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How much?

Published on December 10, 2012; Published on December 10, 2012

Topics :: Newfoundland and Labrador Hydro

In question period in the House of Assembly on Nov. 26, the leader of the third party, Lorraine Michael, asked Natural Resources Minister Jerome Kennedy how much per kilowatt hour island ratepayers would pay after Muskrat Falls. His reply, after the usual runaround about how they calculated costs, was that ratepayers would pay double in 2017 without Muskrat Falls.

This is probably true, because Nalcor has a monopoly on our power. Since July 1, 2011 Newfoundland and Labrador Hydro has increased the power rates by 13 per cent and said it was because of oil price increases. For the rates to double by 2017, these phantom oil prices would have to double. I think that the reason rates will go up so much is that Vale Inco’s plant will come on stream and will be supplied with power from Holyrood.

How much do you think Vale Inco will pay for that power?

Gerry Goodman

St. John’s

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Comments

Maurice E. Adams

- December 10, 2012 at 08:37:16

Holyrood accounted for only 11.5 % of our energy use in 2011. Therefore oil prices or usage would have to go up about 1000% to double rates (almost 85% or so of the island's energy supply is unaffected by oil price or use). Would it not? In 2003 Holyrood oil cost $115 million. Last year it was $130 million --- and Nalcor gave evidence to the PUB last year that due to excess capacity (insufficient demand on the island) it spilled the energy equivalent of Vale's needs (694 Gwh) last year and that it would CONTINUE TO SPILL WATER OVER OUR HYDRO DAMS UNTIL VALE COMES ON STREAM TO USE UP THE EXCESS CAPACITY. So, even with Vale, Holyrood will not be used to supply all of Vale;s needs,

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