Impact: Traffic would be reduced if Belledune Generating Station were to close: CEO Doucett

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James Mallory
the Northern Light

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BELLEDUNE - The proposed sale of NB Power to Hydro-Quebec could have far-reaching consequences for the Port of Belledune if it ultimately means the closure of the coal-burning power plant in Belledune.

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Rayburn Doucett

"There will be a drastic effect on us if the Belledune Generating Station closes because 65 per cent of our business comes from NB Power in Belledune. We've got a lot riding on this," said Rayburn Doucett, president and chief executive officer of the Belledune Port Authority.

Last week, the Province of New Brunswick signed a memorandum of understanding setting out the terms and conditions for the sale of NB Power to Hydro-Quebec. Under the agreement, Hydro-Québec would acquire most of the assets of NB Power and in return New Brunswick would benefit from lower rates and the provincial debt would be reduced by $4.75 billion.

However, the deal would see the Dalhousie Generating Station close next year because it will be too costly to run. New Brunswick will retain control of facilities in Belledune and Coleson Cove near Saint John but Hydro-Quebec can order them shut them down with 12 months' notice.

Doucett is troubled because Belledune is a coal-burning plant, and Hydro-Quebec is no longer focused on fossil-fuel facilities, in view of environmental concerns.

"Because of Quebec's terms of reference, they will not touch fossil fuels units anymore and CO2 and all this other stuff," said Doucett. "They're going for hydro and trying to stay away from oil and coal and all the others. New Brunswick is keeping (the Belledune and Coleson Cove facilities) but Quebec can tell them in one year's time, 'It's down.' "

Energy Minister Jack Keir told the Telegraph-Journal newspaper last week that the Dalhousie plant would ultimately be closing with or without the Quebec deal, because of cost concerns, but there should be no uncertainty over the Belledune Generating Station's future.

"Belledune and Coleson Cove have to continue to run, because they will be used to meet the peaks in the winter months."

Added the Minister in his interview with the Telegraph Journal: "Belledune will certainly continue on either until the inefficiencies make it not worth operating, or the government imposes a carbon tax or a cap-and-trade system."

The Dalhousie Generating Station employs about 100 employees while in Belledune, 124 people work in the NB Power coal-fired plant.

Doucett said the Belledune port is already going to be negatively affected by the closure of Dalhousie's plant because the port ships gypsum from there.

He noted that the port has diversified its clientele in recent years but losing NB Power's Belledune Generating Station as a client would nonetheless be devastating.

"We were dependent on (NB Power) about 85 per cent four years ago and now we're down to about 65 per cent. And all this infrastructure we're putting in will help us diversify...but it was nice to have that base load that we depend on and the revenue coming in from it," said Doucett.

The port CEO is no stranger to the workings of NB Power: when he was the Liberal Member of the Legislative Assembly for Restigouche-East 20 years ago, he served as chairman of the New Brunswick Electric Power Commission. In fact, it was under his watch that the Belledune Generating Station project was announced back in 1989.

He told The Northern Light that the Belledune Generating Station was built on time and on budget and is running quite efficiently, and has even won awards for performance.

"It's disheartening and I'm talking for Belledune and all the work the people have put into Belledune the past few years have been very positive"¦ All of a sudden, we find they're going to take the biggest asset we have and probably mothball it or shut it off."

Doucett said the massive costs related to the troubled refurbishment of the Point Lepreau nuclear plant near Saint John has put the province in a tough financial bind and a solution is needed. However, Doucett said that solution does not lie in a pact with Quebec.

"I think there's other options the government should look at. The main problem you've got from NB Power is the debt from Lepreau...If they want to make a deal with the United States or make a deal with the rest of Atlantic Canada, they could probably make a deal here to get that debt cleared off.

"I'm sure something could be worked out but this here "¦ is the cost of how many jobs"¦ Because someone gave us a billion dollars, we're going to lay a bunch of people off. It's a complete reversal."