I write in reply to the June 10 editorial (“Popular, perhaps — but flawed”).
The Telegram is wrong when it says the costs of Muskrat Falls must be paid fully by us as ratepayers. It is wrong again when it says my plan for dismantling Nalcor is merely to transfer all of Nalcor’s costs to Newfoundland and Labrador Hydro.
Having Hydro take control of Nalcor is the right thing to do. The costs will be borne by the Muskrat Falls project as staff are laid off. This was going to happen in any event. Hydro already has the management infrastructure in place and has been running our provincial system for years. We will save money by having one company managing our electricity projects.
With regard to Muskrat Falls, we cannot now, nor will we ever be able to, pay for it. The province has already made that clear. The current plan calls for a rate of 23 cents per kilowatt hour, which will likely go higher. We cannot allow that to happen because once rates begin to rise, they will never come down. Bankruptcies will soar, businesses shutter and communities collapse. We will never recover from the economic fallout of COVID-19.
If given the chance, I will not let this happen. There is a common belief, one shared by The Telegram, it seems, that our fate is sealed. That we have no cards to play. That’s simply not true.
We control the switch! The current government committed to 13.5 cents/kWh. The feds indicated that it would work with the province to achieve that rate. But so far there’s no commitment, leaving most of us worried as to when the hammer will fall.
I intend to force the issue with Ottawa and draw a line in the sand. Until we get a guarantee that our rates won’t go up beyond the promised 13.5 cents, I will not allow power to flow. This is a business transaction. And for once, we have leverage. We just need the courage to use it.
It is up to Ottawa then to figure out how they rework the various contracts, or what to do with the project. Because they will own it. They can figure out what to do with Emera. They can sell it. Or mothball it. But we have to get that guarantee — not one red cent beyond 13.5 cents.
We are at a crossroads. We have to decide if we want to take charge of our own future or if we want someone else to do it for us. We don’t ever need to go on bended knee. We need to put politics aside. Stand up, and stand together. And carve out a future on our own terms. This is not a time for the weak of heart or a novice observer.
John Abbott
Candidate for leader of the Liberal Party of Newfoundland and Labrador
