Wednesday 26 January 2022

Feds tap brakes on Atlantic Loop expectations

https://www.cbc.ca/news/canada/nova-scotia/feds-tap-breaks-on-atlantic-loop-expectations-1.6327728

 

Feds tap brakes on Atlantic Loop expectations

Intergovernmental affairs minister says more information on a business case is needed

Intergovernmental Affairs Minister Dominic LeBlanc says more information on the business case is needed before Ottawa can "justify a federal investment" in the proposed regional energy project.

The Atlantic Loop would expand the electrical grid connections between Quebec and New Brunswick, and New Brunswick and Nova Scotia, to provide greater access to renewable electricity, like hydro from Quebec.

"We think that the next six months will be critical to bring that clarity in terms of the cost, in terms of the business model for that infrastructure," LeBlanc told CBC News on Tuesday after sitting in on a virtual meeting of Atlantic premiers during discussions on the project.

"With that clarity will come a greater understanding of how the government of Canada can be a financial partner with the utilities in Nova Scotia and New Brunswick, for example, in terms of making that power, that greener energy available to people in Atlantic Canada."

Nova Scotia Premier Tim Houston has seized on the Atlantic Loop as an affordable solution to weaning the province from its reliance on burning coal to generate electricity — currently the source of about 50 per cent of electricity.

'We want to get off coal,' N.S. premier says

Nova Scotia Power coal plants must be phased out by 2030 when 80 per cent of electricity must come from renewables.

"We want to get off coal and we have to do that in a way that protects the ratepayers of this province," Houston said Tuesday.

He said building the Atlantic Loop would cost $5 billion and is publicly lobbying Ottawa to share the costs. Last fall, New Brunswick Premier Blaine Higgs wrote to Prime Minister Justin Trudeau seeking $5 billion for the project.

"We replied that the government of Canada is not on the verge of sending a $5-billion cheque to the utilities in Nova Scotia or New Brunswick," said LeBlanc. "That's not how this conversation should work."

LeBlanc said the Liberal government is on board with the Atlantic Loop — it's part of his mandate letter from Trudeau — but more technical work is needed on the required infrastructure upgrades and the part played by New Brunswick Power and Emera, owner of Nova Scotia Power.

Intergovernmental Affairs Minister Dominic LeBlanc sat in on a virtual meeting Tuesday of Atlantic premiers during discussions on the Atlantic Loop. (CBC)

"So we can understand the full nature of these costs and we can understand the business model that would justify a federal investment. The cost of electricity and electricity generation is not a federal responsibility. It's a provincial responsibility," said LeBlanc.

"But we recognize as a national government that the obligation, for example, to get off coal-generated electricity by 2030 is one that the government of Canada should share with the provinces of Atlantic Canada."

Not like N.L.

LeBlanc rejected comparisons between the Atlantic Loop request and the $5 billion in assistance Ottawa handed to Newfoundland and Labrador to subsidize power rates. Rates had been poised to soar to pay for massive cost overruns in the provincially owned Muskrat Falls hydro project in Labrador.

Muskrat Falls is now so expensive it threatened to push Newfoundland and Labrador power rates up to an unaffordable 23 cents per kilowatt. The federal assistance kept them at 14.7 cents.

Trudeau travelled to St. John's in July 2021 to announce the deal.

The lion's share is annual transfers from Ottawa equivalent to its annual royalty gains from its share in the Hibernia offshore oilfield, estimated at $3.2 billion. There are also loans and loan guarantees.

LeBlanc said the assistance is not the same.

"It's much different than a discussion around subsidizing directly interprovincial electricity infrastructure," he said.

Urgency recognized

Houston emerged from the meeting of Atlantic Premiers saying he heard what he needed from LeBlanc — a recognition of the urgency of the situation and the role the Atlantic Loop would play in getting the province off coal.

"My sense is that they believe in the project," Houston told CBC News.

"They believe in the environmental goals of the project and they certainly understand the need to be conscious of the impact on ratepayers and affordability."

