Guest Post by PlanetNL
PlanetNL.4 - Mothball Muskrat Now
Previous PlanetNL instalments have detailed how the uneconomic
Muskrat project threatens to destroy NL Hydro and ratepayers or, if the subsidy
route is chosen, Government and taxpayers. The painful third alternative
is to choose to stop the project and have the Premier call on Ottawa to act
fully and promptly on the murky Federal Loan Guarantees of $7.9B.
Even with the federally guaranteed debt removed, serious
issues remain. Ratepayers still face large rate increases and the
Provincial Government must record a total loss of equity. Emera would
suffer contractual losses and demand compensation. Ottawa would be
divided on whether to act as many other provinces will not support the
bailout. A substantial and raucous debate is sure to erupt whenever
Ottawa publicly considers this request.
…………………….
…………………….
