Newfoundland and Labrador Natural Resources Minister Jerome Kennedy, Nova Scotia Natural Resources Minister Charlie Parker, Nalcor president and CEO Ed Martin and Chris Huskilson, Emera president, are shown during this morning’s news conference. — Photo by Tobias Romaniuk
The proposed multibillion-dollar Muskrat Falls hydro project has taken a step forward with the signing of 13 formal agreements between Newfoundland and Labrador and Nova Scotia.
Newfoundland Crown corporation Nalcor Energy and private Nova Scotia utility Emera (TSX:EMA) signed the deals today based on a term sheet announced in November 2010.
Officials told a background briefing that the 35-year deals are to wheel power from the lower Churchill River to Newfoundland and then Nova Scotia using subsea cables.
Nova Scotia would get 20 per cent of the power for covering 20 per cent of capital and operating costs.
Muskrat Falls is expected to generate 824 megawatts of electricity at a cost of more than $6.2 billion.
Nalcor and Emera signed the agreements in what they said is a necessary step toward a utility review in Nova Scotia and a decision by Newfoundland on whether to sanction the project.
Officials say the deals allow for flexibility should those reviews raise unforeseen concerns.
They say costs for the project and the resulting price of power will be clarified later this year.
Agreements have been signed between Nalcor and Emera outlining the progression of the muskrat falls project.
The agreement includes 13 formal agreements, outlining the specifics of deals with various stakeholders.
The 35-year agreement will see Emera getting 20 per cent of power while paying 20 per cent of the costs.
Those costs have yet to be determined, though, as Nalcor continues to work through the construction cost estimates.
Both nalcor and emera say this is the legal version of an agreement signed on November 2010.