Got 20 minutes?

Not a lot to post. Busy with the kids and Christmas the past few days. I've been try to see the big picture. But there's a lot of crap to clean off the windsheild and my wipers can't keep up.

Check out the video posted on the CBC. Tery Seguin interviews Jack Kier, Aylward, NBP, and the Green Party at the same table. And they were nice to each other. It's about 20 minutes long.

http://www.cbc.ca/video/news/player.html?clipid=1355313047

The end of cheap power?? Seems since the signing, Charest may want to rise power rates to offset his $4 billion deficit. Goodbye to the great industrial rates savings. Man, are they ever lining us up to pick our pockets. NB is getting suckered big time on this sale.

http://www2.macleans.ca/2009/10/22/the-end-of-cheap-power-in-quebec/

Something Keir eludes to is the timing. I think the 3% rate hike is a smokescreen for a bigger, darker picture. I still think HQ has a cash flow issue of sorts. Mind you, it's a cash flow issue most wouldn't mind having, but a reduction in cash flow for HQ with their capital intensive hydro stations is not good. Natural gas power stations in the US have been using the depressed gas prices to put lots of power on the grid a decent price lately. Cutting HQ's profits. The shuttering of a few industrial customers in Quebec has left HQ with an excess of generation. (See previous posts on that subject.) That, coupled with the agressive expansion plans tailored to the currently less profitable export market (see link) has left them scrambling for a good base rate source of revenue to cover off their investments.

http://finance.yahoo.com/news/Fitch-Rates-HydroQuebecs-bw-1426914954.html?x=0&.v=1

"Since 2008, HQ has embarked on a major, roughly $25 billion capital program (through 2013), which includes the construction of several large hydropower projects, transmission additions and distribution system upgrades. The projects are in varying stages of development and continue to meet important milestones and commissioning dates. By 2013, HQ is projecting to have another 1,000 megawatts (MW) of new hydro-generating capacity on-line (compared to existing capacity of 36,429MW for 2008). While a portion of the new generation is needed to meet modest native load growth, an increasing proportion will be used to increase exported power sales - a credit concern, as off-system revenues are more volatile and fluctuate based on electricity market prices. On a positive note, given HQ's extensive reservoir capacity and its mainly 'green' (non-carbon emitting) power resources, its power resources are likely to remain in demand, both inside and outside of Quebec for the foreseeable future, particularly as the U.S. and Canada increasingly focus on attaining renewable and carbon emission reduction environmental targets. "
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.I had heard that the first offer by Quebec to Graham and company was rejected, but Quebec came back to the table with more money. Voila, the deal gets signed. With that, I'll leave you to draw your own conclusions. Goodnite folks. The time on my blog is off by 4 hours BTW, need to fix that.