ABOUT THE AUTHOR

Paul Withers

Reporter

Paul Withers is an award-winning journalist whose career started in the 1970s as a cartoonist. He has been covering Nova Scotia politics for more than 20 years.

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164 Comments
...
 
 
David Amos
Surprise Surprise Surprise 
 
 
 
David Amos
Welcome back to the circus
 
 
David Amos
Content deactivated  
Reply to @David Amos: Methinks many folks are waiting with bated breath for the clown Harvey Baby to make his entrance from stage left N'esy Pas? 
 
 
 
 
 
David Amos
"LeBlanc rejected comparisons between the Atlantic Loop request and the $5 billion in assistance Ottawa handed to Newfoundland and Labrador to subsidize power rates. Rates had been poised to soar to pay for massive cost overruns in the provincially owned Muskrat Falls hydro project in Labrador.

Muskrat Falls is now so expensive it threatened to push Newfoundland and Labrador power rates up to an unaffordable 23 cents per kilowatt. The federal assistance kept them at 14.7 cents."

Trudeau travelled to St. John's in July 2021 to announce the deal."

Yea Right Just before a needless election Trudeau the Younger bails out the only provincial liberal government Now he throws a wrench in this deal for the benefit of his home province

The cost of electricity and electricity generation is not a federal responsibility. It's a provincial responsibility," said LeBlanc.
 
 
 
 
 
 
 
Marguerite Deschamp
Shawn Graham was right, for once. Now we all have to pay because of the 🐝🐐s❗
 
 
David Amos
Reply to @Marguerite Deschamps: Graham is no hero Quebec backed away from NB Power because of Lepreau and shut down their reactor while his Father oversaw the insane refurbishment as a commissioner with the Canadian Nuclear Safety sheople
 
 
 
 
 
 
Lou Bell
" .... ..... like Hydro from Quebec " !!! Should tell us all what their vision for " THE ATLANTIC LOOP " looks like !! They want to turn Muskrat Falls into the new " Churchill Falls " !!!!!! It's all about Quebec first and nothing more !!!
 
 
Marguerite Deschamps
Reply to @Lou Bell: It's just because they speak French and you don't. You are just sour because you are not bilingual. Don't try to say you are, you're not❗You are just a jealous 🇱 🇴 🇸 🇪 🇷 because they are more successful than you.
 
 
David Amos  
Content deactivated 
Reply to @Lou Bell: Methinks even your hero Higgy would have to agree that a busted clock is correct twice a day N'esy Pas?
 
 
David Amos 
Content deactivated 
Reply to @Marguerite Deschamps: C'est Vrai
 
 
Mike Nesh 
Reply to @Marguerite Deschamps: Jealous? Is Quebec proud to take the largest equalization payments in Canada?
 
 
Marguerite Deschamps
Reply to @David Amos: Bien sûr❗
 
 
David Amos 
Reply to @Mike Nesh: Also True
 
 
Marguerite Deschamps
Reply to @Mike Nesh: Actually, per capita, it's us.
 
 
Mike Nesh 
Reply to @Marguerite Deschamps: Go find another country to pilfer money from. Tired of paying your meal ticket in life.
 
 
Marguerite Deschamps
Reply to @Mike Nesh: Are you telling me this knowing that I'm a New Brunswicker❓
 
 
Marguerite Deschamps
Reply to @Mike Nesh: Furthermore, if you're from the Maritimes as I am, you are paying no one's meal ticket.
 
 
David Amos
Reply to @Marguerite Deschamps: I resemble that remark
 
 
Ryder Pures
Reply to @David Amos: Can't tell the pair of yez apart.
 
 
Eric Tremblay 
Reply to @Lou Bell:
The objective is replace coal in Nova Scotia, bunker fuel in New Brunswick and diesel in the Avalon (Holyrood).

If Muskrat Falls can replace all those fossile fuel facilities with reliability, great!!

Otherwise, get what's missing from Hydro-Quebec.

