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Jones presents Labrador expectations for energy development during consultation process October 5, 2006 |
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Yvonne Jones, MHA for the District of Cartwright-L’Anse au Clair, presented
her expectations for energy development in Labrador during the energy
consultation process that visited Cartwright this past weekend. Jones
outlined several aspects that must be achieved if Labrador is to receive
their fair share of benefits from the region’s energy resources. "Currently, the primary source of power on the coast of Labrador is diesel and this has to change," said Ms. Jones. "Diesel generated power is very expensive and is very costly for consumers. This type of power is no longer acceptable or affordable for the residents, and puts rural communities at a disadvantage to compete for new business and infrastructure. Unfortunately, in many cases there is no available power for expansion of business or industry. At the present time there are a number of communities that force businesses to close during peak power periods because the supply of energy cannot meet the local demand. Businesses pay almost 20 cents a kilowatt hour for a lesser stable source of energy, double the rate paid by any other business in this province. "The current power is not only provided at a costly rate to consumers and business, but government subsidies on the service continue to grow every year. The subsidy to Newfoundland and Labrador hydro (NLH) is approximately $30 million annually and increasing each year. In 2004, NLH increased electricity rates in my district and has now filed another application to increase these rates again in 2007 by another 8 per cent." In her presentation, Jones asked government to explore the option of putting a transmission line to her district or potentially develop another hydro source. While Jones says using the Lower Churchill to supply affordable and cost-effective power to the region would be her preference, she believes there are a number of other rivers that would be suitable for hydro development that would reduce power costs in her area. She also asked government to explore the option of transmitting power from the Lac Robinson System in Quebec to the southeast coast. "This project would require running a transmission line from the Labrador Straits to the Coast. Through new technology, and with a new customer, there could be an option to upgrade the capacity of the Lac Robinson system to provide electricity to the whole district at a cheaper rate," said Ms. Jones. "I am also requesting that government look at uniform petroleum rates in the province. It is unfair that people in the North have to pay so much more for gasoline and home heating oil and these prices need to be streamlined. Government regulates alcohol and should do the same thing for petroleum products. I feel that the high price of gas and heating oil, combined with increased power rates, is placing tremendous hardship on people in our region. It appears government is negating its responsibility and it is unacceptable to ignore this situation any longer. "During my presentation, I also requested government take a lead on looking at the potential development of the 4.2 trillion cubic feet of natural gas off the Labrador coast. Very little information is known of Labrador’s five natural gas fields, however, if developed it could provide tremendous future stability for Labrador’s coastline. Natural gas technology has improved and I am requesting that government look at the concept of pipeline, compressed natural gas technology and liquified natural gas technology to see if any are feasible in Labrador. Other technology options should also be explored to see what potential may exist. There are companies that have sat on these reserves for 20 years, and now is the time to look at this development in a serious light." Jones says she is expecting the Provincial Energy plan to not only look at these issues seriously, but offer a plan of action to deal with the problems in her district and have timeframes attached. "The only way rural districts like mine can survive is if the government provides a fair playing field when it comes to transportation and affordable, available power. Government must also be prepared to seriously consider opportunities such as energy development and natural gas development in Labrador Coastal regions."
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