Talk of Hydro-Québec dominates conference
Published Monday November 16th, 2009
BOSTON - When the world's largest hydroelectric utility moves to take over an unprecedented chunk of eastern Canada's energy grid, New England sits up and takes notice.
In fact, Hydro-Québec's proposed agreement with NB Power and talks with Prince Edward Island were top of mind at an energy conference between Canada and the U.S. northeast that wrapped up over the weekend.
At the chic Seaport Hotel on the Boston waterfront, hundreds of business and government leaders gathered over two days to discuss the region's top energy issues.
But Hydro-Québec dominated the agenda at the U.S.-Canada Energy Trade and Technology Conference both on and off the podium.
"The deal between Hydro-Québec and New Brunswick is definitely on the radar here," said John Norden, manager at ISO New England, a Westborough, Mass.-based non-profit organization that ensures the availability of reasonably priced electricity for the region's residents and businesses.
"I have heard some questions raised by the New England generators," he said. "They are concerned about competition and being boxed out of the market."
As Hydro-Québec gains greater control of the energy sector, the fear among smaller power generators on the northeastern seaboard is that they will be pushed out of the market.
But Norden said market regulators, such as the Federal Energy Regulatory Commission in the U.S. and regulatory bodies in Canada, would monitor any competition issues.
"There are backstops to handle those concerns," he said.
"Those agencies will handle any market issues that come up as a result of the expansion of Hydro-Québec.
"And from an operational perspective, we've been dealing with the folks at the New Brunswick System Operator and TransEnergy - which represents Hydro-Quebec in the U.S. - for decades," he said.
"So I think the transition would be smooth from that perspective if the deal in New Brunswick goes through."
Leonard Gold, president of the New England-Canada Business Council and a Boston-based lawyer, said the co-operation between neighbouring countries demonstrated at the conference was reassuring.
"But there are some power companies in New England that have concerns about the ramifications of having this mammoth power north of the border and whether they will be difficult to compete with in supplying electricity to U.S. and New England inhabitants," he said.
"But my sense is there is such an appetite for power in New England that Hydro-Québec's growth will inevitably benefit consumers," Gold said.
"And I think some of the speakers have made it clear there should not be a concern with competition because the market will control it."
Since NAFTA came into effect in the mid-1990s, opening up a trilateral trade block in North America, Gold said the increasing trade opportunities between Canada and the U.S. have been a boon for both economies.
Wayne O'Connor, chief operating officer of Halifax-based Emera Energy Services, said during a break between sessions that free trade has changed the energy landscape.
"We see a lot more U.S. companies active in Canada and a lot more Canadian companies active in the U.S. (like Emera, which owns Bangor Hydro as well as Nova Scotia Power)," he said.
O'Connor said he's attended the energy conference for over a decade and has seen a significant uptick in interest from top industry and political leaders.
"There has always been a good dialogue between New England and eastern Canada on trade and specifically on energy trade, but we've seen that increase in recent years," he said.
Jon Sorenson, a partner with Portland, Maine-based Competitive Energy Services, said opinions on the Hydro-Québec agreement with New Brunswick and the formal talks between Quebec and P.E.I. are still murky.
"I think people are talking a lot about it here at the conference but everyone is still digesting the details," he said.
"I think everybody supports new capacity growth in the area of energy, expansion of transmission and connectivity "¦ that's all positive."
Sorenson said from his point of view, the proposed deal between Quebec and New Brunswick, which would see Hydro-Québec acquire most of the assets of NB Power for $4.75 billion, is great in the short term.
"But how does it affect deregulation in the future and what happens when some plants get retired and they are accessing new power from
Hydro-Québec "¦ I would be more concerned about long-term prices."
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The people of Quebec are the masters of bigotry. They even write laws to enforce it. Don't you find that the least bit ironic in what you're saying?
We are selling a $10 billion utility. Approx $5 billion goes to pay off the debt and another $5 billion goes to rate cuts for industrial users only. How can anyone view this as a good deal for residential users?
The citizens of NB, the actual owners of NB Power, get very little. Corporate players with lobbyists and access to the halls of power seem to benefit the most from this sale. It's simply absurd. The government is selling out the citizens. This deal must be reworked or scrapped altogether.
A Quebec based monopoly will not be accountable to the people of New Brunswick.
Our only hope is to sell Graham. I dont expect any buyers to be interested but we will be better off if we give him away for free.
If they are smart that is, but seeing as how they are Liberals, that is an indication of a lack of intelligence, so it doesn't look too good from here. Yes, I stupidly voted Liberal in Grand Bay-Westfield (Jack Keir) last election, and I can tell you honestly, I voted that way because I couldn't stand the arrogance of Bernard Lord, so I bit my tongue and voted Liberal. I did however make it quite clear that I would NEVER support the Liberal Party federally. Now I will state that I will never again vote Liberal under any circumstances, as both federally and provincially they wouldn't know the truth if it bot them on the butt, and I now believe that in order to become a Liberal candidate, one must first pass a test to determine they are certified pathological liars.
I live in a province that is so indebted its credit rating was reduced.
I own a power utility that is near bankrupt. Many NBer's are becoming seniors, nearing retirement or trying to enter an old age home. Most cannot afford to retire or remain retired for long. Collectively, we don't have a strategy to provide for energy security in this province so how can we determine if selling NB power fits into our plans, we have no plan! no strategy exists to provide for sound energy policy.
We have work to do that liberal-tory rivalries don't address.
I think more inteligent disscussion could have been got if I had traveled into the States this weekend to listen to what was being said there out this sale of NB power to Quebec-Hydro. At least I wouldn't be inundated by how the dreaded french hordes where about to restart their revolution and take the minds of my children over.
Can this province sink lower, of course it can. All it would take is for people to sit down and want to discuss the meaning behind the ridiculus and the irrelevent.
Although large users pay 30% less initially to save jobs, they will get an increase every year. After five years, the to rates should be closer together.
To Viewer. Very few jobs will be lost. NB Power has 2700 employees. Attrition rate is app 5% YEAR OR app 125 employees. Some employees will be shifter to other jobs within the system. Others not wishing to move will be offered packadges
To John F. The contract for overseeing the refurbishment of Lepreau was given to AECL by the Lord Conservative government of which Alward, Keith Ashfield and Rodney Weston were members. You can't honestly blame Graham for that.