If not, Hydro Québec is currently on the process to sell within Quebec and also export all its excess capacity.

The excess capacity is diminishing faster ttan expected - to the point that HQ needs planning for new capacity (wind power).

NB and NS have been operating their fossile plants for years despite many offers from Hydro-Quebec for cheaper and cleaner hydro.
But to no available. So HQ is not expecring any new sales here.

Emera prefered contributing to bankrupting NL with its "anglo saxo" underwater route. (Wait until the NLers understand that contract...)

If that Altlantic is to be perceived as illegal subsidies by the USA, Hydro Québec will not touch it with a ten foot pole.
Otherwise HQ would risk to be shut of the US market.
 
 
David Amos
Reply to @Ryder Pures: I am the one who was erased
 
 
 
 
 
 
 
 
Lou Bell 
" Atlantic Loop " ? Smoke and mirrors ! This is all about what and how much Liberals can steer to Quebec , nothing more ! More like the " Atlantic Dupe " !
 
 
Marguerite Deschamps
Content deactivated 
Reply to @Loulou DumBell: Most Canadians will have nothing to do with CONservatives, except s few 🦕🦕 like you, here and there. Like fossil fuels, they will disappear into oblivion, the way of the dodo bird and the 🦕🦕🦕🦕.
 
 
Lou Bell
Reply to @Marguerite Deschamps: AS long as Dom and the Liberals are in power Irving is safe .
 
 
Lou Bell
Reply to @Marguerite Deschamps: Offshore money will be protected by Dom and the Liberals .
 
 
David Amos 
Content deactivated 
Reply to @Marguerite Deschamps: "the way of the dodo bird" ???

Methinks you enjoy using my expressions from time to time N'esy Pas?
 
 
Marguerite Deschamps
Reply to @David Amos: Sometimes... I do not always disagree with you, you know.
 
 
David Amos
Content deactivated 
Reply to @Marguerite Deschamps: Now that he has reinstated my Medicare Card When do you think Higgy will order his minions in SNB renew my drivers licence and have my Harley returned???
 
 
Marguerite Deschamps
Reply to @David Amos: I have no clue, to be honest. But, best of luck❗
 
 
Anne Bérubé
Content deactivated 
Reply to @Marguerite Deschamps: Just because the libs have brains as big as a pea, you do not have to remind them so often.
 
 
David Amos  
Content deactivated 
Reply to @Marguerite Deschamps: fossil fuels??? When was the last time you found a dead dinosaur 30 thousand feet underground? 
 
 
David Amos 
Content deactivated 
Reply to @Anne Bérubé: Methinks its very important to remind our fellow Canadians of that irrefutable fact Nesy Pas?
 
 
Anne Bérubé 
Content deactivated 
Reply to @David Amos: And how much fossil fuels is there in New Brunswick, really!!!
 
 
David Amos
Content deactivated 
Reply to @Anne Bérubé: A lot 
 
 
David Amos
Content deactivated 
Reply to @Anne Bérubé: Remember NB Coal Corridor Resources and the old oil wells in south eastern NB? 
 
 
Marguerite Deschamps
Reply to @Anne Bérubé: As least they have a brain, you CONservatives have none. 
 
 
David Amos
Reply to @Marguerite Deschamps: Surprise Surprise Surprise Just you and little Lou survived 
 
 
 
 
 
 
 
Ashleigh Mcsanderson
When will The Federal Government get back to the more important issues dividing this Nation more so than some pipe dream of loop stuff and things distraction?
PM Trudeau has the power to enforce an existing provincial border Mandate declaring that Truckers do not travel inter-provincially without showing their proof of double vaccination being shown.
Shut Down The Provincial Borders Now. No trucker should be permitted to cross provincial borders with showing their Double Vaccination Q R Code.
 
 
David Amos
Content deactivated 
Reply to @Ashleigh Mcsanderson: Methinks Mr Minster Leblanc may agree that is posted on Trudeau The Younger's calender as on or about the 12th of Never N'esy Pas?
 
