Guest Post by PlanetNL
PlanetNL37: Market
Valuations for Gull Island and Churchill Falls
Plus The Atlantic Loop and
A Curious Re-Analysis of Muskrat Falls
PlanetNL36 provided an
analysis of the fair market value of Muskrat Falls based on prevailing
wholesale electricity rates. The analysis concluded that the project
would be completely incapable of generating any net earnings to put toward
return on debt or equity. Worse again, like a true boondoggle it could continue
losing money after it is put into operations. The Muskrat project
should never have made it beyond round one of screening alternatives, let alone
been sanctioned and built. That Nalcor and Government sanctioned a
project that forced ratepayers to pay ten times greater than market price, and
with cost overruns more than twenty times market price, is an obscenity.
The same methodology for
economic worthiness is used to consider the market value of the potential Gull
Island project and the Atlantic Loop. In addition, it will be
used to put an estimate on the 2041 market value of Churchill
Falls. Plus, one final look at Muskrat will consider whether the
project in a lesser form might have been more viable.
To better understand the methodology, be sure to read PlanetNL36 first.
