PUB REJECTS ROLE FOR COALITION IN RATE MITIGATION ISSUE

Guest Post By Muskrat Falls Concerned Citizens Coalition

When we applied for standing at the PUB hearing on rate mitigation we expected that the Board would welcome a broader spectrum of views than other intervenors could offer. We were surprised and disappointed to be turned down when the Muskrat Falls Concerned Citizens’ Coalition (MFCCC) application was rejected. The Board’s response of March 26, 2019 reads as follows:

PREMIER'S STATEMENTS FALL SHORT SAYS COALITION

The Muskrat Falls Concerned Citizens’ Coalition, headed by David Vardy, Ron Penney and Des Sullivan (the latter also hosts this Blog) wrote the Premier on September 3, 2018 seeking specific commitments and clarity following his statements to the effect that ratepayers would not be expected to bear the costs of the Muskrat Falls project and offered to reinstate the authority of the PUB to set rates.

Following receipt of the letter, the Premier made a further statement on September 6 which fell far short of his earlier commitments. This is the text of the Coalition's response to the Premier's latest comments. This post also provides a link to the full text of the letter sent to the Premier.

PREMIER SHOULD SEIZE ON BETTER SOLUTION FOR POWER RATES

Guest Post by David Vardy
Premier Dwight Ball said this week that power rates will not be allowed to double. This statement is an important step toward a better solution. It recognizes that the take-or-pay power purchase agreement (PPA) is not a workable solution to the question as to who will pay for Muskrat Falls. The PPA places the burden on ratepayers which is unfair because ratepayers did not ask for Muskrat Falls. It was imposed by an overbearing government, supported by a relatively small group of people who stood to benefit.

The government proposes that ratepayers bear roughly half the cost and that taxpayers pay the rest, citing 2021 rates in the Maritimes at 18 cents per kWh, compared with 12 cents on the Island. Such high power rates, even when reduced from 23 cents to 18 cents per kWh, would still be unaffordable for low income people. They represent an increase of 50%.