Muskrat Falls

NDP Leader Lorraine Michael

NDP Leader Lorraine Michael (MHA, Signal Hill-Quidi Vidi) blasted government today for putting show before substance in its Muskrat Falls announcement; she also had questions about a multi-million purchase from Manitoba Hydro.

 
NDP Leader Lorraine Michael

NDP Leader Lorraine Michael (MHA, Signal Hill-Quidi Vidi) is asking for a whole lot more transparency from government on its proposed Muskrat Falls development.

 

MR. SPEAKER: The hon. the Leader of the Third Party.

SOME HON. MEMBERS: Hear, hear!

MS MICHAEL: Thank you very much, Mr. Speaker.

 

MR. SPEAKER: The Leader of the Third Party.

MS MICHAEL: Thank you very much, Mr. Speaker.

 
NDP Leader Lorraine Michael

NDP Leader Lorraine Michael (MHA, Signal Hill-Quidi Vidi) says she did not get clear answers from the natural resources minister last week, so she asked again today about the possibility that the Muskrat Falls project could be privatized.

 

MR. SPEAKER: The hon. the Leader of the Third Party.

MS MICHAEL: Thank you very much, Mr. Speaker.

 

NDP Consumer Affairs critic George Murphy (MHA, St. John’s East) says Newfoundland and Labrador consumers could easily end up paying for power they never use. The “take or pay” power purchase agreement commits Newfoundland and Labrador Hydro to buying 40 per cent of the power produced by the proposed Muskrat Falls project for 50 years, whether consumers in the province use the power or not.

 
NDP Leader Lorraine Michael

NDP Leader Lorraine Michael (MHA, Signal Hill-Quidi Vidi) says there is a very real possibility that the people of Newfoundland and Labrador could go broke paying for the Muskrat Falls development, have to sell the project to pay the debt, and then have to pay whatever the buyer decides to charge for electricity.

 

MR. SPEAKER: The hon. the Member for St. John's East.

MR. MURPHY: Thank you, Mr. Speaker.

The take-or-pay power purchase arrangement will lock NL Hydro into buying 40 per cent of Muskrat power for fifty years. If all ratepayers do not use this power we still have to pay the amount stipulated under the take-or-pay arrangement by Nalcor.

 

MR. SPEAKER: The Leader of the Third Party.

MS MICHAEL: Thank you, Mr. Speaker.

The loan guarantee term sheet for the Muskrat Falls Project allows for a sale or change of control of subsidiaries among the different parties to the loan guarantee. Section 4.11 does not specify which subsidiaries are referenced.

 

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