Newfoundland and Labrador will be paying 14.7 cents per kWh for electricity in the Muskrat Falls era—an increase of about two cents.
Rates would have soared had it not been for today’s rate mitigation agreement between Ottawa and Newfoundland and Labrador announced in St. John’s by Prime Minister Justin Trudeau and Premier Andrew Furey.
Furey called it the “day we get the Muskrat off our backs.”
The $5.2-billion deal includes a mix of new money and restructuring. The feds will make annual transfers to NL equal to Canada’s yearly net revenue from the Hibernia offshore oil project, estimated to total $3.2-billion between now and the end of Hibernia’s life.
Gov NL maintains 100% ownership of the project.
Feds will make annual transfers to NL, equal to Canada’s yearly net revenue from the Hibernia offshore oil project Net Profit Interest & Incidental NPI, estimated to total $3.2B between now and end of Hibernia’s life. @VOCMNEWS
— Ben Murphy (@VOCMBen) July 28, 2021
The late John Crosbie was instrumental in convincing the federal PC Government under Brian Mulroney Ottawa to invest in Hibernia, which at the time was floundering. It put up an 8.5 per cent equity stake at the time and has reaped billions over the years.
The agreement also includes $2-billion in federal financing.
PM Trudeau says the agreement will ensure the financial sustainability of Muskrat Falls.
Meanwhile, a small group of protesters gathered outside the Confederation Building to call for an end to hydro development on Indigenous lands.
Carrying signs bearing messages like “Water = Life” and “Stop Jailing Land Protectors,” the group chanted “no more hydro dams on stolen land” from outside the Confederation Building lobby, while the Prime Minister and Premier announced today’s agreement on Muskrat Falls.
Earlier Story
The provincial and federal governments have hammered out a deal on rate mitigation to protect people from electricity rate shock.
There is more work to be done but the Prime Minister says they will ensure the financial sustainability of the project. Justin Trudeau says it’s a step in the right direction.
There is a technical briefing taking place at 1 p.m., which will provide more details on the deal.
Trudeau says they’ve landed an agreement with the provincial government that will ensure the financial sustainability of the Muskrat Falls project while protecting people from major electricity price increases.
No details on the agreement. @VOCMNEWS pic.twitter.com/QG153B89v2
— Ben Murphy (@VOCMBen) July 28, 2021
The Prime Minister and Premier Andrew Furey will take questions later this afternoon on rate mitigation at the news conference on $10-day child care.
Premier Furey calls this a historic day as Muskrat Falls is a pervasive issue for everyone. Furey says people want to know what they will be paying for electricity. He says this deal will finally “get the Muskrat off our back.”
The Provincial Tories and the NDP will respond to the announcement this afternoon.
