Wednesday.
Parker gave a short prepared speech to the 50 people in attendance on an energy plan he says will provide Nova Scotians with lower and fairer rates than other options that were previously considered and dismissed, while Coolican talked about the Maritime Link, the $1.5-billion, 180-kilometre subsea cable from Newfoundland to Point Aconi that he said will be the main factor in making these cost savings a reality.
Paul Goldring of Whitney Pier wanted to know who will profit from the sale of any excess power that reaches Nova Scotia through the Maritime Link.
According to Parker, Emera, Nova Scotia’s private power utility, will receive 20 per cent of the power from Muskrat Falls at a fixed rate for 35 years in exchange for its investment in the project. If any extra energy is available, it will come into Nova Scotia at market rates.
“And once the transmission loop is completed (so that Quebec is included), it will give us an added advantage,” he said, “so that extra energy can also be exported to New England and New Brunswick. The advantage we have in Nova Scotia (with the Maritime Link) is our geographical location,”
A question from the floor asked who would cover the difference if the government-funded capital costs for the project come in higher than projected.
Parker replied that the Nova Scotia Utility and Review Board, which has to approve the Maritime Link project before giving it the go-ahead, looked closely at the information provided by Emera to ensure that it was accurate.
“The UARB has the full authority to call in any experts needed to make sure the information is accurate,” he said. “They have the option to reject the information altogether if it’s not accurate.
“And John Dalton, an energy expert hired by the province, has done a study of what the lowest-cost option would be for Cape Breton.”
Coolican added that, as part of the agreement, any cost overruns on the project would be borne by Nalcor Energy, the Newfoundland and Labrador Crown corporation responsible for the hydro development on the lower Churchill River.
Elaine Cotter of Sydney was interested in learning more about the jobs that will be created by the Maritime Links project, both during the construction phase and afterward.
Parker said that since Newfoundland and Labrador can’t supply all the manpower needed for its end of the construction phase of the $7.7-billion project, Cape Breton workers will be needed there as well as on the island.
Construction of the Maritime Link alone, he said, would provide 6,700 person years of employment for Nova Scotians over the life of the project.
According to figures supplied by Emera, Cape Breton work on the route for transmission lines and construction of sub-stations and a grounding station will provide work for more than 330 workers per month over the life of the project, rising to a peak of 650 workers per month in 2015.
“There will be a whole variety of jobs (for Cape Breton workers),” said Parker. “Construction will be starting this year and continuing until 2017 — subject to the UARB approving the project.”
Pat Bates of Sydney was curious as to how the Maritime Link project won out over any deal that Hydro Quebec might have offered.
“Dalton’s report investigated the Quebec costs,” said Parker, “and in his experience (a deal with Hydro Quebec) would have been more than $400,000,000 more expensive than the Maritime Link.
“But if we could get a deal as good as the Maritime Link, we would be more than happy to talk to Quebec.”
The 35-year fixed rate offered by the Maritime Link was a contributing factor, added Coolican.
“Dalton looked at the Quebec situation and there were no long-term price guarantees. It’s not something (Hydro Quebec) usually does,” he said. “And while Hydro Quebec is very active in the New England market, they don’t have an office in Halifax. But Emera had discussions with Hydro Quebec and that should come out at the hearings on May 27.”
Public hearings are set to begin at the UARB in Halifax on May 27. The travelling road show from the minister and his deputy was part of the process of getting the word out to the public and Nova Scotia businesses in advance of that.
Cape Breton was the fourth stop on the provincial energy tour, with previous stops in Bridgewater, Antigonish and Yarmouth. Parker and Coolican will be making another half-dozen stops around the province over the next few weeks to conclude the tour.
(Cape Breton Post)
