labradore

"We can't allow things that are inaccurate to stand." — The Word of Our Dan, February 19, 2008.

Friday, January 15, 2010

Meanwhile in Nova Scotia

Oh, look! The Premier admits that and undersea cable is a more expensive means of transmitting imaginary Lower Churchill Power.

No, not that Premier — the other one. The Chronically-Horrid reports today:

Premier Darrell Dexter said he’s not surprised Newfoundland and Labrador is looking for a cheaper option than an underwater cable connection to Nova Scotia for moving energy from Lower Churchill to market.

"The sheer economics of it are undeniable in terms of a transportation corridor for that energy," the premier said after a cabinet meeting Thursday.

[...]

While Newfoundland and Labrador’s new energy company, Nalcor Energy, is looking for a cheaper transportation route for the electricity through Quebec, it is not ruling out an undersea cable to Nova Scotia.

"We are still having significant discussions — it’s no secret — with Emera (Inc.)," said Ed Martin, Nalcor president, in a telephone interview Thursday.

[...]

An SNC-Lavalin transmission system study for the Nova Scotia government estimates the cost of connecting Newfoundland and Nova Scotia at $800 million to $1.2 billion. The estimate of connecting Nova Scotia to New England is $2 billion to $3 billion.

Now, isn't that strange... Not so very long ago, Our Dear Premier was planning to route Our Dear Infeed from Our Dear Lower Churchill through Gros Morne National Park, which he somehow imagined was a shorter, cheaper route than going around Gros Morne National Park.

And somehow, for taking the shorter route around a national park, in ODP's strange little universe, this meant that the federal government should be on the hook for some of those transmission line costs.

Not only is Our Dear Lower Churchill cost-sensitive such that a Labrador routing closer to the new Trans-Labrador Highway was ruled out — the mitigated costs of accessing the corridor were outweighed by the additional cost of materiel for the consequently longer line — they were so cost-sensitive that the federal government would be called upon to help Us go it alone by compensating Us for saving money.

Cost, obviously, is a factor.

A huge factor.

That is where the latest rounds of Holy Warfare stem from. We, that is, He, want to shift the cost-burden of transmitting Lower Churchill power to (a) Ottawa, and (b) Quebec. Without shifting those costs, on top of the cost-shift that We expect in the form of loan guarantees and whatnot for building the power plants themselves, the business case for the Lower Churchill evaporates, assuming it exist even with them.

And yet, in this incredibly cost-sensitive environment, there are still many gullible people, in Nova Scotia and elsewhere, who believe that the submarine route through that province is viable, or at least more viable than the terrestrial alternative.

Are they kidding?

After all, one of the 95 Theses that We have posted on the door of Hydro-Quebec's Montreal siège social is that Quebec is throwing obstacles in the way of Our Dear Lower Churchill.

Crazy obstacles, like... like... like... not paying to build Our transmission line across Quebec.

So just imagine the war that will ensue when We get wind of Premier Dexter's further remarks:
In talking about the connection to Newfoundland and Labrador, Mr. Dexter said Nova Scotia Power could be one of the private interests that would look at it, but it wouldn’t be provincial taxpayers.

"We’re not going to build it," he said.

Looks like Nova Scotia is not going to help Us go it alone, either. The traitors.

Labels:

8 Comments:

At 10:06 PM, January 15, 2010 , Blogger Edward Hollett said...

Look at the cost of this project compared to potential revenue.

The numbers just haven't been there to now and defiitely aren't there now and in the foreseeable future.

And that's without raising the point Tom Adams did about the repercussions from the rather cavalier way the 2005 RFP responses were rejected.

The Lower Churchill is and always will be a political prop in the drama which is local political theatre. It will be built when people stop playing politics with it.

 
At 9:44 AM, January 18, 2010 , Blogger pig said...

Perhaps Dexter's comments have something to do with the fact that Nova Scotia's energy industry is private. Emera owns NS Power so why would the province invest in something that is going to be the business of a private company? Furthermore, both Dexter and Martin confirm that other interests are interested.

Ed Hollett - do you really think electricity prices and demand aren't going to increase significantly in coming years? You actually believe that as North America weans itself off of oil demand for clean, renewable energy won't skyrocket? With that lack of savvy and foresight thank goodness incompetent Liberals aren't running the show.

 
At 12:50 PM, January 18, 2010 , Blogger WJM said...

You actually believe that as North America weans itself off of oil

And what, pray tell, is the evidence that North America is doing any such thing?

 
At 4:57 PM, January 18, 2010 , Blogger pig said...

Ever hear of the Chevy Volt or Toyota Prius? You think auto companies are voluntarily investing billions of dollars to develop new electric and fuel efficient cars just for fun?

 
At 7:31 PM, January 18, 2010 , Blogger WJM said...

Ever hear of the Chevy Volt or Toyota Prius?

Yip.

And?

How do you plan to bottle Lower Churchill electricity?

 
At 8:59 PM, January 18, 2010 , Blogger pig said...

Oh, you can't make the link? They're electric or hybrid cars aiming to use less oil thus as examples they serve as evidence that North America is trying to wean itself off of oil consumption - you asked and I answered.

Bottle Lower Churchill electricity? If you're referring to how to transport electricity from the Lower Churchill to market it might be done the same way that Upper Churchill electricity is transported to market - Quebec isn't complaining about the economics of that development. Depending on what happens at the Regie the Quebec route might very well be even more economically attractive (Ed Martin apparently thinks that HQ's transmission's arm quote of $3billion is high but still allows the project to be economically feasible). Otherwise, the undersea cable route might be more expensive but still economically feasible - especially now that Loser Graham is backpedalling on selling NB Power's transmission arm and will likely have to scuttle the terrible deal he's trying to negotiate with HQ.

 
At 10:25 PM, January 18, 2010 , Blogger WJM said...

Oh, you can't make the link? They're electric or hybrid cars aiming to use less oil thus as examples they serve as evidence that North America is trying to wean itself off of oil consumption - you asked and I answered.

That's not much in the way of evidence, I'm afraid.

Bottle Lower Churchill electricity? If you're referring to how to transport electricity from the Lower Churchill to market

You're a clever one!

it might be done the same way that Upper Churchill electricity is transported to market - Quebec isn't complaining about the economics of that development.

The so-called Upper Churchill electricity, for the most part, ends up used within Quebec. What was your point again?

Depending on what happens at the Regie the Quebec route might very well be even more economically attractive (Ed Martin apparently thinks that HQ's transmission's arm quote of $3billion is high but still allows the project to be economically feasible). Otherwise, the undersea cable route might be more expensive but still economically feasible - especially now that Loser Graham is backpedalling on selling NB Power's transmission arm

What difference does it make either way, considering that, in any event, Dannystan Hydro would be using the same regulatory mechanism to gain that access?

and will likely have to scuttle the terrible deal he's trying to negotiate with HQ.

What's "terrible"?

 
At 10:58 PM, January 20, 2010 , Blogger WJM said...

Pig, play nice or go home.

Thanks!

 

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