Guest Post by PlanetNL
PlanetNL3: New Nalcor PPA Information Confirms Massive Revenue Problems
In PlanetNL2, Nalcor’s 50-year Dividends forecast was assessed
along with the assumed costs of the 50-year Muskrat Power Purchase Agreement
(PPA). At the time, a revised Nalcor PPA
cost forecast was not available, therefore some general guesstimates were made
in the absence of specific numbers. The
preliminary analysis predicted huge subsidy requirements from Government to mitigate
Nalcor losses and bankruptcy.
On October 3, 2017 Nalcor responded to a citizen’s Request
For Information to issue the up-to-date forecast of PPA costs. A full analysis is presented here using
Nalcor’s own exact PPA and Dividend numbers, in combination with the Premier’s
expressed 17 c/KWh rate cap, and the PlanetNL prediction that energy sales will
fall by 30%. The results are indeed as frightful
as feared: Government debt is going to rapidly mount and crush program
spending.
.….
