According to the memorandum of understanding, Hydro-Quebec would buy the assets for $4.75 billion – an amount equivalent to NB Power’s debt – giving Quebec greater capacity to export power to the United States.
Those assets include transmission lines, offices and most generation facilities including the Point Lepreau nuclear power plant.
“This agreement … will also provide Quebec with a strategic geographic position with regards to the markets of Atlantic Canada and New England,” Charest said.
“All Quebecers will benefit from this agreement.”
The premiers of Nova Scotia and Newfoundland and Labrador have warned the deal would give Hydro-Quebec a monopoly that could hinder other power development in the region.
But Graham says there will be opportunity for public debate before the closing date of the deal at the end of March 2010.
Still, he lauded the benefits it would bring to his province.
“The elimination of NB Power’s massive debt will help us attain self-sufficiency and relieve our children and grandchildren of this burden,” he said.
“Homeowners will see rates much lower than under the status quo, and we will now share Quebec’s competitive industrial rates.”
New Brunswick would continue to operate fossil fuel plants at Coleson Cove and Belledune, but phase out the facility at Dalhousie.
Residential power rates in New Brunswick would be frozen for five years, while industrial rates would be reduced to match those in Quebec – a total saving of about $5 billion.
NB Power was created by New Brunswick’s legislature in 1920.
To get elected many premiers make promsies they next do not keep… in BC, Ontario, Quebec, Alberta etc.,
Williams lashes out at Quebec-NB power deal CBC.ca - Newfoundland and Labrador Premier Danny Williams spoke out in St. John’s Thursday against a proposed deal to sell the majority of New Brunswick’s power assets to Quebec.
Williams lashes out at Quebec-N.B. power deal Newfoundland and Labrador Premier Danny Williams spoke out in St. John’s Thursday against a proposed deal to sell the majority of New Brunswick’s power assets to Quebec.Williams said if the deal goes through, it will be bad for Newfoundland and Labrador, the Maritime provinces and Ontario. “If [Quebec also] acquires P.E.I. and Nova Scotia [power], we will find ourselves in a situation where one province will have energy control of the entire Maritime provinces,” said Williams. “It will be attempting to strand Newfoundland and Labrador. So good, cheap, competitively priced energy, can’t be offered to that whole region.
Quebec-NB power deal a ‘complete capitulation,’ Williams says St. John’s Telegram