First the friends of Muskrat Falls, then Danny Williams extolled the virtues of the project. When you look at who is going to pay for this $6-billion to $8-billion boondoggle, you can’t blame them for being ecstatic.
Nalcor plans to have Newfoundland and Labrador Hydro sign an agreement to buy 100 per cent of the power from Muskrat Falls at cost plus 11 per cent. I couldn’t understand why they needed a signed agreement to purchase; could it be that they would have a hard time trying to get loans without a customer for the power?
Newfoundland and Labrador Hydro has only Newfoundland Power to sell the power to, and they have only the island ratepayers to pay for it. With the deal the way it is, the ratepayers can’t be bailed out by oil money or taxes. We’ll be on the hook for 50 years. Hydro is a Nalcor company. In other words, Nalcor is selling power to itself.