Proposed deal to sell NB Power to Hydro-Quebec leaves Atlantic premiers divided

Atlantic premiers (from left), Nova Scotia's Darrell Dexter, P.E.I.'s Robert Ghiz, New Brunswick's Shawn Graham and Newfoundland's Danny Williams pose. THE CANADIAN PRESS/Kevin Bissett

THE CANADIAN PRESS

CHURCHILL FALLS, N.L. - Atlantic Canada's premiers emerged from a meeting Friday in Labrador divided over the proposed sale of New Brunswick's 89-year-old public power utility company to Hydro-Quebec.

The premiers of Nova Scotia and Newfoundland and Labrador want New Brunswick Premier Shawn Graham to guarantee their respective provinces the ability to ship power through his province in the future.

Graham and Premier Danny Williams have been at odds since the proposed sale of NB Power to Hydro-Quebec was announced three weeks ago.

Williams says the sale would give Quebec a "stranglehold" over power exports to the northeastern United States and would block his ability to ship energy from the proposed Lower Churchill hydroelectric project in Labrador - an argument Graham says is not true.

After the meeting, Williams and Nova Scotia Premier Darrell Dexter called on Graham to guarantee in writing that their provinces would be able to ship power through New Brunswick if the NB Power sale is finalized.

But Graham wouldn't commit to doing that.

Williams has vowed to fight the takeover before the federal Competition Bureau and possibly in court. He has often complained about the agreement struck in 1969 to develop the original Churchill Falls hydroelectric project, which he says has reaped $22 billion in revenues for Quebec compared to only $1 billion for his province.

But Graham, who faces a provincial election next year and is staking his political future on the deal, has fought back, questioning why Williams would want to stand in the way of prosperity for New Brunswick.

If approved, the tentative agreement would see Hydro-Quebec buy NB Power assets such as transmission lines, offices and most generation facilities, including the Point Lepreau nuclear power plant, for $4.75 billion. It would freeze residential power rates and lower those of industrial customers in New Brunswick while freeing the province of its debt-laden utility.

NB Power was created by New Brunswick's legislature in 1920.

Graham promised during the 2006 provincial election campaign to maintain the provincial Crown corporation as a public utility company, but he has since said the advantages of the deal are too great to miss.

Graham and Quebec Premier Jean Charest are aiming to finalize the deal by the end of March.