January 21, 1997
(Mines and Energy)
Newfoundland and Labrador Hydro files a
"Notice to Intervene"
with
the U.S. Federal Energy Regulatory Commission
Rex Gibbons, Minister of Mines and Energy, announced today that Newfoundland and Labrador Hydro (Hydro) has filed a "Notice to Intervene" with the United States Federal Energy Regulatory Commission (FERC). The FERC, an independent regulatory agency within the U.S. Department of Energy, regulates the transmission of electricity at the wholesale level.
Hydro's action relates to a request filed with the FERC by Hydro- Quebec's affiliate H.Q. Energy Services (U.S.) Inc. (HQUS) for permission to transmit (wheel) electricity into the U.S. marketplace at market-based rates.
"Hydro's objective is to secure the province's right to transmit electricity from Labrador to North American markets on terms that are open and non-discriminatory," says Gibbons. "This is consistent with FERC's Order 888, requiring that `Customers in the United States should not be denied access to cheaper supplies of electric energy, whether such electric energy is from a domestic source or a foreign source'."
Last Wednesday, the FERC denied a request similar to Hydro Quebec's for transmission access by the British Columbia Power Exchange Corporation (Powerex). The B.C. corporation's request was challenged by Grid Company of Alberta Inc. (Gridco) on the basis that the B.C. utility had not taken sufficient steps to reduce its provincial monopoly over power transmission. As a result of FERC's decision, it appears that Hydro-Quebec has now asked that the ruling on its request be suspended until they review their application.
Newfoundland and Labrador Hydro's intervention in HQUS's petition will be on much the same basis as Grid Company of Alberta Inc.'s intervention in British Columbia Power Exchange Corporation application. Newfoundland and Labrador Hydro's interests are being represented by a law firm in Washington.
Contact: Tara Laing, Assistant Director of Communications, (709) 729-4890.
| 1997 01 21 | 2:10 p.m. |
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