Newfounland,Labrador - Getting the Quebec Shaft

Prime Minister Stephen Harper is travelling
to Labrador(Nov.30th.) to unveil details of
what is expected to be the loan guarantee
that he pledged during the 2011 federal
election campaign.

Interprovincial politics have played a key
role in Muskrat Falls, as Newfoundland and
Labrador and Nova Scotia have partnered to
find a way deliver power to other markets
while bypassing Quebec.

Newfoundland and Labrador has had a
strained relationship with Quebec for
decades, due largely to the 65-year
contract with Hydro-Quebec over the
Churchill Falls generating station. Under
that deal, which expires in 2041,
Newfoundland and Labrador sells power at a
flat, inexpensive rate to Quebec, which has
been able to resell the power to other
markets while keeping all the profits.

Today, Hydro Quebec pays only about 1/4 of
a cent for a kilowatt hour and then resells
it for up to 6 cents. That's like buying
oil at $1.65 a barrel and re-selling it at
the world price of over $30 (Canadian) a
barrel.Quebec retains all these profits.

In Ontario, you pay even more: domestic
consumers pay 88 mills or almost 9 cents
per kilowatt hour; industrial consumers pay

50 mills or 5 cents per kilowatt hour.