 
Anne Bérubé 
Reply to @Ashleigh Mcsanderson: I hope you have transportation to and from the US to get your groceries, there is not much here in winter. 
 
 
 
 
 
 
 
Jimmy Jones
Its not open for discussion because organizations far more powerful than even the Canadian Federal government have long before divides the North American power grid up into various loop networks. An Atlantic Loop would be highly disruptive to those existing plan and have a disturbing effect on energy security along the Eastern Seaboard
 
 
David Amos
Reply to @Jimmy Jones: Bingo
 
 
Jimmy Jones
Reply to @David Amos: It amazes me how ignorant people are of the workings of the electrical grid in North America. Ask any lineman if solar and wind energy is a viable replacement for coal and the answer is no. The existing infrastructure is inadequate to capture and distribute that type of energy and the upgrades required would bankrupt any nation. Meanwhile hundreds of men working at a coal fired power plant in my area have little to no idea their plant is going offline with Muskrat Falls going online but this has been known by me for at least 8 years. The plans are available online for anyone interested in researching the future of the Eastern Interconnection.
 
 
David Amos
Content deactivated 
Reply to @Jimmy Jones: The awful truth is that most folks don't care 
 
 
Robert MacLellan
Reply to @Jimmy Jones: The coal plants may (emphasize MAY) go offline but they will still be needed to be on standby...idling hot and ready.... for when the wind does not blow else the lights go out. 
 
 
 
 
 
John Brown
I only 'know' one thing for sure: no matter how this goes, we're gonna be paying, and paying heavy...it's as sure as the sun setting in the west.
 
 
David Amos
Reply to @John Brown: I concur
 
 
Anne Bérubé 
Reply to @John Brown: How much does it cost monthly to heat a house with electricity now in N.B.? 
 
 
Eric Tremblay
Reply to @Anne Bérubé:
I know the electricity would have been much cheaper if HQ had bought NB Power few years.

How's NB Power is doing nowadays?

Any surpluses? Just kidding. 

 
 
 
 
 
 
Wayne Hann
Disappointing response from fed minister. Can you say ‘Churchill River’ Mr. LeBlanc?
 
 
David Amos
Content deactivated 
Reply to @Wayne Hann: Methinks he said in Chaic many times in the secretive political war rooms since he and I first crossed paths in 2004 Nesy Pas?
 
 
Anne Bérubé 
Reply to @Wayne Hann: What exactly Dominic, nic, nic do on a daily basis, we hardly see him at all. 
 
 
 
 
 
 
B.W. Fishman 
So how does Quebec end up the big winner in this??? That will be the question and only question.
 
 
David Amos
Reply to @B.W. Fishman: Methinks they get to keep Muskrat falls out of the loop selling Green energy to Yankees N'esy Pas?
 
 
Eric Tremblay
Reply to @B.W. Fishman:
NS (and its coal plants) and NB (and its bunker fuel plant) never wanted to buy any cheaper / cleaner HQ.

So guess what, we'll keep selling in the the US. (While we still have surpluses) 

 
 
 
 
 
 
 
Buford Wilson
The Atlantic Loop is no more.
Let’s move on.
 
 
David Amos 
Reply to @Buford Wilson: Surely you jest
 
 
 
 
 
 
Buford Wilson
Dominic politely said no.
 
 
Ronald McCallum
Reply to @Buford Wilson:
No, he didn't. He is asking for a business plan.
 
 
David Amos
Reply to @Ronald McCallum: Dream on
 
 
Eric Tremblay
Reply to @Buford Wilson:
You are right, it won't happen.

That loop would be perceived as illegal subsidies by the the USA. That would shut us (HQ) from exporting power in the US... 

 
 
 
 
 
 
 
Allan J Whitney
We have to understand that it takes them some time to get their sponsors to accurately model the coming failure.
 
 
David Amos
Reply to @Allan J Whitney: Yup
 
 
Anne Bérubé 
Reply to @Allan J Whitney: Well said, coming failure, just add this one to the list.  

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