Da Legal Stuff...

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Now, with that out of the way...Let's Web Talk.

Tuesday, August 17, 2010

One American Appears to Understand NL better than Most Canadians

I came across an interesting blurb today in the Rutland Herald - out of Vermont. It seems that Vermont is the next state on Hydro-Quebec's radar for negotiating a long term power sales contract. It's interesting to see that some individual south of the border is aware of the situation existing between Quebec and NL, even it most Canadians, including those living in Quebec, are not.

Here's the piece, it can be found online at:

While negotiating hydropower contracts, New Englanders and New Yorkers should understand Hydro-Québec’s power from the north.

Québec is slightly larger than Alaska, adjoining Newfoundland and Labrador are slightly smaller than California. Precipitation is plentiful, and so is hydropower, much of it still undeveloped.

Americans are accustomed to electricity freely generated and sold via shared power grids. Government-owned Hydro-Québec does not share its grid, requiring ownership of electricity that it transmits. Buying the output of Newfoundland and Labrador’s huge Churchill Falls hydropower plant at a declining rate of about 0.2 of a cent per kilowatt-hour, then reselling it at market rates, Hydro-Québec’s gross profit, at Newfoundland and Labrador citizens’ expense, is approximately $1.7 billion annually on electricity for which it paid about $63 million.

In 2009, Hydro-Québec electricity exports were 10 percent of net sales and 22 percent of net income at an average cost of 2 cents and price of 6.8 cents per kilowatt-hour. Hydro-Québec compels Newfoundland and Labrador to subsidize electricity sales to us at lucratively competitive rates. Unsold hydropower is worthless. Buying it from Hydro-Québec, New Englanders and New Yorkers should ensure that Newfoundlanders and Labradorians are repaid fairly for their power.

Working together, we can drive a hard bargain with a hard bargainer that is fair to all.

Now isn't that something. Cheers to the writer from Web Talk.

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