Newfoundland & Labrador - When is an Energy Plan not an Energy Plan?

Yesterday was not a good day for yours truly.

Like many others my day began with vivid recollections of the travesty that took place on September 11, 2001. The anniversary of 9/11 is enough to deeply sadden any caring person but for me that mood became even darker as the day wore on.

Before noon I lost my longtime companion and best (four legged) friend of over 16 years.

There’s nothing like taking a friend, especially one you’ve had since he was a 4 weeks old, for that last long trip to the local vet. If you’ve never had to do it I don’t recommend it to anyone.

Of course I’m in no way comparing my personal loss to the anniversary of 9/11, but with both events stirring my emotions on the same day I spent the afternoon looking forward to anything that might provide some much needed distraction, if even for a brief moment. Thanks to Premier Danny Williams I found what I was looking for. Unfortunately a brief moment of distraction was about all it provided.

Just before noon yesterday the government of Newfoundland and Labrador released what it billed as a new energy plan for the province. Something everyone had been looking forward to for a long time. On first reading I wasn’t quite sure how to react to it and after further review I realized why.

One question kept popping into my head: When is an energy plan not an energy plan?

The answer came quickly: When it raises questions instead of providing answers.

Don't get me wrong, I see a lot of vision and direction in yesterday's release and while that in itself is a good thing it’s also the problem. The document, while providing some level of detail around gas royalties, for the most part reads more like a strategic vision than an actual implementation plan.

Of course there’s nothing wrong with setting a visionary direction and in all fairness it can't be easy to include a lot of detail in a document intended to span several decades. I suspect however that most people in the province and in the energy sector itself were looking for something with a lot more meat after waiting so patiently.

Maybe it’s just the mood I’m in. Perhaps, under the circumstances, it would have taken a document on par with the Declaration of Independence to fully impress me. Be that as it may, I see this so called plan as little more than a guideline document that will, more likely than not, end up collecting dust after the “Williams Team” eventually moves on and a new government takes its place.

On a brighter note, I like the fact that oil industry representatives were quick to say they are willing to work within the guidelines presented, even though they are not overjoyed about the equity position government expects on future projects.

The way I look at it, it's always a good sign when those who covet what you've got aren’t walking away angry, but it's an even better sign when they aren't slapping each other on the back and high fiving it all the way to the bank.

On that front Williams seems to have struck a balance between provincial need and industry greed.

The weakest part of the plan for me is the province’s direction on clean energy, or hydro power. It’s here that Williams has left a lot of questions unanswered.

In the document the government speaks of connecting the isolated island power grid to Labrador via an undersea cable. The intention is to use some of the power from the proposed Lower Churchill development as a replacement for the oil fired generating plant at Holyrood. This is great news for the environment and with the cost of oil these days it should be welcome news for consumers in the long term.

Where the plan is seriously lacking is around the use of Lower Churchill power to attract industrial development in Labrador.

Though a few references to industrial development and making the people the prime beneficiaries of the resource are peppered throughout the document, nowhere does the plan clearly state that partnering with industrial players and encouraging them to locate inside the province will be aggressively pursued. Instead there are only cryptic references to economic growth. It's almost as if the idea of local industrial growth was added as an afterthought to appease the public.

After touching on the topic of industrial growth the plan moves quickly on to the exporting of power into the North American grid.

Once again, this part of the plan is light on detail and direction and it shouldn’t be.

The selling of Lower Churchill power outside the province brings up a very sore point for many Newfoundlanders and Labradorians. Exporting power is not a preferred option for many. It is viewed as providing a way to foster industrial growth in places like Quebec and Ontario while unemployment continues to soar inside the province and local people move away by the thousands to the very places that would be the recipients of that power.

The public distaste and underlying anger around selling power instead of using it to attract industry is often further aggravated when the prospect of moving that power through Quebec is discussed.

The hangover from a lopsided Upper Churchill contract is still being felt very strongly and in some ways has shaped the psyche of the entire province when it comes to the prospect of making another “bad deal”.

For as long as he’s been in office Premier Williams has all but ignored partnering with potential long term industrial partners and instead claimed that his team is actively considering exporting power through a maritime route rather than acquiescing to what many suspect will be exorbitant demands by Quebec Hydro.

While this new energy plan speaks of the afore mentioned undersea link to the island as providing a starting point for this alternate route it doesn't go beyond that. What isn’t mentioned is the very serious capacity issue outlined in a 2005 government report recently acquired by the CBC. That document identifies major concerns with the provincial power grid and its ability to handle any substantial increase in power distribution. The grid is essentially maxed out and as such poses a major problem for any plan to bypass Quebec with the Lower Churchill.

This glaring omission is very concerning to those following the direction of the Lower Churchill development. Though government is still publicly saying that the maritime route is a valid option, the fact that there is no mention of capacity issues and little acknowledgement of industrial power use in Labrador, seems to be a clear signal that government has already made its mind on how it will proceed. It looks like they plan to either hold their noses and use the Quebec corridor after all or, if the public outcry is becomes deafening, shelve the project entirely.