A1

Chris Morris
Telegraph-Journal

Stumble Upon

del.icio.us

Digg

Facebook

Print

Email

25 Comment(s)

FREDERICTON - As the New Brunswick government prepares to announce a seismic shift in its energy policy today, the premiers of Nova Scotia and Newfoundland and Labrador are warning of a major fracture in Atlantic relations.

News of a pending sale of NB Power to Hydro-Québec has set off alarm bells in the offices of premiers Danny Williams and Darrell Dexter who are concerned about the sudden arrival of the Quebec utility on the regional energy scene.

"I have, over the last number of months, been looking to promote Maritime interests," said Dexter, the recently-elected NDP premier of Nova Scotia.

"There is a difference between promoting Maritime interests and selling Maritime interests."

Williams said in a strongly-worded letter to Premier Shawn Graham on Wednesday that Newfoundland and Labrador has had bitter, first-hand experience with the "anti-competitive" and "obstructionist" Quebec utility.

"I have great fears and reservations about the stranglehold that Hydro-Québec could put in place over the Atlantic region and I hope that you share this concern given your extensive statements on your desire to see your province as an energy hub," Williams wrote in his letter to Graham.

Williams said he is disappointed that Graham did not make him aware of the seriousness of negotiations with Hydro-Québec, especially while there were talks under way about possible Atlantic energy sharing from the Lower Churchill Falls hydro development.

"Obviously, there would be significant implications to those negotiations if you do indeed proceed with a sale of NB Power," he said.

Williams has accused Hydro-Québec of trying to block plans to develop the Lower Churchill hydroelectric project and sell the energy from that development to the United States. He is also bitter about Quebec's huge share of profits from the 1969 contract to develop the Upper Churchill Falls project in Labrador.

"It is somewhat ironic when you consider that in an indirect way the profits from a Newfoundland and Labrador project would help finance Hydro-Québec's purchase of any New Brunswick assets."

Williams said he also is disappointed that Graham has indicated he would not attend next month's Council of Atlantic Premier's meeting, to be held in Churchill Falls.

"The primary objective was to discuss energy co-operation among Atlantic Provinces," the Newfoundland premier said.

Graham's office said the premier has a number of commitments in the legislature at the same time as the Atlantic premiers meeting. But spokesman Jordan O'Brien said Graham is still trying to find a way to attend the gathering.

Williams reiterated that he may consider a legal challenge or an appeal to the federal Competition Bureau to stop Hydro-Québec from moving into New Brunswick and controlling a key gateway to the U.S. energy market.

"I would reiterate that our province feels compelled to look into the potential of anti-competitive behaviour on the part of Hydro-Québec given the potential monopoly that could exist as the result of an agreement between them and NB Power."

Graham wrote in his earlier letter to Williams that New Brunswick transmission lines would continue to be open to any customer seeking transshipment rights.

But Williams is skeptical that would be the case.

"This is access, of course, to assets that would no longer be owned by New Brunswick, but Hydro-Québec, who have a track record of obstruction and delay."

Dexter said the proposed takeover of NB Power has important implications for regional co-operation in energy.

"All of these things are associated in one way or another with respect to Maritime co-operation," Dexter told reporters in Halifax.

"Obviously, anything that removes something as major as the ability to co-operate on energy policy from the equation should be a concern to everybody in the region."

Dexter said Nova Scotia is looking to develop new sources of energy including Bay of Fundy tidal power, which need access to export markets. It also hopes to become involved in corridor exports of Labrador hydro power.

- with files from The Canadian Press