Ottawa is developing a new electricity strategy, but an extension of the rate mitigation plan for the $13.5-billion Muskrat Falls debt has not yet been discussed.
The extension of rate mitigation on the $13.5 billion debt owed on Muskrat Falls could be included in a new federal electricity strategy expected to be rolled out in the not-too-distant future.
The federal energy minister says the new strategy is being developed to make sure the expansion of energy grids across the country will be done “in an affordable way.”
Minister Tim Hodgson was responding to questions about rate mitigation on Muskrat Falls which comes to an end in 2030.
(Muskrat Falls generating station under construction. File photo courtesy Nalcor.)
Ottawa reached a $5.2 billion rate mitigation deal with the provincial government in 2024 to cap electricity rate increases at 2.25 per cent through to 2030.
Hodgson says an extension of the rate mitigation deal is not something he’s discussed with his provincial counterpart at this time.
“That’s something we’ll have to talk about in the future, that’s not something I’ve been talking about with Minister Parrott right now.”
He says the electricity strategy will be focused on “working in partnership with the provinces and territories to make sure the expansion of our grids across this country is done in an affordable way, and I’m sure that agreement will get dealt with in that context.”
