It’s still early in the review by the Public Utilities Board (PUB) of ways to keep power rates manageable in Newfoundland and Labrador. The review is scheduled to continue into 2020.
“What we have here is the commencement of a process,” Consumer Advocate Dennis Browne told The Telegram Thursday.
It was the day after the release of two new consultant reports, looking at available options and the financial burden of the $12.7-billion Muskrat Falls hydroelectric project.
The interim reports from Liberty Consulting Group and Synapse Energy Economics offer preliminary findings, with recommendations ranging from the addition of more charging stations for electric vehicles to possible job cuts at Nalcor Energy.
Browne’s office has been out front with calls for more aggressive energy conservation programs and demand-management measures. He agrees with the deeper dive into Nalcor Energy, and not just at the regulated Newfoundland and Labrador Hydro.
But he said the formal arrangements around Muskrat Falls project financing are also a key aspect to be addressed. He noted the stipulation that local ratepayers cover the cost of the hydro project.
“We have to see what we can do for ourselves, then we have to determine what financing may be needed to deal with the situation long-term,” he said.
Progressive Conservative Leader Ches Crosbie said it’s clear to him the federal government has to be involved in the rate mitigation effort. He said the provincial and federal Liberals should make a statement now to the public about whether or not specific talks about Muskrat Falls financing have started in earnest.
Crosbie didn’t call for every detail of the provincial-federal exchanges, but wants some information to be conveyed.
“We can’t afford to play clownish games over this,” he said Thursday.
“What is the program of action? Are you talking, or are you not? And if you are, which provinces are involved in the talks? The public has a right to know this stuff,” he said.
For the process ongoing at the PUB, for which the reports were filed, Crosbie said he is not certain yet if he will make a written submission, or otherwise seek to participate.
In his year-end interview with The Telegram, Premier Dwight Ball said there is not much he can say at this point about discussions on mitigating the cost of power, but he has said the federal government is involved in the issue.
Meanwhile, Newfoundland Power is still reviewing the newest reports to the PUB. A statement to The Telegram said the utility understands customers are concerned with the uncertainty surrounding future rates.
The utility was asked for a specific comment on the idea of Newfoundland Power taking over work of the retail arm of Newfoundland and Labrador Hydro, as one consultant has suggested for consideration.
“Newfoundland Power would be interested in exploring any opportunity or option that will ultimately benefit our customers, (and) this includes a possible change in ‘operational responsibilities or ownership of some portion or all of Hydro’s retail operations,’” the response stated, including the quote provided from the Synapse report.
Newfoundland Power is expected to provide a submission to the PUB, and president Peter Alteen — at the separate Muskrat Falls Inquiry proceedings — made it clear the company wants to be a central player as the review of options proceeds.
Nalcor Energy is expected to file a response to the reports by Jan. 11.
Browne said the Office of the Consumer Advocate will file a written response in roughly the next two weeks.
Public hearings for the PUB review are expected in the fall of 2019. A final report from the PUB is due to the government by Jan. 31, 2020.
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