Quote:
Originally Posted by SignalHillHiker
B'ys... you know, I don't think there's much going on up in Labrador these days. ![Wink](images/smilies/wink.gif) Sure it's never in the news.
![Ha ha](images/smilies/haha.gif) Congratulations, all! I hope these announcements all pile in now that the Lower Churchill is approved.
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The more I read and think about Lower Churchill/Muskrat Falls, the more I just can't support it.
The government has spent $1.1 billion on the project between this year and last year and have yet to provide any evidence of an idea about how they will recover that investment, aside from allowing Nalcor to reap a 10% profit margin on investment via utility bills. We're essentially giving 20% of the power to be generated to Nova Scotia in order to gain access to markets that have not shown any desire to purchase the power. The U.S. is aiming for energy self-sufficiency by 2020 thanks to enormous shale gas deposits. If they do decide to buy from Canada, Quebec is sitting on an enormous power surplus that we are subsidizing, which allows Quebec to undercut Muskrat power at will.
What it amounts to is Newfoundland using just 40% of the product and right now, we're on the hook for 100% of the cost with no hint of a buyer for the remaining 40% of the power. Additionally, legislation has been passed which prevents any sort of power generation on the island to compete with Nalcor and Muskrat. We're locked into a very short-sighted plan for a very long time.
I seriously fear that we're building ourselves into a coffin. We will likely see skyrocketing electricity rates that will prevent the development of large scale industry and make the island, and our cities/towns, unappealing for the development of high-tech industry.
Now, I concede that if we were to stop constrution of such a large project we could devastate our economy, seriously slowing GDP growth and halting job growth prospects. However, I fear that in the long run we could be headed down this road anyway.