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April 12, 1999
(Mines and Energy)


Minister responds to release of e-mail messages by MP Lawrence O'Brien

Roger Grimes, Minister of Mines and Energy, today responded to the release by MP Lawrence O'Brien of e-mailed messages between Newfoundland and Labrador Hydro engineers concerning the Labrador Hydro Project.

"The e-mails that Mr. O'Brien has released simply confirm what I set out in my press release on April 9," said Minister Grimes. "They indicate that one option being studied is using the Upper Churchill power plant, rather than building an additional power plant at the site, to generate electricity from water diverted from Quebec into the Smallwood Reservoir."

This option would involve increasing the utilization rate of the existing 11 generators at the Upper Churchill power plant to about 82 per cent from 70 per cent. If this is feasible, it would reduce the cost of the project and increase the profits for Newfoundland and Labrador and Quebec.

Also being studied is a cost-benefit analysis of diversion of the Romaine River in Quebec, rather than diversion of both the Romaine and St. Jean Rivers. About 88 per cent of the diversion water would come from the Romaine River. Diversion of the Romaine is important to increase power production and profitability at Churchill Falls and Gull Island and Muskrat Falls (if this site proves feasible).

"No decisions have been made on any modification to the configuration outlined on March 9, 1998," Grimes added.

Work continues on the other project components: Gull Island, transmission lines, the infeed to the island of Newfoundland, and Muskrat Falls. The final inter-utility Memorandum of Understanding (MOU) will follow after further engineering work has been evaluated, and changes, if any, agreed to by all the parties.

Media contact: Carl Cooper, Director of Communications, (709) 729-4890.

1999 04 12 3:05 p.m.


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