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Thursday, November 17, 2016

November 17, 2016

 

For Immediate Release

 

Does Liberal Government Agree with Nalcor's Revenue Projections on Revenues from Excess Power at Muskrat Falls?

 

Keith Hutchings, Finance Critic for the Official Opposition, wants to know whether revenue from Muskrat Falls surplus power sales will be used to lower domestic electricity rates, as this option was always part of the original sanctioned project to mitigate domestic rates if required.

 

“The plan for Muskrat Falls always included that the sale of surplus energy would provide additional revenue,” said Hutchings. “Information provided to me by the Minister of Natural Resources on November 14 confirms that this revenue from surplus energy sales has not been factored into the estimated domestic electricity rates, projected to be 21.4 cents per kilowatt in 2021.‎

 

“Information from Nalcor clearly projects ‎revenues for sales of excess energy beginning in 2020 of $158 million and collective revenues up to 2040 of $3.5 billion.

 

“Why isn’t the government giving the people of Newfoundland and Labrador a true picture of what domestic electricity rates will be once Muskrat Falls is up and running? The mitigating mechanism exists if government wants domestic rates to be reduced, and they should inform the people of the province today,” said Hutchings

 

“Why is the Ball government making people believe their rates will be 21.4 cents – higher than they will be if current mitigating revenues, ‎projected by the current executive of Nalcor, are used?

 

“Both our Party and the Liberals have said that the revenue from the sale of surplus Muskrat Falls power would be used to lower electricity rates for consumers in this province. In fact, we have stated clearly that the revenue we get from selling surplus power would be used to lower the rates our people pay for electricity.

 

“If the Minister factored that revenue into the estimated rates, those rates would be lower than the government’s number of 21.4 cents. So why isn’t the government factoring in those reductions? Why is the government using higher numbers instead of the true numbers?

 

“Does it really intend to use that revenue to lower rates? Or is it trying to make people believe their electricity rates will be higher than they will actually be, to continue casting Muskrat Falls as a negative project even though a recent decision by the federal government was to commit a further loan guarantee for the project?” said Hutchings.

 

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Media Contact: Heather MacLean, Director of Communications, Office of the Official Opposition

 

(709) 729 6105, heathermaclean@gov.nl.ca

 

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