Response to the SNL article "Newfoundland government, Emera approve Muskrat Falls hydro/transmission project"

We would like to request a correction regarding your column titled “Newfoundland government, Emera approve Muskrat Falls hydro/transmission project” published in the SNL on December 18, 2012. In it, you assert that “Nalcor Energy was rebuffed by Hydro-Québec” with regard to their request for transmission over Québec’s grid.

To transmit large new volumes of electricity across the grid, major investments are required. At the moment, Hydro-Québec is investing $1.8 billion in additions and upgrades to transmit hydropower from the Romaine River hydro project now under construction.

Similarly, transmitting power from Lower Churchill over a distance of 1,500 km through Québec to the United States and Ontario would require several billons dollars’ worth of investments in the Québec grid. Hydro-Québec informed Nalcor of this fact in response to their transmission request.

In compliance with the OATT and normal transmission industry practices in North America, it is up to the transmission customer, in this case Nalcor, to pay for any investments demanded by new transmission service requests. The Régie de l’énergie (Québec energy board) confirmed the validity of this position on May 11, 2010, but Nalcor refused to assume the costs.