The latest chapter to the ongoing saga comes with news both Newfoundland and Labrador and Nova Scotia have asked the federal government to spend $375 million on an underwater power cable to connect the two provinces.
This move, reported last week by The Chronicle-Herald in Halifax, would allow Newfoundland and Labrador to avoid sending power through Quebec. This would seemingly please Premier Danny Williams greatly.
Relations with Quebec over power matters have been contentious, of course, ever since this province signed off with Hydro-Québec on a power sale agreement for Churchill Falls that is seen to favour the treasury of Quebec’s public utility by a wide margin.
This came about because Quebec would not allow Newfoundland and Labrador to send its power through the francophone province unless it sold them the power. The bad deal has since cost this province billions of dollars.
The Lower Churchill deal is seen as a way to, at least partially, get something back for Newfoundland and Labrador.
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