Where are the facts ?

Posted today on other places on the world wide web.

11.24.2009 at 6:29 pm | Immediate costs to taxpayers :

Upon taking a look at the MOU, and the 2009 NB Power financial statement published last week on their website, I have the following observations.

It’s easy to see the short term costs that the Government of NB will have to assume.

1. $20 million to decommission Dalhousie (NB Power annual report shows all 5 fossil stations at $124M)
2. March 31, 2009 NB Power liabilities $5.19 Billion difference from selling price (5.19-4.75) = $ 440 million
3. Annual revenue paid by NB Power to NB Government = Average of $100 million – verified by Auditor General
4. Costs of Pt Lepreau from April 1, 2010 to Feb 1, 2011 = $110 Million. This is shown as $10 million a month from page 68 of 2009 NB Power financial statement.
5. Loss of taxes collected from no 3% rate increase during first 5 years Residential portion only = $24 million dollars
6. Estimated tax loss from Industrial customers = 8% part of GST of $ 79 million in first year = 6 million. Lets say about 1 million less per year to year 5. = 6+5+4+3+2 = 20 million total over first five years

Total cost to TAXPAYERS from day 1 and over first five years of rate freeze = $1.11 Billion dollars.

It will be more, because NB Power will accrue more debt refurbishing Lepreau during 2009/2010 fiscal year, that could add another $400 million to the debt before anything is signed.
Lepreau replacement power cost is $16 million per month (Again shown on page 68 of financial statement) that is accruing now (16 x 12 = 192 million for 2009/2010 before agreement signed? This could be added to the $1.11 billion.

To Shawn and Jack and James at GNB – Where are these tax dollars being made up? Where is your business plan? Where is the written commitment from industry players who say they are coming to invest in the province to make up for this loss of revenue?

Where are the facts?