VOCM News has learned that Newfoundland and Labrador is in the process of finalizing an agreement with Ottawa that will offset some of the costs of the Muskrat Falls hydroelectric project and help mitigate major electricity rate increases.
Sources indicate that the agreement—which is worth billions of dollars—could see a combination of cash investment, refinancing, as well as Ottawa purchasing an equity stake of Muskrat Falls. Newfoundland and Labrador is expected to remain sole owner of the hydroelectric project.
(Inside the Muskrat Falls Powerhouse looking at installation of turbine and generator units. Provided by Nalcor.)
Muskrat Falls is scheduled to come online later this year which would trigger significant increases in power rates as residents shoulder the burden of the project’s ballooned costs. Since its inception, the project’s price tag has more than doubled from $6.2-billion to around $13-billion following years of delays and significant overruns.
This agreement will be a major step to offset those costs and stave off potentially severe increases to power rates.
This week, Premier Andrew Furey met with Deputy Prime Minister Christia Freeland and Minister Dominic LeBlanc to discuss energy issues, such as affordable electricity rates. Furey hinted that an agreement was coming “very soon.”
It’s anticipated that Premier Andrew Furey and Prime Minister Justin Trudeau will make the announcement Wednesday in St. John’s once the agreement is finalized. The two are scheduled to address media today at 12:30 p.m.
VOCM News will have the full details as they become available.
