A power expert who appeared at the House of Assembly on day two of the hydro debate calls the latest agreement a good one, not only for the two provinces involved, but the entire country.
The managing director of Power Advisory, Jason Chee-Aloy, says the current version of the agreement is less rigid, and gives Newfoundland and Labrador more options in terms of power availability.
He says the 5 1/2 cents per kWh for Churchill Falls power compares favourably to similar hydro purchase contracts in Canada, including Manitoba and Ontario where the price is five cents or less.
Chee-Aloy says the pricing structure – increasing to 11 cents after 2041 and 20 cents by about 2060 – exceeds all forecasts he has seen.
Jason Chee-Aloy (VOCM News)
“The price they’re receiving in Ontario is under 5 cents, Manitoba is receiving under 4 cents and New York receives under 2 1/2 cents.”
The Liberal Opposition says he’s on record during debate on the original MOU in January 2025 as saying that was a very good deal.
Chee-Aloy says virtually all provincial jurisdictions are short of supply right now, including the province where he is based, Ontario.
Ontario is embarking on an expansion of nuclear power, but he says that takes a lot of time.
“Everyone outside Newfoundland and Labrador is saying this deal is so great. Hydro Quebec is hard to deal with but they are good at what they do – they’re just shrewd negotiators. I see this deal as a win-win,” said Chee-Aloy.”
