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Natural Resources June 13, 2007 Province Moves to Optimize Water Management of Rivers The Provincial Government is moving to regulate the coordination of water management on provincial rivers to ensure hydroelectric facilities operating on the same river work together to optimize the value of the resource, and therefore the benefit to the province and power generators. The amendment to the Electrical Control Power Act (ECPA) provides a framework for the Public Utilities Board (PUB) to regulate the coordination of water management agreements. The amendment will ensure that delivery commitments under existing power contracts are honoured, including the 1969 power contract for the Upper Churchill. "The water management agreements will be subject to the approval of the PUB. If an agreement cannot be reached, the parties can apply to the PUB to resolve it," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "The amendment will apply to any provincial river where more than one hydroelectric development could occur." The amendment is being debated in the House of Assembly today and provides hydroelectric operators sharing a river system, as will be the case on the Churchill River with the Lower Churchill Project, with certainty over the coordination of water flow. It will provide a fair and transparent framework for the PUB to review water management agreements between operators to ensure the province�s objective of maximizing benefits is met. Water management agreements are standard on rivers with more than one operator. As stewards of the resource, government is taking its responsibility over this valuable resource seriously by ensuring optimal benefits for all parties from its development. "The time has come in the planning process of the Lower Churchill Project to introduce this legislation so we can continue to advance the project," said Minister Dunderdale. "This is about moving forward. These rivers belong to the people of Newfoundland and Labrador and it is the responsibility of the province to maintain control of its resources and ensure our water is regulated in such a way that optimizes the benefit to the province." Through this amendment, the needs of both the Churchill Falls facility and the Lower Churchill Project will be accommodated, as will the needs of any other hydroelectric developments in the province. With this amendment, the Provincial Government is ensuring that operators work together to reach an arrangement that is in the best interest of both facilities and the province. "We believe that a legislative framework is appropriate to provide a process for all operators and developers," the minister said. "In the case of the Lower Churchill, this allows us to have certainty over future water flow so we can move forward with the project." - 30 - Media contact:
BACKGROUNDER Water Management Hydroelectric facilities are designed to ensure that water flow is managed in a way that optimizes the value of the resource and generates power as efficiently as possible. Water flow is controlled and run through generators to: The scheduling or control of the water flow to achieve the optimal value from the resource is known as "water management" and requires coordinating water storage and flow through the facility. This coordination is a regular part of an operator�s production schedule. However, some watersheds may support more than one hydroelectric facility. In that event, production of all facilities must be coordinated to ensure that the interests of each operator are protected and the best use is made of the available water. These arrangements are known as water management or power coordination agreements. These agreements not only satisfy the operational objectives of each facility, but also provide certainty over the coordination of water flow into the future to secure project financing and customers. The Electrical Power Control Act is the central element of the province's electricity policy. It governs the management and operation of facilities for the production and distribution of power and the general management of the electricity sector. The amendment provides a framework for the Public Utilities Board (PUB) to regulate coordination of water management agreements. It will ensure that in cases where more than one operator shares a watercourse, water use is coordinated for the protection of each operator. With this amendment, the PUB will review water management agreements negotiated between parties to ensure the objects of the Act are met. If not, the PUB has the ability to modify or refuse the agreement. The PUB will also be able to impose the terms of a water management agreement if the operators cannot reach an arrangement. Rulings by the PUB will be binding on the parties. The provincial hydroelectric inventory lists many watercourses on the island and in Labrador containing multiple potential development sites. These undeveloped sites may eventually be developed by multiple developers who will require suitable conditions to move forward. 2007 06 13 12:20 p.m.
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