Vancouver Forum: Atlantic premiers meet in Churchill Falls - Vancouver Forum

The meeting of the premiers from the four Atlantic provinces in Churchill Falls, Labrador, on Friday puts them in a setting that is at the heart of a growing dispute between the premiers of New Brunswick and Newfoundland and Labrador.

The session of the Council of Atlantic Premiers, which is to include talks about energy co-operation, is the first meeting between New Brunswick's Shawn Graham and Newfoundland and Labrador's Danny Williams since a war of words erupted between the two over the planned sale of NB Power to Hydro-Québec.

Graham said the $5-billion deal will erase NB Power's debt, reduce industrial power rates and freeze consumer rates for five years.

Williams has weighed in on the issue, writing a public letter to Graham that he copied to Nova Scotia Premier Darrell Dexter and P.E.I. Premier Robert Ghiz.

"I caution you, based on our experience with Hydro-Québec, that a short-term opportunity can turn into a long-term loss of significant magnitude, as they will most definitely find ways to recoup their investment and more from New Brunswickers who no longer control their energy destiny," Williams wrote.

Williams's disdain for Hydro-Québec dates back to the 65-year Upper Churchill contract, under which Hydro-Québec buys power at inexpensive rates from Newfoundland and Labrador and pockets the profits. Williams describes it as "lopsided and patently inequitable."

Although the market has changed dramatically since the contract was signed, Hydro-Québec has "prevented a fair distribution of benefits," he said.

In 2008, for example, the net value to Hydro-Québec for the Labrador project was $1.7 billion, but only $63 million has flowed to Newfoundland and Labrador, Williams said.

"It is somewhat ironic when you consider that in an indirect way the profits from a Newfoundland and Labrador project will help finance Hydro-Québec's purchase of any New Brunswick assets," he said.

Graham has called Williams's comments partisan politics, and said he'll use the meetings to correct the "misinformation" being spread about the planned sale of NB Power.

"You know, we are not giving up our energy sovereignty in the province of New Brunswick as Danny Williams says," Graham told reporters earlier this week. "We can continue to set out energy policy."

The premiers from Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador gathered Thursday night for a premiers-only meeting and a private dinner.

After meetings Friday morning, they will tour the Churchill Falls power plant.

http://www.cbc.ca/ca...ill-201109.html