Nova Scotia to pay next to nothing for Muskrat Falls energy: Nalcor CEO
The CEO of Nalcor Energy says Nova Scotia’s Emera Inc. will be getting electricity for “next to nothing” when the Muskrat Falls hydroelectric project in Labrador starts producing electricity – unless the deal is changed.
Stan Marshall made the comment in an interview with The Canadian Press, saying the poor arrangement with Emera is one of the reasons the $11.4-billion Muskrat Falls project has proven to be a bad deal for Newfoundland and Labrador.
Marshall went on to suggest the project will be an economic burden for the province for at least the next four years because of the collapse of energy prices.
He says Nalcor is talking with Emera about changing the terms of existing contracts for the Maritime Link, the 170-kilometre subsea cable that will eventually carry electricity from southwestern Newfoundland to Cape Breton.
The CEO says in exchange for building the $1.6-billion transmission line, Nalcor agreed to give one-third of Muskrat Falls electricity to Emera “for 35 years, for nothing.”
Marshall was hired to take over the delayed and over-budget project in April after the Newfoundland and Labrador government determined Nalcor had not provided proper oversight.
© 2016 The Canadian Press