Muskrat Falls could benefit Nova Scotia: AIMS
Posted Oct 9, 2012 10:47:37 AM.
This article is more than 5 years old.
A new look at the deal between Nova Scotia’s Emera and Newfoundland’s Nalcor says our province could win with the Muskrat Falls deal.
The Atlantic Institute For Market Studies released the report Tuesday suggesting that the deal could be a good one for the Province.
The two utilities are looking at joining forces on an agreement that would see Emera build an undersea link between Nova Scotia and Labrador at an estimated cost of 1.2 billion dollars, in exchange for access to the power source for 35 years.
The report’s author Gordon Weil says the Emera has to move away from coal power, and, because of a lack of generation capacity within the province, must look to projects like Muskrat falls.
As for the risk involved in the project, Weil is confident that because of regulatory oversight by the Utilities and Review Board in Nova Scotia the risk to the ratepayer is minimized.
Weil believed the biggest risk involved in the project is being shouldered by Newfoundland and its government-owned utility.
Weil says there are still many unknowns with the project including the final costs associated and how much money the Federal Government will commit to the project.
Weil says it remains to be seen how much risk the Federal Government is willing to take with regards to the project.
Weil says if the link is built, it would connect Nova Scotia to Quebec, which in turn would open access to more cheap power in the future.
