Executive Council June 27, 2007
Province Signs MOU with Rhode Island
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The merits of a long-term purchase and sale agreement
for the export of Lower Churchill power to Rhode Island will be assessed
with the signing today of a Memorandum of Understanding (MOU) between
Newfoundland and Labrador and the State of Rhode Island. The MOU was announced by the Honourable Danny
Williams, Premier of Newfoundland and Labrador, and Donald L. Carcieri,
Governor of Rhode Island, during the Conference of New England Governors
and Eastern Canadian Premiers in Prince Edward Island. "Our jurisdictions have entered into an MOU to explore
the merits of exporting our hydro power to meet their energy needs. This
is a mutually beneficial arrangement for our two jurisdictions," Premier
Williams said. "It is clear that our clean, renewable hydro power is a
sought after commodity for a continent in need of
environmentally-friendly power sources to help reduce greenhouse gases
emissions. Rhode Island is a leader among the New England states in this
area and they have recognized the potential of our hydro resource in
assisting them meet their goals." The MOU provides for the analysis and assessment of a
potential power purchase of up to 200 megawatts of electricity by the
year 2015. Newfoundland and Labrador Hydro, on behalf of the Government
of Newfoundland and Labrador, will enter into discussions with the State
of Rhode Island. "The State of Rhode Island is interested in exploring
new supplies of clean and renewable power to meet the energy needs of
our residents," Governor Carcieri said. "We have taken a significant
step today toward securing a new source of power that is in step with
our Five-Point Energy Agenda. I thank Premier Williams for his personal
commitment to making this happen." The MOU institutes a two-phase process to explore a
possible arrangement for the sale and purchase of power. The first part
of the process is a six-month mutual assessment of the merits of
long-term sale and purchase agreement, as well as the development of an
action plan to address any technical, regulatory and statutory
requirements of the transaction. Upon completion of Phase I, the parties
may enter Phase 2 negotiations for a binding agreement on the sale and
purchase of power. "Today marks another significant step in the
development of the Lower Churchill Project," Premier Williams said.
"Identifying markets for Lower Churchill power will strengthen our
position in securing the financing for the project. The signing of the
MOU with our friends from Rhode Island is part of our commitment to
ensuring long-term benefit from our resources for the people of Labrador
and Newfoundland." The Lower Churchill Project includes the development
of two hydroelectric sites on the lower Churchill River � Gull Island
and Muskrat Falls. The potential energy to be generated from the
proposed 2,824 MW development is enough electricity to power close to
1.5 million homes and could displace over 16 mega tonnes of carbon
dioxide emissions every year, equivalent to the annual greenhouse gas
emissions from 3.2 million automobiles. -30-
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