Agreement Helps Ensure Clean Energy, Lower Rates, Good Jobs

An agreement signed today, Aug. 19, by Energy Minister Charlie Parker will help ensure clean energy, lower, more stable power rates and good jobs for Nova Scotians for decades to come.

Mr. Parker was in St. John's, N.L., today, to sign a Memorandum of Agreement with the federal government and Newfoundland and Labrador.

The agreement is a commitment from the federal government to provide a loan guarantee in support of the Lower Churchill hydro-electricity project. It also establishes the process to finalize the guarantee by Nov. 30.

"This is a massive project that will change both the economic and energy landscapes of Nova Scotia," said Mr. Parker. "I'm pleased that our governments were able to take this important step forward, demonstrating continued commitment to jobs, economic growth and a more sustainable future for the region."

Mr. Parker said today's announcement is great news for the people of Nova Scotia and Newfoundland and Labrador.

"The real beneficiaries of the federal assistance will be the ratepayers," said Mr. Parker. "The loan guarantee reduces the cost of the project. Any savings will flow back to electricity customers in the two provinces, helping to keep their rates down."

The Lower Churchill project is part of the jobsHere plan to grow Nova Scotia's economy. The project is expected to generate $3.5 billion in jobs and economic spinoffs, including more than 18,000 person years of employment -- almost 6,800 person years of work in Nova Scotia alone.

The project will provide Nova Scotia with clean energy at a lower, more stable rate for 35 years when power starts flowing in 2017.

It will also go a long way toward helping the province achieve its clean air and renewable energy targets set out in the Renewable Electricity Plan. The province has committed that 25 per cent of its electricity will come from renewable sources by 2015, and 40 per cent by 2020. The project will also reduce greenhouse gas emissions by one million tonnes a year.

"The province is continuing to work hard on its commitment to reduce its dependance on fossil fuels," said Mr. Parker. "This is a significant step to ensure clean energy, more stable power rates and good jobs for Nova Scotians."

The federal government also announced that it has issued a Request for Proposals to hire financial advisors to undertake due diligence work in advance of the loan guarantee for the Lower Churchill project. The request is posted online and closes on Sept. 2.