Tuesday’s papers will undoubtedly be picking up on this CP story in which the topic of discussion flowing from the New England Governors and Eastern Premiers was the delay in exporting long promised Canadian hydroelectric power to the Eastern seaboard of the United States.
As the Governor of Connecticut put it, we’re apparently running out of time…
Connecticut Gov. Dannel Malloy said pressure is building in the United States to satisfy renewable energy needs locally rather than wait for Canadian sources of hydroelectricity.
“We have built a substantial desire amongst investors in our state to develop alternative energy — non-Canadian — because of the lack of direct discussion and belief that the product is going to be delivered in a timely fashion,” said Malloy.
He said the lack of direct discussion about hydroelectricity with Canadian officials in general is “troubling.”
Malloy said he believed importing Canadian hydroelectricity makes sense, but it has to be timely. “You’ve got to begin recognizing that time is running out and that you haven’t invited all of the players to the table,” he said.
(Source: Winnipeg Free Press)
Before local reporters stampede to the “logical” conclusion that we better hurry and get Muskrat Falls power through Labrador, under the Strait of Belle Isle, across the island of Newfoundland, under the Cabot Strait, through a total of three provinces and at least three states to Connecticut before time runs out, they might want to check one small fact – the price of power in Connecticut. It’s currently retailing at between $0.11051 per kWh and $0.11568 per kWh.*
The wholesale cost of electricity generated from Muskrat Falls, if everything goes to plan, will be between $0.147 and $0.165 per kWh according to Kathy Dunderdale.
Assuming transmission is perfectly efficient and costs zero, that’s still about a 40% gap between what Nalcor and Emera will be charging Connecticut utilities wholesale, and what consumers in Connecticut are currently paying retail.
Newfoundlanders and Labradorians, who have no competitive electricity market, may be willing to accept a 40% (or much higher) leap in their power bills to honour Danny Williams’ legacy, but I somehow doubt the good folks of Connecticut, whose market is competitive, feel similarly inclined.
*note – one discount provider purports to offer electricity at $0.08999 per kWh in Connecticut
