Formal agreements signed for Muskrat Falls development
Nalcor Energy and Emera Inc. of Nova Scotia have reached formal agreements for the development and transmission of hydroelectric power from Muskrat Falls in Labrador.
Natural Resources Minister Jerome Kennedy, Nalcor President and CEO Ed Martin, Nova Scotia Minister of Energy Charlie Parker
and Emera Inc. President and CEO Chris Huskilson signed the agreement in St. John’s and Sydney, N.S., last week.
Mr. Kennedy insisted the signing represented a major step forward for Newfoundland and Labrador, and is another important milestone to moving closer towards a decision on sanctioning of the project.
“Muskrat Falls will deliver least-cost renewable power and stabilize rates, support economic development, and provide power to mining companies in Labrador. It will also provide long-term revenue through the export of electricity and reduce dependence on fossil fuels, along with economic and employment benefits for the province, the region, and the rest of the country.
“The Maritime Link will allow us to access the Maritime and New England markets and thereby gaining a fair and competitive price for our clean, renewable power. It will also facilitate the development of our province’s energy warehouse.”
Mr. Parker explained “By developing Lower Churchill and connecting it to wider markets, we are creating good jobs, growing the Atlantic economy and ensuring a cleaner energy future for ourselves, our children and grandchildren.
“This development is an important component in ensuring Nova Scotia meets federal coal reduction regulations, as well as our province’s greenhouse gas emission targets. Perhaps most importantly though, it will help stabilize electric- ity rates for Nova Scotians and their families.”
The Nova Scotia minister called it “a gamechanging opportunity for the Atlantic region, and part of the approach that makes Canada an energy superpower.”
Nalcor and Emera formalized 13 agreements spanning 50 years related to the development of Muskrat Falls, the Labrador-Island Transmission Link, and the Maritime Link.
The purpose of the agreements, which reflect the Term Sheet, is to formalize the transactions agreed to by the parties.
Six of the agreements reflect the commitment by Emera to develop the Maritime Link connecting Newfoundland and Labrador and Nova Scotia, and to provide transmission rights in Nova Scotia. Four agreements relate to transmission rights for Nalcor in the Maritimes and New England as a result of Emera’s investment in the Labrador-Island Link, which will span from Muskrat Falls, across the Strait of Belle Isle, to Soldiers Pond on the Avalon Peninsula. Three related agreements were also completed.
Mr. Martin suggested “The agreements signed today reflect the strong partnership between Nalcor and Emera, and the commitment by both companies to ensure a quality result for everyone involved.
“We took the time necessary to get it right, and I’m proud to say that today we have 13 comprehensive, sound agreements that will stand the test of time.”
Mr. Huskilson agreed “Today’s announcement sets the stage for the development of a new source and route for clean, renewable and reliable energy that will help stabilize energy costs, improve the environment and provide economic benefits for the entire region.”