The Honourable Danny Williams, Premier
of Newfoundland and Labrador, and the Honourable Darryl
Dexter, Premier of Nova Scotia, jointly released a
letter today that they have sent to the Honourable Shawn
Graham, Premier of New Brunswick. The letter addresses
concerns about the Memorandum of Understanding between
New Brunswick and Quebec and asks for a response
regarding open access for transmission.
"The previous statements made by the
Premier of New Brunswick are not sufficient to give us
confidence that reliable open access will be available
across New Brunswick to the Maine border after the deal
with Quebec is consummated," said Premier Williams.
"This situation requires clear and explicit
clarification and certainty."
"We are seeking assurances that the
best interests of Nova Scotia and the best opportunities
for our region are protected," said Premier Dexter. "It
is important that Premier Graham recognizes that an
agreement on a new interprovincial transmission line is
best for all our provinces."
- 30 -
Media contacts:
Letter:
December 2, 2009
Honourable Shawn Graham
Premier of New Brunswick
P.O. Box 6000
Fredericton, NB E3B 5H1
Dear Premier:
Atlantic Canadians are well served
when our provincial governments work together to gain
the best possible opportunities for the region as a
whole as well as the separate interests of each
province. This is particularly true in the energy field,
where better connections improve the economic
opportunities for each and all provinces in Atlantic
Canada It is why our two governments favour a
significant improvement in transmission capacity with
New England and thus the rest of North America.
We were pleased that the recent
Council of Atlantic Premiers meeting in Churchill Falls
provided an opportunity for all four premiers to discuss
potential impacts of the Memorandum of Understanding (MOU)
between the Government of Quebec and the Government of
New Brunswick.
We are writing to seek further
clarification and to make two specific requests.
We understand your position that New
Brunswick�s open access transmission tariff (OATT) will
continue to be offered in a fair and nondiscriminatory
manner after the transaction with Quebec is completed.
In this regard, you suggest that other Atlantic
Provinces will have the same open access to and through
the New Brunswick transmission system as we do today.
Assurances that the Federal Energy
Regulatory Commission (FERC) of the United States will
enforce the OATT and ensure non-discriminatory access to
New Brunswick�s transmission infrastructure do not allay
our concerns regarding open access. It is through New
Brunswick�s regulatory authorities, which have
jurisdiction in the Province, that this access can be
guaranteed and any issues resolved expeditiously. That
is why our governments seek an outline of the process
and mechanisms that New Brunswick will employ to
guarantee this access.
How will New Brunswick assure other
energy producers in New Brunswick and in the other
Atlantic provinces that they will have the same level of
open and non discriminatory access to the NB
transmission system (i.e., to existing surplus capacity
or existing capacity with appropriate system upgrades),
and to new energy corridors?
Reviewing the MOU, we are concerned
with the provisions that eliminate a truly independent
system operator, require conformity to the Quebec
regulatory system, create difficulty in changing these
laws in the future, and narrow the scope of the energy
hub from the region to the province. These provisions
may enable Hydro Quebec to hinder transmission
development, whether it is expansion of the existing
system or the development of a new corridor if it is not
seen to be in Hydro Quebec�s own interests.
Newfoundland and Labrador�s experience
of dealing with a system operator that is imbedded
within Hydro Quebec has show that this model can
significantly delay decisions (4 years or more) even
under an OATT process. It is this experience that leads
us to believe the proposed move by Hydro Quebec to take
over the NB System Operator (NBSO) role will likely lead
to similar outcomes.
I trust this information helps you to
understand in greater detail our concerns about the
future of open access in New Brunswick, and its effect
on development of Atlantic Canada�s renewable energy
resources. That is why we are asking the New Brunswick
government to:
1) finalize an agreement, by
February 2010, prior to signing of the
definitive agreements between New Brunswick and
Hydro Quebec, subject to normal environmental
assessment and permitting, to construct a new
interprovincial transmission line through New
Brunswick to the Maine/NB border, separate from
the existing NB grid; and
2) ensure that existing open
access applications will be handled by NBSO
under existing NB OATT rules until the process
is complete and service agreements have been
offered to Nalcor Energy or any other Atlantic
Canadian companies that may seek such access
before the signing of the definitive agreements
between New Brunswick and Hydro Quebec next
Spring (i.e., grandfathered and handled by NBSO
under current rules).
Thank you for your consideration on
this matter.