Thursday 6 April 2023

Atlantic Loop on track for milestone agreement by June

 

Atlantic Loop on track for milestone agreement by June

Federal minister expects agreement in principle in 'the next few months'

Detailed "sensitive commercial conversations" are underway with utilities in Quebec, New Brunswick and Nova Scotia, he said.

"I'm very hopeful that those discussions will be fruitful and in the next few months we'll have an agreement in principle," LeBlanc told CBC News.

The Atlantic Loop would deliver hydroelectricity from Quebec and Labrador into Maritime provinces that currently rely mostly on fossil fuels for electricity.

Speaking after a university funding announcement, LeBlanc acknowledged a delay in reaching the agreement, but said that's not because of problems with the Muskrat Falls hydro project in Labrador. He said the Atlantic Loop discussions are focused on improving grid connections between Quebec and New Brunswick and New Brunswick and Nova Scotia.

"The particular conversations that we're having now involve a portion of the Loop that really are not related to Muskrat at this particular moment," he said.

Ottawa has set aside $20B for clean electricity projects

The most recent federal budget spelled out where Ottawa's financial contribution will come from.

The Canada Infrastructure Bank was allocated $20 billion to "support the building of major clean electricity and clean growth infrastructure projects" across Canada.

"These investments will position the Canada Infrastructure Bank as the government's primary financing tool for supporting clean electricity generation, transmission, and storage projects, including for major projects such as the Atlantic Loop," the 2023 budget document states.

Milestone 'slipped' by 3 months

LeBlanc admitted that reaching the milestone agreement in principle has "slipped by a quarter" but he's hoping the agreement will be in place by the end of June.

He attributed the delay to providing federal negotiator Serge Dupont with the detailed mandate to talk dollars. Dupont is a former senior federal civil servant.

Federal infrastructure minister Dominic LeBlanc gesticulates while speaking to CBC's Paul Withers. Federal Infrastructure Minister Dominic LeBlanc, left, at a press conference with the CBC's Paul Withers on Tuesday. (CBC)

There was no indication a decision by Emera, the parent company of Nova Scotia Power, to pause the mega project has had an impact.

Emera announced it was stepping back last fall after Nova Scotia's Progressive Conservative government imposed a rate and spending cap on subsidiary NSP.

"I go by what Serge Dupont and officials from the Privy Council Office who are involved in these conversations tell me," said LeBlanc. 

"I'm not pessimistic at all. Serge Dupont reports to us that his conversations with Emera, as well as with the utilities in New Brunswick and in Quebec, are very encouraging."

In a statement to CBC News Tuesday, Nova Scotia Power confirmed it is engaged in discussions with both the federal and provincial governments and neighbouring utilities.

"As the operator of the province's energy grid, we have an important role to play in meeting ambitious climate goals at the federal and provincial level as Nova Scotia transitions to cleaner energy. The Atlantic Loop has the potential to be an important part of the solution for the region. Federal support is critical to reducing the cost impacts of the clean energy transition for customers," spokesperson Jackie Foster said.

Is completion by 2030 feasible?

Last week's federal budget defined the Atlantic Loop as "a series of interprovincial transmission lines that will provide clean electricity between Quebec, New Brunswick, and Nova Scotia."

It did not include the other half of the Loop: hydroelectricity generated from Muskrat Falls in Labrador, sent into Newfoundland and across the Cabot Strait into Nova Scotia.

The budget commits Ottawa to negotiations for a 2030 project delivery.

It is also the deadline to close plants that generate electricity by burning coal.

LeBlanc said he was hopeful that timeline can still be met.

"I'm every bit as optimistic as I was before that we can have this significant mega project online by 2030. But time is of the essence and we recognize on our side we can't cause any delays and we hope that the utilities and the provinces are as committed as we think they are to getting the right deal for Nova Scotians and for New Brunswickers and Atlantic Canadians," he said.

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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141 Comments
 
  
 
David Amos 
Cui bono?  
 
 
 
Ernesto Rafael
Exclude Quebec and all should be just fine.  
 
 
William Atkinson 
Reply to Ernesto Rafael
Yes. 


Andrew Gilmour 
Reply to Ernesto Rafael
For Quebec.  
 
 
Ewan Fox
Reply to Ernesto Rafael
they are the ones generating 80 percent of the power so good luck with that.  
 
 
William Atkinson  
Reply to Andrew Gilmour   
Doesnt matter. I live in NS.
 
 
Andrew Gilmour 
Reply to William Atkinson 
Keep paying through the nose, then.   


Ernesto Rafael
Reply to Ewan Fox
Until 2041 when their lease expires.  
 
 
Andrew Gilmour 
Reply to Ernesto Rafael 
Which is fine.  
 
 
William Atkinson 
Reply to Ernesto Rafael
Nobody has to exclude anyone. All that will happen is QC will say no thank you we are not interested.  
 
 
David Amos
Reply to William Atkinson
True 


Andrew Gilmour 
Reply to William Atkinson
Depends.
 
 
david andrews 
Reply to Ernesto Rafael
Ontario is the motor , Quebec is the transmission , Atlantic provinces the cooling system , the Prairies the cup holders , Alberta the gas tank , British Colombia the semi retirement work if you please . We all (ye all) can not do without any of them .  
 
 
 
 
 
 
Lou Bell
LeBlanc will get an agreement that will have Quebec holding the Atlantic Provinces hostage for decades , much like their last agreement with Newfoundland !  
 
 
William Atkinson 
Reply to Lou Bell
Never. QC is not smart but not dum enuf to embark on this liability monster.


William Atkinson 
Reply to Lou Bell 
Leblanc will do no such thing. First he is a liberal. Second he has zero influence and no leverage. 
 
 
Andrew Gilmour 
Reply to Lou Bell   
NL did that one all on their own. 


Andrew Gilmour 
Reply to Andrew Gilmour  
NL also messed up Muskrat Falls on their own.


David Amos
Reply to Andrew Gilmour 
C'est Vrai
 
 
 
 
 
 
 
Trevis L. Kingston  
So , the cost of a Kilowatt will be equalized in the Provinces within the Loop?
 
 
William Atkinson 
Reply to Trevis L. Kingston   
Communism works but not here. 
 
 
Trevis L. Kingston
Reply to William Atkinson  
A dollar is worth the same 100 cents ... anywhere in Canada.

Is that communism?

 
John Horner
Reply to William Atkinson  
Wow -- you're all over the map. What does communism have to do with this? 
 
 
Eddy Jay  
Reply to Trevis L. Kingston  
Ha !! Will the carbon tax disappear if PP gets elected ? I think not  
 
 
William Atkinson 
Reply to Eddy Jay 
Yes. If not he wont last 100 days. 
 
 
William Atkinson 
Reply to Eddy Jay
Btw, liberals are currently scheming to manipulate legislation in order to prevent tories from cancelling carbon tax when they get the power.
 
 
David Amos
Reply to William Atkinson 
Surprise Surprise Surprise  
 
 
Bill Crawford 
Reply to William Atkinson   
Which is easy to right off through legislation. We've had natural gas agreements in NB that the government cancelled with legislation with a clause they could never be sued. Simple as that. 


 
 
 
 
 

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