CTVNEWS

N.B. weighing upgrades to benefit from Lower Churchill deal

The Canadian Press Published Friday, November 19, 2010 11:58AM EST

Newfoundland and Labrador Premier Danny Williams (left) signs the agreement to develop the Lower Churchill hydroelectric project in Labrador with help from Nova Scotia as Nova Scotia Premier Darrell Dexter, while Newfoundland and Labrador Natural Resources Minister Kathy Dunderdale look on at a news conference in St. John's, Thursday, Nov.18, 2010. (Rhonda Hayward / THE CANADIAN PRESS)

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FREDERICTON - New Brunswick's Crown utility will examine the province's transmission system to determine what upgrades would be needed to handle hydroelectricity from the proposed Lower Churchill project, Premier David Alward said Friday.

Alward said it was too early to say what his province would have to spend to boost transmission capacity if it wants to benefit from a new power deal between Nova Scotia and Newfoundland and Labrador.

"We've instructed NB Power and also Nova Scotia Power to start building ... the business case for it to determine whether it makes sense and what the next steps are," Alward said at a news conference with Nova Scotia Premier Darrell Dexter.

A $6.2-billion deal was signed Thursday that would see the construction of an 824-megawatt generating station at Muskrat Falls and transmission lines and subsea cables between Labrador, Newfoundland and Nova Scotia, if approved.

Dexter said he believes New Brunswick can benefit from the agreement as well. Following a meeting with Alward in Fredericton, Dexter said they believe it makes sense for Nova Scotia to export up to 330 megawatts of the new power for use in New Brunswick and possibly New England.

"Obviously we believe there is an advantage for us to move forward on these projects but the prudent thing to do, of course, is to make sure that the foundation of the business case is well explored," Dexter said.

Emera Inc., which owns Nova Scotia Power, said it hopes power will start flowing from the $2.9-billion Muskrat Falls generating station in 2017.

A transmission link from Labrador to Newfoundland would cost $2.1 billion, $600 million of which would be provided by Emera. That link would span 1,100 kilometres, including a 30-km subsea connection across the Strait of Belle Isle.

A 180-km subsea link between Cape Ray, N.L., to Lingan, N.S., would cost $1.2 billion, all funded by Emera.

The Lower Churchill agreement is subject to approval by regulators in Nova Scotia and Newfoundland and Labrador as well as the boards of directors for Emera and Nalcor Energy. Ottawa must also approve a compensation deal that would have to be ratified by the Innu people of Labrador.