No vision

The Labrador MP is disappointed in the provinces vision for future energy development.

The province released its long-awaited energy plan, Focusing our Energy, Sept. 11, but according to Todd Russell, the plan held very little benefit for Labrador.

For one theres no long-term vision for Labrador development, where the unique energy needs of Labrador will be taken into consideration, he said. There are no new transmission lines being built in Labrador to supply either Labradors domestic needs or industrial needs. The only new transmission line that will go to a customer in this province is a transmission line that takes power out of Labrador.

The MP referred to the transmission link the province plans to build from the Lower Churchill project to the island to address environmental concerns at the Holyrood Generating Station by replacing Holyrood with electricity from the Lower Churchill development by 2015.

That doesnt leave me very happy, he stated. We have needs in Lake Melville where we still operate on gas turbines; theres a possibility for additional needs in Labrador West with expansion and potential for new mining developments and theres also needs on the coast of Labrador.

Mr. Russell was disappointed when he saw the coast will remain diesel powered as well.

Government committed to providing a subsidy for the isolated communities, but the MP stressed the province doesnt seem to believe theres a way for the coastal communities to grow.

Small industries sometimes have trouble meeting power requirements on the coast, he explained. I remember when small sawmills were being set up it was problematic to get the power. Theres nothing in this plan to address that and theres nothing to help the commercial users on the coast who pay exorbitant rates, except to say theyll review it in 2009 if they get sanctioned for the Lower Churchill. I dont think the coast is going to find much to smile about.

The plan is also lacking in addressing the Big Lands competitive advantage, Mr. Russell pointed out. He feels exporting the power from the Lower Churchill to the island will decrease Labradors ability to attract secondary and value-added processing.

Weve already seen opportunities go out of Labrador with Voiseys Bay, he said. If theres a future mining development, we have to look at secondary processing here, if theres natural gas off our shores we need to look at what can be done on the shore here in Labrador. There are talks of a developing wood industry in Lake Melville; we have to look at that. There are opportunities, but if we export all of our power, we have no competitive advantage in Labrador.

Mr. Russell also has concerns with the part of the plan pertaining to industrial development.

The transmission lines from Churchill Falls, Labrador West and Lake Melville are adequate, according to information within the energy report, but government conceded additional transmission will be required for new industrial development. It went on to say any new infrastructure will be constructed as needed, and will be funded through the Labrador rate system with costs allocated to customers who benefit.

Lead times are required to identify needs, complete the design and build new infrastructure. Government said Newfoundland and Labrador Hydro will work closely with potential developers to ensure costs are understood and timelines are addressed.

There are particular impacts for Labrador West in that, Mr. Russell stated. They say existing and future power contracts will be done on a market value basis. It can have impacts on Wabush and Labrador City when it comes time for renewal of the power contracts. It makes no mention of the unique circumstances to why there are preferential rates for industry in Labrador West; its because they signed over the rights to the Twin Falls project. I find that disturbing. It doesnt provide stability or security for development in Labrador West.

The MP applauds the Government of Newfoundland and Labrador for committing to training Labrador residents to work on the Lower Churchill project and is happy to see Labradorians will be given first opportunity to work on the development, but he noted it isnt enough.

He said theres a lot of grandiose language within the document stating Labrador will be the primary beneficiary of Lower Churchill project, but theres very little detail to back up the promise.

People living in Labrador believe, because this resource is in the heart of their territory, they should be the primary beneficiaries of the Lower Churchill development, Mr. Russell noted. Weve had to fight tooth and nail to get some benefit, certainly not the primary benefit, and I dont see much within this plan that makes me think were going to be the primary beneficiary now.

He said there needs to be more extensive consultation with community groups within Labrador, specifically aboriginal groups like the Labrador Metis Nation, and hed like to see more information disclosed concerning the newly announced Energy Corporation.

Almost all new developments on small hydroelectric or wind power, he said, are now going to be run through the Energy Corporation.

What is this new Energy Corporation going to look like? he wondered. How much input is going to take from the public? What are its obligations? We have to be very clear. This Crown corporation is going to have the vast majority of the clout when it comes to moving ahead and I think there are a number of questions surrounding that.

Mr. Russell plans to take his questions and concerns to the province and hopes to be able to work with government on a go-forward basis.

He said the energy plan certainly isnt carved in stone and he believes government needs to tweak the document to meet Labradors needs.

There are a number of pieces within this where theres a federal implication, the MP said. They talk about getting the transfer of 8.5 per cent of the Hibernia project back (from the federal government), theyre talking about loan guarantees or some kind of financial assistance from the federal government in the development of the Lower Churchill, they talk about the expanded mandate of the National Energy Board having some impact over interprovincial power transmission, they talk about an east to west grid, which could have some future impacts on energy projects like Lower Churchill, and theres also environmental assessments that take place that have a federal implication. There are many different areas from a federal perspective where I may be able to influence things.

While Mr. Russell isnt impressed with the energy plan, specifically how it relates to Labrador, hes glad theres a plan in place to provide clarity on the provinces direction.

The claritys not good from a Labrador perspective, but at least we know where we stand now, he said. We can take action from here. None of this illustrates to me that the policy regarding Labrador has fundamentally changed and that the provincial government is ready to put a lot of emphasis on increasing the benefits for the people of Labrador.