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Paul Dicks
 Minister of Mines and Energy

Speaking Notes
Grand Falls-Windsor Power Purchase Announcement
October 18, 2000


Introduction

Good Morning,

  • First of all, I would like to acknowledge members of the media who have come here today and thank you for your attendance.

  • At this time, I would like to introduce our head table. At my far left is the Honourable Anna Thistle, President of Treasury Board and MHA for Grand Falls-Buchans; To my left is the Honourable Kevin Aylward, Minister of Forest Resources and Agrifoods and MHA for St. George�s-Stephenville East. To my far right, Mr. William Wells, President and CEO of Newfoundland and Labrador Hydro. To my immediate right is Gordon Oldford, General Manager of Abitibi�s Grand Falls-Windsor operations.

  • I would like at this time to acknowledge some other people who are attending this news conference today. We are happy to have with us Mr. Craig Boone, Divisional Comptroller, Grand Falls-Windsor Division of Abitibi; Mr. Wilmore Eddy, Power Superintendent; Mr. Roger Pike, Manager of Public Relations and Mr. William Furey, Woods Manager.

The Announcement

  • I am pleased to announce today that Newfoundland and Labrador Hydro has entered into an agreement in principle to purchase power from Abitibi Consolidated Incorporated.

  • This initiative will see the company install an additional generator, the Beeton Unit, in Grand Falls-Windsor and refurbish the aging generating station at Bishop�s Falls.

  • Newfoundland and Labrador Hydro will enter into a power purchase agreement with the company to buy most of the incremental energy to be generated from these projects.

  • With the Beeton Unit, Abitibi Consolidated will be able to capture more of the flow from the Exploits River that is not currently being utilized by existing generation. It will also provide a more efficient use of the river flow currently being utilized.

  • The generating station at Bishop�s Falls currently produces power at 50 cycles per second. This upgrade will see the system converted to the North American 60 cycle system.

  • Currently, generators at Bishop�s Falls transfer 50 cycle electricity through a transmission line to Grand Falls-Windsor. Some of this power is used at 50 cycle and the remainder is converted to 60 cycle power using the Grand Falls-Windsor frequency converter.

  • The upgrade will see all generators rewound for 60 cycle generation, therefore eliminating the need for the Grand Falls-Windsor frequency converter and making the system that much more efficient

  • The development of these initiatives, as well as the recently announced Granite Canal project, will greatly assist Newfoundland and Labrador Hydro in meeting its obligation to provide power for the island electricity grid.

  • The upgrades to the Beeton Unit and the generating station have the potential to generate approximately 32.5 Megawatts of additional electricity.

  • This project is a positive one for everyone. It is a good source of low cost, reliable energy for island consumers and it is an economic project that will contribute to the economic viability of the paper mill.

  • Through legislation introduced in the House of Assembly in 1999, government restored its ability to have Hydro carry out projects such as this that are in the best interest of all Newfoundlanders and Labradorians. As a result, government has exempted this project from the Electrical Power Control Act (EPCA) and the Public Utilities Board Oversight.

  • There are numerous alternative sources of energy which have been considered to meet Newfoundland and Labrador Hydro�s future requirements. It is a matter of selecting the appropriate mix of projects to provide that power in a way that minimizes costs and is based on technology, environmental concerns and available options.

  • Government believes that these projects are the most beneficial option available at this time.

Thank you.

Conclusion

  • We have a number of speakers today and I would ask the media to withhold any questions until we have heard from all speakers.

  • It is now my pleasure to ask Mr. Wells to make a few remarks.

  • I would now turn the proceedings over to Mr. Oldford.

  • I would now ask Mr. Aylward to say a few words.

  • I would now ask Ms. Thistle to say a few words.

  • We will now attempt to answer any questions you may have. Please feel free to direct your questions to any member seated at the head table.

2000 10 18

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