Should we prepare for a fire sale at NL Hydro?
In my letter to the editor of April 11, “Dividing Nalcor – brilliant move or cause for concern,” I outlined my concern that the separation of the oil and gas division of Nalcor had deeper implications than simply allowing for “better focus” on the development of our offshore. My fear being that there could be far more controversial agendas at play such as privatization, selling off of hydro assets, and/or secret deals in the making with Emera, Fortis and/or Hydro Quebec.
While there may be some that would attribute my assertions to paranoia or conspiracy theory, based on my experience in the political world and listening to what is and isn’t being said, my spidey senses have been tingling ever since being made aware of this revelation during this year’s budget speech.
So is this, indeed, a case of paranoia on my part or could there be a kernel of truth within my speculation? Well interestingly enough, in an article of May 4 by the Telegram’s Ashley Fitzpatrick entitled “In-depth: Options for Newfoundland and Labrador Power Rates Still Unclear,” I noted the following quotes tucked away within the story:
“This week, Fortis CEO Barry Perry said he is interested in seeing Fortis subsidiary, Newfoundland Power take on N.L. Hydro distribution lines “for a fair value” suggesting the sale could help Hydro with power rates.” (fair value for who I wonder?). The story later goes on to say that Minister Siobhan Coady didn’t close the door to the idea and went back to her mantra of all options on the table stating: “There’s no reason why not to consider whether or not it would be valuable for them to have more (power lines).”
It’s also worth noting that while all these “options are on the table” the CEO of Nalcor continues to be permitted by this government (through his contract) to maintain up to 5 per cent interest in Fortis. Despite numerous inquiries by yours truly to two different auditor generals and assurances that a review of this arrangement would be undertaken, two years have passed and I am still awaiting the report.
So should we be concerned? Is this tidbit of information dropped by Perry and Coady meant to prepare us for the inevitable sale of public assets to Fortis? Could this be the thin edge of the wedge? Could there be other discussions taking place within the back rooms of power (pardon the pun) between Nalcor and the other aforementioned stakeholders in the energy industry? While I have my suspicions, I honestly don’t know the answer to these questions.
One thing that I am sure of however is that while many of my colleagues seem to be distracted with matters associated to bullying, intimidation and harassment inside the House of Assembly, this member will be continuing to keep a very close eye on what is happening at our once great “Energy Warehouse.” I encourage others to do likewise as there may indeed be reason for concern.
Paul Lane Independent MHA
District of Mount Pearl-southlands