Cost for Muskrat Falls hydro megaproject rises $1B: CEO

‘BOONDOGGLE’

Stan Marshall first place ... It was too late to stop. We couldn’t get a refund.”

The initial cost projections were drastically lowballed, he said: “Either intentionally or unintentionally, the costs were significantly underestimated.”

Marshall said 75 per cent of construction is now done, up from 48 per cent last May.

First power is expected in 2019 at an estimated cost of 23.3 cents per kilowatt hour before tax.

That’s up 8.2 cents from when Muskrat Falls was approved and is more than double recent rates paid by consumers.

Marshall and Premier Dwight Ball have said they’ll look at ways to lower those rates to ease average monthly bills that could otherwise go up more than $150 per month.

The previous Progressive Conservative government approved Muskrat Falls, a joint venture with Nova Scotia utility Emera championed by former premier Danny Williams.

Marshall said Friday its supporters gambled that energy values would stay high. They lost.

And costs could rise again, Marshall said.

“Muskrat Falls has had its surprises. I’m not going to say that there won’t be any more.”

He said Nalcor is working with Labrador aboriginal leaders to address methylmercury concerns.

“I’m not looking to do anything that will endanger people.” Doucet, New Brunswick’s minister for Energy and Resource Development.

Chief Tim Paul said his Woodstock First Nation would be working closely with the company and the provincial government to ensure environmental concerns are addressed.

“It is a historic event to see this kind of partnership. It is one that all New Brunswickers can benefit from as it will hopefully lead to a more environmentally sustainable project,” Chief Paul said.

But Lois Corbett, executive director of the Conservation Council of New Brunswick, still has concerns. She noted there were 40 conditions placed on the provincial environmental review.

“A lot had to do with the tailing pond design and risks to water such as the Nashwaak River. They would also have to set aside enough money that if an accident or disaster happened, the company would have enough reserve to cover it,” Corbett said Friday.

Chris Zahovskis, president and CEO of Northcliff Resources, issued a statement from Vancouver saying the decision reflects “our commitment to create a project that will bring economic benefits to New Brunswick while protecting the environment.”