PlanetNL8: Labrador Interconnected System (LIS) Under Threat of Huge Rate Increases
The largest regulated zone in Labrador is the Labrador
Interconnected System (LIS) powered by Churchill Falls with transmission lines
running to Labrador West and East. These
are all relatively old assets that have provided exceptionally economical
service and the lowest rates in North America and possibly the entire western
world.
Government policy for this unique regulated rate zone,
however, is about to prove the old adage of having too much of a good thing
could prove to be not good for you. Low
rates have attracted new demand that will lead to expensive new transmission
line construction resulting in major rate increases for everyone in the
LIS. There’s also a long shadow cast by
Muskrat Falls as well.
Government has the authority to select a different course
but as demonstrated by Muskrat Falls, doing the right thing for ratepayers is probably
not on the agenda.
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