Minister Noel says blackout could help Lower Churchill negotiations

Mines and Energy Minister Walter Noel says last week�s power disruption, which affected parts of Ontario and the United States, could help negotiations for development of the Lower Churchill.

"The blackout reminded everyone of the region�s dependence on reliable energy sources, and the need for upgrading of the continental transmission system," said Minster Noel.  "The Lower Churchill river is one of the largest undeveloped energy resources in North America.  We believe that other jurisdictions will become more positive about the role it could play in satisfying growing demands for clean and affordable energy.  Future improvements in the transmission system could make it easier and more economic for us to supply customers.

"We are continuing efforts to develop the Lower Churchill, which could provide millions of dollars annually in revenues for our province.  We believe an agreement can be negotiated to maximize benefits for our people.  We will renew discussions with the Province of Ontario to determine whether they are interested in helping develop the Lower Churchill to meet their energy demands.  We will also continue discussions with the Province of Quebec and potential customers in the northeastern United States.  And we are talking with the federal government about the role they could play in helping make the project more beneficial for our province, while helping meet Canada�s climate change commitments.

"The effect of this blackout should not be exaggerated, but it could renew interest and discussion amongst potential consumers and partners.  We are continuing work towards a development agreement, but will only proceed on terms acceptable to the people of Newfoundland and Labrador."

Media contact: Darrell Mercer, Communications, (709) 729-5777

2003 08 19                                    2:40 p.m.