VARDY UPSET PUB YIELDS TO NALCOR OVER DARKNL REVIEW

Guest Post Written by David Vardy

PUB INVESTIGATION INTO SUPPLY ISSUES AND POWER OUTAGES

Dark NL sparked an investigation by the PUB into the reliability of our power system, an investigation which is going into its fourth year. It has received little media coverage, despite its great importance.

On January 20, 2017 the Public Utilities Board (PUB) issued an Order, P.U. 2(2017), striking down expert evidence filed by the Grand River Keeper Labrador (GRK), a registered intervenor. The Order is part of the PUB’s investigation into supply issues and power outages which they announced on January 17, 2014. The investigation covers matters relating to the reliability and availability of power both before and after interconnection with Muskrat Falls and was prompted by a number of power outages which took place in 2013 and early 2014. The Board’s Order has the effect of removing expert evidence relating to two major risks to the power system from further consideration during the investigation into the supply of power. The purpose of this post is to recommend solutions to this problem.

STAN MARSHALL DESERVES A GOOD TONGUE-LASHING

It is not difficult to figure out why Nalcor CEO Stan Marshall wasn’t invited by the Premier to sit in on the marathon session with aboriginal leaders. Evidently he would not have been helpful. Already he is dissing the importance of the methylmercury issue — mere days after the protesters broke off their sit-in.

At the beginning of his tenure, Marshall appeared in front of the media to confirm that the Muskrat Falls project is a “boondoggle” and to say that he is trying to mitigate the impact of 21.4 cent KWh power on ratepayers. Otherwise, he has largely been mute.

Whether it was the protesters or something else that stirred him to consciousness is uncertain.

The Nalcor CEO used his two-day media blitz last week to largely dismiss the deal the politicians had constructed. He downplayed concerns about methylmercury and suggested the science would not require clearcutting and soil removal. Marshall may be right. But how is the expression of such views supposed to advance progress in establishing a relationship between the parties?

TIME FOR NALCOR TO TELL THE TRUTH TO THE PUBLIC

The recent Decision of the Quebec Superior Court rejecting Nalcor’s interpretation of the Upper Churchill Renewal Contract constitutes a very significant loss for Newfoundland and Labrador. 

The loss is felt not just because Nalcor was barred from accessing surplus energy from the Upper Churchill. It skewers the concept of water management on the Churchill River, a Plan essential to maximizing the power potential of Muskrat Falls - especially the plant's capability to meet maximum scheduled demand. Water management is pivotal to any claim to viability of the project.

The Water Management Agreement (WMA), approved by the provincial PUB, is best understood as an “energy bank”, one that makes provision for an independent coordinator to record power delivered to the Upper Churchill from Muskrat and from the Upper Churchill to Muskrat when the plant was capable of producing surplus energy. In that way the water flows are coordinated and their conversion to electricity maximized.

Water management is a perfectly sensible idea. But it can’t be implemented if the legal authority to operate it is void.

Muskrat Falls: NO POWER TO EXPORT (Part 1)

The distinctively loud and rapid sound of the gargoyle, which serves as a knocker on my front entrance, confirmed that a visit from Uncle Gnarley was imminent. I opened the door quickly and the grey bearded eminence himself entered in a flourish.  A day old newspaper covered his favourite ‘river warrior’, but could not hide its delicious aroma.  Uncle Gnarley had caught a salmon. 

Gnarley did have a sense of timing. He had been absent for several weeks and I had begun to miss the irascible old man.  Luckily, the day held no impediments and a dangerous shortage of our favourite elixir had just been remedied.

“Nav”, Uncle Gnarley barked, as he pushed the parcel towards me, “I thought I might invite myself to dinner.  I suggest you put a lid on this one, he was a real fighter”.

As Gnarley headed for the only chair that fit his broad frame, he allowed that we had some business to discuss and quickly held out a whiskey glass for an ample serving of 15 year old Macallan’s; a perfectly suitable reward for his victory on the Gander River.

“I have had a lot of time to think”, Gnarley bellowed, now anxious to share what was clearly bothering him. “I have never felt more unsettled”, he continued”.