We should be worried that GNL will double down as big problems persist and costs continue to rise on Soldier’s Pond and the LIL, all the way to Muskrat Falls. It seems destined to be a victim of the "sunk cost" fallacy which describes a tendency to sink more money into a scheme in which a large investment of time and money has already been made, regardless of whether the costs outweigh any benefits.
Last week’s post described
the chief conclusion of the second Haldar and Associates report that the Labrador
Island Link transmission line (LIL) is under-designed and may need salvaging as
often as every six years.
The Report was ultimately conducted for Public Utilities Board which wanted more data to help forestall a repeat of the 2014 outage known as #DarkNL.
