Graham unveils new deal; critics react

Let’s make a deal!

New Deal negotiated for the sale of NB Power (Diane Cole image)

Just like you’d see on the popular game show, Shawn Graham is looking to upgrade his chances of selling NB Power with his new big deal.

On Wednesday, the New Brunswick Premier announced the sequel to his unpopular Memorandum of Understanding (MOU). Several portions of the first MOU were tweaked in hopes of better reception from residents.

There are many changes in the revised $3.2 billion deal. The biggest leaves control of New Brunswick’s 6,800 kilometres of transmission lines in the hands of the province. This was one of the most contentious issues when the first deal was proposed. Many believed giving control of this asset over to Hydro-Quebec would be detrimental to the economy. These transmission lines are considered to be the electric gateway to the States, so New Brunswickers have been adamantly opposed to handing that over to Quebec.

NB Power will also remain in control of the Coleson Cove and Belledune generating stations with this new deal. They will continue to generate power which will be sold back to the energy giant. Hydro-Quebec will also purchase seven hydro-electric facilities. Once the refurbishment is complete on the Point Lepreau Nuclear plant, it will also be turned over to the Quebec utility.

Another aspect of the original MOU which spawned furious debate and questioning were New Brunswick power rates. While the five year residential rate freeze will remain in the new deal, the rate cut for big business will be smaller than before. Businesses that will be using more than 5,000 Megawatts of energy per month will get a 23 per cent cut, and customers using between 750 and 5,000 megawatts will only receive at 15 per cent decrease in their rates.

The first Memorandum of Understanding was met with great disdain from residents across the province. Even some of Graham’s ministers spoke out against the deal earlier this week, saying they would not support it as it stood. But after Liberal ministers Kelly Lamrock and T.J Burke spoke up saying they wouldn’t stand behind the deal in the house, the deal was adjusted.

The day before this new plan was announced, the doors of St. Thomas University’s Kinsella Auditorium were opened to the public for a forum where guests discussed the merits and failings of the first deal to sell NB Power and its assets. So with whispers of the new changes floating through the air, the forum’s three speakers, William Marshall of WKM Energy Consultants, Gordon Weil of Standard Energy Company in Maine and Yves Gagnon, K.C Irving Chair in Sustainable Development from the Université de Moncton, voiced their predictions on the MOU 2.

Yves Gagnon talks about selling Lepreau to Hydro-Quebec and the new MOU.

Gordon Weil discusses the changes to transmission.

William Marshall on why it’s not such a bad deal.

Despite changes that echo demands from New Brunswickers, there are still many opposed to the idea of selling any portion of NB Power to Hydro-Quebec. The NO to Sale of NB Power group on Facebook is now swelling at nearly 29,000 members. Since Wednesday’s announcement of an amended deal, members have been flooding the group’s main page with comments that are primarily against it.

Connie Campbell writes ” Geeze, what’s wrong with S.Graham, the NB people stood together to say NO TO THE SALE OF NB POWER so what does he do, he changed it to sell a portion of it. NO MEANS NO MR. GRAHAM to any portion. We need to keep our own resources, maybe it’s time to review the people who are looking after our assets at NB Power!”

Louise Hache beckons for a similar plan of action. ” Will Premier Shawn Graham sell NB Power to HQ against the citizen voters wishes? It is a known fact that this is only a pre-election ploy to save face (and his butt) by reducing the province’s deficit, which, let’s face it, is the Premier’s doing in the first place. Bow down M. Graham and leave the throne to someone who knows what he’s doing. The longer you sit as Premier of NB, the more we are losing GOOD politicians M.Murphy, good doctors, nurses & teachers, etc.”

On Wednesday and Thursday, many residents were also quite angry because they weren’t able to see the actual document stating the changes to the MOU.  To tide these critics over, a summary of the new Memorandum of Understanding is available online at  www.lowerratesnb.ca/downloads/Summary-of-Agreement-on-Energy.pdf.

Transcript of clips can be found here

Short URL: http://www.newbrunswickbeacon.ca/?p=4095

Posted by Diane Cole on Jan 24, 2010. Filed under News, This Week's Edition. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.