(Saint John) A vote in the Newfoundland and Labrador House of Assembly on Thursday evening concluded with the decision to move forward with a proposed energy agreement with Quebec, presented as a turning point for the heavily indebted province.
Posted at 9:16 p.m.
Sarah Smellie
The Canadian Press
Members of the Progressive Conservative opposition left the Legislative Assembly in protest, without voting. The party had repeatedly requested that the interim agreement be revised before a decision was made, but their requests were rejected.
“People are asking for more than just the rhetoric that this deal changes everything,” Conservative leader Tony Wakeham said before his 13 party colleagues stood up and left the room.
Meanwhile, Prime Minister Andrew Furey received a standing ovation from his caucus as he delivered a speech before the vote.
“We have waited more than 50 years,” he told the House of Assembly. Our position has never been stronger. We know it. Quebec knows it. »
The Liberal government opened the legislature on Monday for four days of debate on the memorandum of understanding unveiled on December 12 between Hydro-Québec and Hydro Newfoundland and Labrador.
The draft agreement promises to pay about $227 billion to the provincial treasury, much of which will come from new rates Hydro-Quebec will pay for electricity from the Churchill Falls power station over the next five decades.
The agreement in principle not only promises new revenues, it promises to put an end to the bitterness and the feeling of injustice stemming from a 1969 contract which strongly favored Quebec. Under the old agreement, Hydro-Québec purchased approximately 15% of its electricity from the Churchill Falls power station at prices well below market value.
In the new scenario, Hydro-Québec will pay approximately 30 times more for electricity, which will bring Newfoundland and Labrador an average of 1 billion per year until 2041, and 4 billion per year after 2056.
-Hydro-Québec will also pay Hydro Newfoundland and Labrador 3.5 billion to obtain the right to co-develop two other energy projects on the Churchill River. Hydro Newfoundland and Labrador will be the majority owner of these projects, and Hydro-Québec will absorb any cost overruns.
Hydro Newfoundland and Labrador keeps more than a third of the $3.5 billion, whether the projects come to fruition or not.
Newfoundland and Labrador’s total budget this year is about $10.4 billion, and the province has a net debt of about $17.7 billion.
Hydro Newfoundland and Labrador CEO Jennifer Williams received a standing ovation after reading a long list of benefits offered in the deal.
“Fairness. Which did not exist in the original contract, she argued. We are regaining control of this river. And it’s the best deal. »
The provincial New Democrats gave their support to the agreement on Thursday, alongside the province’s two independents. They made the decision after the Liberals announced that an independent panel led by the province’s consumer advocate will review the MOU and subsequent negotiations.
The Progressive Conservatives repeatedly requested throughout the debate that the vote be postponed until that review was completed. The party holds 14 of the 40 seats in the Legislative Assembly.
Thursday’s vote authorizes Hydro Newfoundland and Labrador to continue negotiating final, binding agreements with Hydro-Quebec, which are expected to be concluded in 2026.
The Churchill Falls plant has a generating capacity of about 5,400 megawatts and produces about 34 billion kilowatt hours per year, about enough to power Denmark, according to the U.S. Energy Information Administration .
