The Lower Churchill Project

[statbass]

Here's another story I found on the VOCM website:

VOCM, Nov 7, 2012.

Numbers released by the provincial government show power rates will increase under every power option, but the increase will be the lowest and the slowest with Muskrat Falls. In a paper released yesterday, government showed what it's been saying for years -- Muskrat Falls will help stabilize electricity rates in the long-term.
Liberal Andrew Parsons says there are still some unknowns that could impact rates. He would have liked the rates and the demands linked and released together. He says we're in the middle of a PR program. Parsons says there are also questions around the impact the loan guarantee will have and until that is finalized no one really knows.

NDP Critic George Murphy expects the forecasts to be off. He believes the cost to island customers will increase if the power is not consistently used. He asks if consumers will have to pick up the tab if the island doesn't use 40 per cent of the power it is to receive from Muskrat. Demand projections are expected to be released today.

http://www.vocm.com/newsarticle.asp?...28138&latest=1

[statbass]

More Muskrat Falls info coming down the pipe, very similar to the VOCM story above but what the heck. What a busy news day today!

CBC, Nov 7, 2012

The Newfoundland and Labrador government says another document backs up its claim that Muskrat Falls is the most sensible solution for the province's long-term energy needs.

Natural Resources Minister Jerome Kennedy and Nalcor CEO Ed Martin released the discussion paper, titled Electricity Rates Forecasting, at a news conference on Tuesday.

The paper shows that forecasts under every available energy option call for power to become more expensive. [Read the full document here.]

Kennedy said the increases will be the lowest, and slowest, under Muskrat Falls, the $7.4-billion plan to tap hydroelectric power on Labrador's Churchill River, and then move much of it to Newfoundland, Nova Scotia and potentially other markets.

"It outlines our government's position that Muskrat Falls will result in lower and stabilized electricity rates compared to the isolated island option, being Holyrood," said Kennedy, referring to the oil-burning station in Conception Bay that the government wants to decommission in the coming years.

Under the forecast, the average ratepayer could expect to see energy costs climb by about 18 per cent between 2016 and 2030 if Muskrat Falls comes onstream as planned in 2017. That would amount to an an additional $38 per month.

By contrast, if Muskrat is not sanctioned and the Holyrood plant stays in service, average ratepayer costs are forecast to jump by 38 per cent over the same period. The paper says that translates into an extra monthly cost of $82.

The discussion paper was released the same day talks collapsed on holding a special Muskrat Falls debate in the house of assembly.

The Opposition parties believe the cost projections outlined in the discussion paper would be too low if overall demand for electricity does not increase as much as the government expects.

Another paper on demand is expected to be released Wednesday.

http://www.cbc.ca/news/canada/newfou...alls-1107.html

[jeddy1989]

This thing will just get pushed down the pipline now I'd say... the government is probably getting sick of all the stupid squabiling and wants to get the show on the road ... I mean prep work is already taking place

[Townie709]

Stephen Harper will be in Happy-Valley Goose Bay tomorrow to announce the federal loan guarantee for Muskrat Falls

Here's the CBC article:

Harper to announce Muskrat Falls deal in Labrador
Prime Minister Stephen Harper will be in Labrador on Friday to announce the finalization of a loan guarantee for the huge Muskrat Falls hydroelectric project, CBC News has learned.

The planned dam and power-generating station will generate electricity from the Lower Churchill Falls region, and will send power to Nova Scotia as well as Newfoundland and Labrador.

Multiple sources say the event, in the Labrador community of Happy Valley-Goose Bay, has been pulled together over the last 24 hours — a reflection of how quickly the loan negotiations have moved.

Sources told CBC News that negotiations on the loan guarantee are still happening, but progress has accelerated over the course of the week and a conclusion seems imminent.

Not only is the prime minister travelling to Goose Bay for the announcement, but sources said Newfoundland and Labrador Premier Kathy Dunderdale has made last-minute plans to go, as has Nova Scotia Premier Darrel Dexter.

Dunderdale seemed surprised earlier this afternoon when word broke of the prime minister's visit.

"Look, all I can tell you is I don't know that there's an announcement to be made in Happy-Valley Goose Bay tomorrow. I don't know that."

The federal loan guarantee is the last major piece missing in the premier's Muskrat Falls puzzle.

She has said all along that once the financing terms were in place, her cabinet would move quickly to officially sanction the project, an outcome that has seemed invetiable for quite some time.

Harper's visit also comes at a time when Peter Penashue — the lone Conservative cabinet minister in Newfoundland and Labrador — is under fire for spending thousands of dollars over the legal limit during last year's federal election.

[J_Murphy]

Originally Posted by Townie709

Stephen Harper will be in Happy-Valley Goose Bay tomorrow to announce the federal loan guarantee for Muskrat Falls

Here's the CBC article:

Awesome! one step closer. I suspect we will hear an official project sanction very soon as well.

[SignalHillHiker]

Why is he doing this now? Even the Premier sounded surprised. I never trust his motives...

[jeddy1989]

Originally Posted by Newfoundlander

Why is he doing this now? Even the Premier sounded surprised. I never trust his motives...

probably to take the heat off of the Penashue scandel (oh look at how much we are doing positively because the conservatives have a precence blah blah blah)

[statbass]

Originally Posted by jeddy1989

probably to take the heat off of the Penashue scandel (oh look at how much we are doing positively because the conservatives have a precence blah blah blah)

My thoughts exactly. To steal a quote from one of my friends, "There's too much politics in politics".

[SignalHillHiker]

Well, fine.

It's a bit of a non-scandal anyway. It's not as though I expected a rookie politician who is elevated to cabinet for reasons that have nothing to do with qualifications to get it right. He was the Conservative Party's useful idiot, I imagine.

