UPDATE: Dunderdale, Nova Scotia Premier Darrel Dexter meeting this afternoon

The Canadian Press
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Nova Scotia Premier Darrell Dexter. File photo

Nova Scotia Premier Darrel Dexter arrived at Confederation Building in St. John’s late this afternoon for a meeting with Premier Kathy Dunderdale.

The visit to the province was unannounced, but seems to be concerning the Muskrat Falls hydroelectric project. According to reports, Dexter is concerned about potential cost overruns on the project.

Nalcor CEO Ed Martin was also seen entering into the building.

Dunderdale is expected to speak to reporters some time after the meeting wraps up.


(earlier story)

HALIFAX — Nova Scotia Premier Darrell Dexter says the potential increase in costs for the Muskrat Falls hydroelectric project in Labrador is concerning, but it’s still the most effective way of delivering power to his province.

Dexter’s comments came ahead of a meeting Thursday with Newfoundland and Labrador Premier Kathy Dunderdale about the proposed development.

The cost of the project has previously been pegged at $6.2 billion, but Dunderdale has said that will likely increase.

When asked whether he was concerned about the possibility of costs for Muskrat Falls escalating, Dexter replied, “Of course.”

“We’ve already looked at that and we’ve done studies that look at the delivery of power to Nova Scotians,” Dexter said in Halifax.

“And the most effective way of doing that is through the a project like the Lower Churchill.”

As part of the proposal to build the project, a 180-kilometre subsea cable link would be built between Cape Ray, N.L., and Lingan, N.S. The cost of that has been estimated to be $1.2 billion.

Under the conditions of a term sheet announced in 2010 to develop the project, Newfoundland and Labrador’s Crown energy company would spend $2.9 billion to build a power generating facility at Muskrat Falls capable of producing 824 megawatts of electricity.

The project would provide Nova Scotia with 170 megawatts of energy annually — about eight to 10 per cent of the province’s total power needs — for 35 years.



Geographic location: Muskrat Falls, Nova Scotia, Newfoundland and Labrador Nova Scotians Halifax Cape Ray

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Recent comments

  • Joseph McGrath
    July 12, 2012 - 15:41

    This development of our hydo resourse opportunity seems to be slipping away from us completly.What a shame that stalling,delaying,lack of confidence and information and no final costing and sharing agreement is raising doubts more and more each day.I thought the project had some real merit for NL and another financial and development chance for the generation to follow me.Alas I think the project is now in real trouble because as usual politicians and others can say and do as they please knowing that in truth they account to no one.As taxpayers we sit on the sidelines watching officials and hear phone in callers pretty well say whatever they want and politicians speaking now and then and quickly running for cover. Danny Williams set us on a path to be MASTERS of our own house but we are failing miserably in achieving it.Shame on every citizen of NL for letting this happen.I now truly understand what the following quote means to us as a people living in NL".Politicians are people who, when they see light at the end of the tunnel, go out and buy some more tunnel. ~John Quinto.Very sad for all of us!!!!!!

    • David
      July 13, 2012 - 11:41

      Oh, it won't "slip away".....Newfoundland has a long history of seizing these exact "opportunities" with great gusto. It's our fate.

  • Eustace Flynn
    July 12, 2012 - 14:16

    I don't know which Kathy Dunderdale premier Dexter was talking to but it couldn't be NL's. Our Kathy Dunderdale says the costs WON'T rise.

  • Cold Future
    July 12, 2012 - 13:39

    Muskrat is a great gift to the Nova Scotia people which will be carried on the backs of NL ratepayers. However, NS beware that Quebec has become our bitter enemies after receiving such a great gift at Upper Churchill. The NL goverment doen't care though because why should ecomonics and pay back be part of such a great project and another polotical party will have to carry on with picking up the pieces after the next election. Fill in the blanks: S-----? Newfies-you've got to love them.

  • Jack
    July 12, 2012 - 13:36

    Since Lingan already has a large scale wind farm, you can see it when you take the ferry to Nova Scotia, how will they be able to support a subsea cable?

  • Jack
    July 12, 2012 - 13:34

    David, because Nova Scotia Power is a privatized power company, decisions regarding Muskrat Falls project should be up to its parent company, Emera, not the Nova Scotia Government. In case you don't know, Nova Scotia is running into its own problems with using renewable energy, and its coming from within. In fact, like parts of Newfoundland and Labrador whom suffer from NIMBY syndrome when new projects are being implemented, its happening in some Nova Scotian counties, particularly Kings County. Because Nova Scotia has no access to other renewable energy options, including solar and hydro, they have to rely on wind power to cut their dependence on fossil fuels and still meet their energy demands. However, due to Kings County's ignorance towards wind mills despite being in an optimal location, they now imposed a moratorium on them, and potentially hurting Nova Scotia's ability to meet their renewable energy goals and keep out of control electricity prices stable though Emera's persistent gouges account for a good part of the high prices.

    • David
      July 12, 2012 - 14:26

      Wow, Jack...just wow. That post has some tie-in to mine, does it?

  • BI
    July 12, 2012 - 13:28

    He thinks he is worried for NS - I wish we had a premier that was worried about increased costs for NL - we are being through out to the slaughter again. This will turn out just like Joey's Churchill Falls deal and the people of the island of Newfoundland will once again pay.

  • Eli
    July 12, 2012 - 13:27

    If there ever was any doubt, this damn dam is not for our benefit but Nova Scotia. Can we be any stunder? Just what was up Danny's sleeve when he initiated this?

  • David
    July 12, 2012 - 12:50

    Why should Nova Scotia care if the costs go totally out of control? We sure don't! Who cares, right? I've come to realize from the teachings of the wizards on this messageboard that this amounts to free power forever, so just pay whatever it takes...no economics to even think about. If there's no one to buy the power, we just build a big battery factory and store it in billions of 'C' or 'D' cell Eveready's.....problem solved! So c',mon NS ----- don't wuss out on us! Bet the farm on a political hunch and a prayer, just like 'savvy' NL is doing! Let's go bust together...it's Lotto time!!

    • Information-Based
      July 13, 2012 - 00:18

      Absurd as always, David. Maybe we can find a way to run your limitless hot air through a turbine instead. Talk is cheap! Let's all just hear it from the horses' mouths before we begin the theatrics and histrionics.