Premier Lauds Historic Hydro Power Deal

NOTE: A social media version of this release with a downloadable graphic, video and audio clip is available at gov.ns.ca/news/smr/2010-11-18-Power-Deal/ . Additional photos, video and audio will be added throughout the day.

Nova Scotia families and businesses will benefit from 35 years of clean energy and more predictable, stable prices under an agreement announced today, Nov. 18, by Premier Darrell Dexter.

The deal, which gives the province access to power from Muskrat Falls in Newfoundland and Labrador by way of a subsea cable to Cape Breton, also ensures Nova Scotia gains economic benefits, including thousands of jobs from the construction of the massive project.

"This is an historic day for Nova Scotia, and all of Atlantic Canada," said Premier Dexter. "Through this partnership, Nova Scotia is taking a major step forward as an international leader in renewable energy.

"Today's agreement will create thousands of new jobs, stabilize energy prices well into the future and lifts the idea of Atlantic co-operation off the page and turns it into fundamental action, building a more prosperous nation."

Under the terms of the deal negotiated with Nalcor Energy of Newfoundland and Labrador, Nova Scotia Power parent company Emera Inc., will invest $1.2 billion in exchange for 20 per cent of the electricity generated by the project.

Emera has agreed to invest in the $6.2-billion project in exchange for about 170 megawatts annually of firm and flexible hydro-electricity over 35 years, and an option on an additional 330 megawatts destined for other provinces and the New England market.

It will account for between eight and 10 per cent of Nova Scotia's total power needs when it starts flowing in 2017.

Emera's investment in the project focuses on the Maritime Link, which consists of the sub-sea cable between Cape Ray, Nfld., and Cape Breton, the substations and the enhanced transmission grid leading to the New Brunswick border. The company will also make transmission investments in Newfoundland.

The deal supports the province's goal to create good jobs and grow the economy through achieving 25 per cent renewable energy by 2015, and 40 per cent by 2020.

Highlights of the agreement include:

• Creation of a projected 6,790 person-years of employment from construction of the Maritime Link
• An agreement, to be formally adopted by the two governments, providing Nova Scotians with full and fair access to economic benefits and employment on the Maritime Link
• About 10 per cent of Nova Scotia's electricity needs supplied at a firm rate for 35 years
• The ability to grow Nova Scotia's green energy sector by backing-up wind and other intermittent renewable energy with fixed, predictable electricity from hydro
• Firm power provided during Nova Scotia's 16 peak-usage hours -- The ability to purchase another 10 to 15 per cent of Nova Scotia's electricity needs at competitive prices, from hydro power that would otherwise be consumed in other provinces and New England.

"This is an extremely exciting and proud day for our province as we move forward with plans to develop the Lower Churchill project -- the most attractive clean, green energy project in North America," said Newfoundland and Labrador Premier Danny Williams. "The benefits of this project for our province will be enormous, including thousands of jobs and billions of dollars of economic activity.

"Our priorities have remained steadfast; that is to achieve maximum benefits for our people, and to secure stable markets with a good return for the people of Newfoundland and Labrador. This agreement achieves these goals and also solidifies a mutually beneficial partnership with Emera Inc. and Nova Scotia."

Premier Dexter plans to meet with New Brunswick Premier David Alward to discuss how this agreement will enable New Brunswick and Nova Scotia to further strengthen the electricity system in the Maritimes, and create more good jobs in Atlantic Canada.

"This is an historic agreement for our region and potentially transformational for our company," said Emera president and CEO, Chris Huskilson. "It results in a stronger regional system that is consistent with Emera and Nova Scotia Power's focus on cleaner, affordable electricity."

Power from the Lower Churchill project will result in a cost of electricity that is initially higher than the power generated by burning coal, but which will deliver increased value over the life of the deal.

Further details of the deal are being negotiated between Nova Scotia Power and Nalcor, and will be subject to public review and approval by the Nova Scotia Utility and Review Board.