Natural Resources
April 2, 2014
Ensuring Reliability of the Provincial Electricity System
Provincial Government Outlines Plans for Independent Review of Electricity System
Today, the Provincial Government announced that it is moving ahead with its independent review of the electricity system for Newfoundland and Labrador.
“Over the past 50 years, our system and regulatory framework has been sufficient to meet the needs of our province. To meet our future needs, we are about to make significant changes to our energy system. With the completion of Muskrat Falls, the island grid will be connected with Labrador through the Labrador-Island Link transmission line and with Nova Scotia and North America through the Maritime Link transmission line. These connections will provide us with a path to sell excess power and a level of system reliability that we have never had. This change in our electricity system will require us to think differently about electricity in this province, including a broader regulatory framework which considers our interconnection to North America. This includes consideration of market rules, transmission access rules, and reliability oversight.”
- The Honourable Derrick Dalley, Minister of Natural Resources
The Muskrat Falls Project builds upon the vision and principles of the Energy Plan and will result in long-term benefits for the people of the province. When the project comes on line, the electricity supply will have 98 per cent renewable energy. As well, the island grid will no longer be isolated. Plans are already underway to ensure a smooth transition as the province moves from an isolated system to an interconnected system, and this includes the review of the electricity system in the province.
An expert consultant will be hired to review the current electricity system including generation, transmission, and distribution; system governance, legislation and regulation; and emerging trends and technologies in the North American electricity sector. The review will also assess the legislative and governance models in other jurisdictions, including the current model in Newfoundland and Labrador.
The request for proposals for the electricity review will be issued within the next few weeks through the Provincial Government’s regular process for procuring consultants. The expert consultant will be expected to have the engineering and technical expertise necessary to conduct a comprehensive review of the electricity system, particularly in the areas of system planning, reliability, and regulatory oversight.
Through sound fiscal management and responsible decisions, the Government of Newfoundland and Labrador is strengthening the business environment, encouraging the development of innovative industries and building a vibrant economy.
QUICK FACTS
- The Provincial Government is moving ahead with its independent review of the electricity system for Newfoundland and Labrador.
- The electricity system generates nearly 7,500 megawatts of electricity in the province and serves about 280,000 households and businesses located on the Island grid, the Labrador grid, the L’Anse au Loup grid, or one of the province’s 21 isolated diesel systems in coastal communities.
- Electricity supply and distribution in the province is primarily provided by two utilities - Newfoundland and Labrador Hydro and Newfoundland Power. Both utilities are regulated by the Board of Commissioners of Public Utilities.
- The PUB, their independent consultant, Liberty, as well as both utilities, are conducting valuable analysis regarding the recent supply disruptions. Government welcomes this input as it will inform the broader review by the independent consultant. The intent is to complement, not duplicate, these efforts.
- The Provincial Government encourages both utilities to act quickly on the findings of their internal review.
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Media contact:
Diana Quinton
Director of Communications
Department of Natural Resources
709-729-5282, 631-8155
dianaquinton@gov.nl.ca
2014 04 02 12:45 p.m.