With Muskrat Falls winding down, the cost of the mega-project is looming large on the horizon.

Project costs ballooned to $12.7-billion from the $6.2-billion estimate at sanction, and Newfoundlanders and Labradorians are footing the bill.

Efforts are underway to try to keep power costs down for ratepayers, with some suggesting that the province simply default on payments, and force Ottawa’s hand to help.

Financial consultant Larry Short suggested to VOCM Morning Show Co-host Fred Hutton, that strategy might have some unintended consequences.

As an example, he refers to an incident in 1993, when Saskatchewan nearly went bankrupt and turned to the federal government for help.

Short says Saskatchewan had no buyers for its bonds. Ottawa called potential buyers, and then called in the provincial government, telling them that they would let the province fail if it didn’t close 54 medical facilities—forcing Saskatchewan to make major changes.