FOR IMMEDIATE RELEASE
October 9, 2012
AIMS-sponsored Report Finds Muskrat Falls project “desirable”, but with risks
Halifax, NS- The Muskrat Falls project, proposed by Nalcor and Emera with the support of provincial governments, “is highly desirable in terms of energy policy,” according to a new report released by the Atlantic Institute for Market Studies (AIMS).
The report, The Muskrat Falls Hydro Project: Opportunities and Risks, written by energy consultant Gordon L. Weil, finds that although the project would be significant for the province of Newfoundland and Labrador, there are substantial risks.
“Muskrat Falls and the associated transmission links would create for the first time a true energy grid through Atlantic Canada. That is a huge opportunity but does not come without risks. Dr. Weil does an excellent job of giving a balanced perspective on both the risks and the opportunity,” says AIMS President and CEO Charles Cirtwill.
Weil suggests a series of measures that could be carried out that would reduce the chances of the project becoming a financial burden on the province. In evaluating the project, he suggests that Newfoundland and Labrador conduct a regulatory-type review, even if it is not currently required by law.
An in-depth review should include careful scrutiny of the cost and a more comprehensive analysis of the impact on provincial customers and the value of power sales outside of Newfoundland and Labrador. Such a review would go beyond the limited report requested previously from the province’s Board of Commissioners of Public Utilities (NLPUB).
For Nova Scotia, Weil concludes that the project would have an important but more limited effect and must undergo regulatory review. Not only would the project assist the province in dealing with air quality, but it would also give utilities access to needed power supply and improved interconnections with Atlantic Canada.
To read the full commentary, click here
For more information please contact:
Atlantic Institute for Market Studies
(207) 833-6891 or cellphone (207)841-0334