Newfoundland and Labrador Hydro says it only makes sense to break the Upper Churchill contract now, rather than wait until 2041.
Not only does money flow almost immediately, but NL Hydro can also give its customers firm assurances of timelines. President and CEO Jennifer Williams says it makes no sense to provide mining companies with increased capacity now because they first have to build the accompanying infrastructure. Likewise with Hydro – the transmission lines to Labrador West are at capacity so they have to be upgraded.
Critics believe that the province would have done better by waiting until the expiration date, 2041. But Williams says the formula will provide replacement cost.
“Newfoundland and Labrador Hydro can start having those conversations with our customers today because of the agreement, but without it, we cannot have those conversations with our customers. We could not even talk about having A! in Labrador,” says Williams.
