Ministers issue joint statement about proposed energy agreement with Hydro-Québec

I seen this joint release and had to comment. This is more of a rant than anything. I haven't researched any numbers, but then again, neither did the government

FREDERICTON (CNB) - The following joint statement was released today by Energy Minister Jack Keir and Business New Brunswick Minister Victor Boudreau about the proposed energy agreement between New Brunswick and Hydro-Québec:
Over the past few days there has been a great number of questions about what the proposed energy agreement between New Brunswick and Hydro-Québec would mean for New Brunswickers now and into the future.
Given the importance of this proposed partnership with Hydro-Québec, we feel it is important to set the record straight on a number of issues.
RESPONSE Ahh, Its’s not a partnership. Your SELLING the damn thing. They can do whatever the hell they want with it after.

Retaining control of energy policies
The suggestions that New Brunswick would give up control of its energy policies to Hydro-Québec are unfounded.
 Under this proposed agreement, the New Brunswick government would continue to be the body that makes decisions on matters such as new power developments.
RESPONSE New power developments will not happen. All the power will come from Quebec.

 The memorandum of understanding (MOU) outlines Hydro-Québec's commitment to work with the government and the private sector to strengthen New Brunswick's position as an energy hub through the construction of additional infrastructure to meet the energy demands of the northeast United States.
RESPONSE New infrastructure will be built just big enough to handle the load of NB plus what HQ wants to sell to the US. Not any bigger. There will be no room for anyone else to get on the grid. Effectively blocking competition, unless they want to pay the full cost of the transmission line plus some, then you have to do an EIA, gain right of ways, etc.

 New Brunswick would continue to have an open transmission network allowing for market competition.
 RESPONSE See above. Maybe for small amounts of power. Who says the tolling agreement won’t be so high that no one will be able to wheel through. The NB Power generators pay the same amount as everyone to get on NB Power transmission lines now. Under this MOU, a new Tolling Agreement will come into place. What was wrong with the current one. Not favourable enough for HQ.

 NB Power would still be regulated and overseen by the New Brunswick Energy and Utilities Board (EUB).
RESPONSE The government is overseen by the public now, but apparently that doesn’t do us any good.

 New Brunswick is the only Atlantic province that owns its power utility. Fortis owns Maritime Electric and Newfoundland Power; Emera owns Nova Scotia Power.
 RESPONSE A true statement. Congratulations on a first. But you might want to check their rates. You’ll at least see where our rates are headed. If the rate increases proposed by NB Power in the past, but rejected by the EUB at the request of the government, had gone through, NB Power could pretend to be run like a private business as well.

Future rate increases
The proposed agreement would provide New Brunswickers with lower power rates well beyond the first five years in which rates would be frozen, by limiting future increases to inflation and new generation needs.
 Inflation has grown by less than two per cent during the past 15 years, and is projected to remain this low for the next 20 years. Under the proposed agreement, Hydro-Québec would supply New Brunswick with enough power to meet the current needs of all residences and businesses.
RESPONSE You might want to check the money supply currently being injected in the Canadian economy through the Bank of Canada. It’s increasing much quicker than 2% per year. And inflation always follows the money supply.

 If New Brunswick's power demands grow beyond the 14 terawatt-hours provided for in the agreement, new power generation would go to the lowest bidder in a competitive process also overseen by the EUB.
 RESPONSE Yes it will. The lowest bidder will either be HYDRO Quebec, who can bid at whatever price is extremely profitable to them, or some other entity who’s price will a magnitude greater than what we pay now. The rates in all surrounding provinces and states are very high compared to ours. So in either case, there will a be a large price difference, that will get rolled into all rates.
 Under the status quo, the costs of new generation would still have to factored into power rates over and above the expected three per cent increases. However, under the proposed agreement, the price of meeting New Brunswick's existing power needs is substantially lower.
RESPONSE Expected rate increases of 3%. Where is that published publicly. I don’t see it in any NB Power annual reports forecasting future rate increases.

Rate savings for residential customers
Through this proposed partnership, $5 billion in rate savings would benefit New Brunswickers in every region of our province.
RESPONSE Is there a time frame on the rate savings. Is it part of the five years deal. Or is this extended out over 15 or 25 years. Because, as you can see in my earlier post, NB Power in province revenue barely exceeds this $5 billion over the next 5 ears. SO we all get free power?? YEAH!!!!

 60 per cent of the rate benefits would be directed to residential and small business customers.
 $2 billion in savings would go directly to residents; $2 billion would benefit industries; and $1 billion would help small businesses.
 Although New Brunswick's industries would receive a one-time reduction in rates, they would be subject to rate increases beginning next year, while residential customers would not see their rates increase for the next five years.
 RESPONSE Remember rates that exceed the heritage pool, will be billed a prevailing market rates. It Coleson Cove is put back on expensive oil, then the rate will be extremely high. Right now, that rate is reserved for selling into the US market, or for peak winter demand, or emergencies.

Lower rates
NB Power's financial position has made it difficult to control rate increases, and, without this proposed agreement, keeping rates affordable for customers would continue to be a challenge.
 Under the status quo, rates are expected to increase by at least three per cent annually during the next five years.
 RESPONSE Expected rate increases of 3%. Where is that published publicly. I don’t see it in any NB Power annual reports forecasting future rate increases.
 Cancelling those increases means that each New Brunswick household would pay much lower rates - at least 15 per cent lower - in the future, and receive savings worth nearly $1,400 over the next five years. New Brunswick households would each continue to save at least $465 each year.
 REWSPONSE Why not just lower the $50 million co-sign that NB Power pays to the NBGov. NBGOv is losing the money anyway. Where are these new tax dollars coming from.??