But, if it can get us going on Muskrat Falls, so be it.

[jeddy1989]

ANDDDDDDDDDDDDD she's a GO!


Full Speed Ahead for Muskrat

Newfoundkland and Labrador has what it wanted: a loan guarantee for Muskrat Falls.
The federal backing is expected to save the governments of Newfoundland and Labrador and Nova Scotia more than $1 billion in borrowing costs.
The prime minister and premier are in Happy Valley-Goose Bay today.

Premier Kathy Dunderdale's government has waited for the federal support before sanctioning Muskrat Falls, which is expected to happen before the end of the year.

http://www.vocm.com/newsarticle.asp?...28769&latest=1

[jeddy1989]

Harper announces loan guarantee for Muskrat Falls project

The Muskrat Falls project cleared a major hurdle today when Prime Minister Shephen Harper announced the long-awaited federal loan guarantee for the hydroelectric project.
Harper said the project is an "unprecedented opportunity" at a news conference in Happy Valley-Goose Bay.
The federal loan guarantee will lower the costs of borrowing for the proponents, with projected savings of over a billion dollars for ratepayers in Newfoundland and Labrador and Nova Scotia.
In a news release, Harper states that the governments of Canada, Newfoundland and Labrador, and Nova Scotia have agreed on the terms for a federal loan guarantee for the Lower Churchill projects.
He said hese projects will contribute to jobs, growth and long-term prosperity in Newfoundland and Labrador and Nova Scotia.
Harper was accompanied by National Defence Minister Peter MacKay; Peter Penashue, Minister of Intergovernmental Affairs and President of the Queen’s Privy Council for Canada; Premier Kathy Dunderdale; and Nova Scotia Premier Darrell Dexter.
“This loan guarantee will not only create jobs and economic growth for people in Atlantic Canada, but will also provide a stable and sustainable source of energy for the region,” Harper said. “The Lower Churchill projects will receive the support they need to move forward, which will have significant economic benefits as well as environmental gains due to a substantial reduction in greenhouse gas emissions.”
The federal government is prepared to guarantee project debt to help the proponents finance the following projects: the Muskrat Falls Hydroelectric Generation Station and three transmission projects (Labrador Transmission Interconnection, the Labrador-Island Transmission Link and the Maritime Transmission Link).
The Muskrat Falls facility is expected to generate 4.9 million megawatt-hours (MWh) annually. In addition to reducing up to 4.5 million tonnes of greenhouse gas emissions annually, which according to estimates is the equivalent of taking 3.2 million cars off the road, the Lower Churchill projects will result in an average of 1,500 jobs during each year of construction with peak employment during construction of approximately 3,100 people. They will also generate $1.9 billion in earnings for the people of Newfoundland and Labrador.
Harper and the two premiers signed the term sheet today.
The term sheet sets out the terms and conditions of the loan guarantee which will be formalized in detailed agreements. With the term sheet signed, the projects’ proponents will now be in a position to engage capital markets to plan and arrange the debt financing for the projects.
The agreement means Ottawa will guarantee project-related debt of up to $6.3 billion for the Lower Churchill River projects. The loan will be guaranteed for a period of 35 to 40 years from the time project debt is raised, which will apply to the construction and operating phases of the projects.

http://www.thetelegram.com/News/Loca...alls-project/1

[SignalHillHiker]

Fantastic! Cheers, everyone!

And Quebec... *mumble mumble*

[Townie709]

Great news! Now let's get this show on the road before the next election

[Architype]

Quebec warns it will fight federal funding of Newfoundland energy project

The Quebec government warns it will fight tooth and nail against the federal government’s plan to subsidize an Atlantic link to transport electricity from Newfoundland to Nova Scotia.

Prime Minister Stephen Harper was expected to unveil a financial package to subsidize the expected $7.4-billion project that would allow Newfoundland and Labrador to bypass Quebec transmission lines. Rather, the province would funnel the electricity produced at Muskrat Falls through to Cape Breton for export to the United States.

Continue reading and being disgusted: http://www.theglobeandmail.com/news/...rticle5842575/

[SignalHillHiker]

Let'em ****ing separate, and then we can have Churchill Falls too.

[someone123]

It sounds like Quebec does not have a real legal argument, since they didn't mention anything in particular. The federal government doesn't need their approval to spend its own money.

[Townie709]

Oh god.. Yet another fine example of Quebec's whiny complaining attitude. Heaven forbid the federal government spend the portion of money that does not go to satisfy Quebec on the well being of another province.

And to think! They didn't even consult Quebec?!

Honestly. Quebec really needs to separate, or be told to shut up and be treated the same as all other tax paying, equal citizens of Canada. They are not superior, no matter how much they would like to believe it!

[rthomasd]

Originally Posted by someone123

It sounds like Quebec does not have a real legal argument, since they didn't mention anything in particular. The federal government doesn't need their approval to spend its own money.

Key point - there's NO federal money in this project, the feds are providing a loan guarantee not a loan. It will not cost Canada anything.

[someone123]

Originally Posted by rthomasd

Key point - there's NO federal money in this project, the feds are providing a loan guarantee not a loan. It will not cost Canada anything.

This isn't exactly correct. The federal government is assuming some risk and there is a chance that it will be on the hook to pay for what it has guaranteed. If there were no risk there'd be no discount associated with the guarantee and it would not be needed. I don't know about Canada but there are multiple examples of US states defaulting on their debts and it can certainly happen with small provinces taking on big projects like this.

[Architype]

Harper said he expects there to be zero cost to Canadian taxpayers. However, of course there is always a risk. I generally expect just about everything to go over budget these days, and I don't know how or if that would affect the risk.