It seems to me that a so called escalator of 2 % (I guess to cover inflation) is actually a method to get power at a cheaper rate going forward, as inflation generally runs much higher on average.
You say with 2 % yearly increase , the 0.25 cent per kwh would be 0.5 cents in 2012. Industrial rates for power in the US has increased about 7 fold since this CF plant started to present time whereas the 0.25 to .5 increase in only a 2.5 fold increase.
And as to the the risk being engineered out (by a basket of rates 90 % tied to HQ rates), this is a scheme that actually engineers in risks, not engineering out. This is a Alice in Wonderland proposition, full of holes, and mainly ignoring the value of export market prices for electricity.
For the first time, I'm looking online at the HQ power grid map. Very Impressive.
Of interest, their total export connections is only about 8500 Mw(includes to the US, Ont and NB, (their peak load last night about 41,000 MW ) Most of CF power likely fed to Montreal area. Seems little capacity for transmission for large scale exports to the US, and by far, most all power is used in PQ, which is 100 % renewable hydro. They do show Labrador as different territory, and references the 1927 Privy Counsel boundary.
Of interest their domestic rate appears to be about 8.5 cents and industrial about 5.5 cents. Rates for the past 5 years increased only about 1 % a year (so if we are tied 90 % to that basket going forward, then that is the "Art of the Deal" by our team here, and pathetic.
Also the Emera Map, and obvious of the much further distance to the US via NB and Maine, as to transmission losses, why that scheme is so inefficient and idiotic to reach USA customers with large amounts of power.
Perhaps if you post those maps they would interest some of your readers.And to see from the transmission lines, each coloured different, how Emera actually gets our more reliable island power, not MFs power. We get the unreliable and super expensive MFs power. What crazy people promoted that scheme, and how many still at NL Hydro? Dumb and dumber, hey b'y.
Most CF electricity goes to the domestic market. But either way, it is crucial to their operations. This deal ignores every strategic strength of NL and QC weakness. It is astonishingly bad.
Say it ain't so, Joe.
It seems to me that a so called escalator of 2 % (I guess to cover inflation) is actually a method to get power at a cheaper rate going forward, as inflation generally runs much higher on average.
You say with 2 % yearly increase , the 0.25 cent per kwh would be 0.5 cents in 2012. Industrial rates for power in the US has increased about 7 fold since this CF plant started to present time whereas the 0.25 to .5 increase in only a 2.5 fold increase.
And as to the the risk being engineered out (by a basket of rates 90 % tied to HQ rates), this is a scheme that actually engineers in risks, not engineering out. This is a Alice in Wonderland proposition, full of holes, and mainly ignoring the value of export market prices for electricity.
It's math.
Basic math.
They are deluded.
For the first time, I'm looking online at the HQ power grid map. Very Impressive.
Of interest, their total export connections is only about 8500 Mw(includes to the US, Ont and NB, (their peak load last night about 41,000 MW ) Most of CF power likely fed to Montreal area. Seems little capacity for transmission for large scale exports to the US, and by far, most all power is used in PQ, which is 100 % renewable hydro. They do show Labrador as different territory, and references the 1927 Privy Counsel boundary.
Of interest their domestic rate appears to be about 8.5 cents and industrial about 5.5 cents. Rates for the past 5 years increased only about 1 % a year (so if we are tied 90 % to that basket going forward, then that is the "Art of the Deal" by our team here, and pathetic.
Also the Emera Map, and obvious of the much further distance to the US via NB and Maine, as to transmission losses, why that scheme is so inefficient and idiotic to reach USA customers with large amounts of power.
Perhaps if you post those maps they would interest some of your readers.And to see from the transmission lines, each coloured different, how Emera actually gets our more reliable island power, not MFs power. We get the unreliable and super expensive MFs power. What crazy people promoted that scheme, and how many still at NL Hydro? Dumb and dumber, hey b'y.
Most CF electricity goes to the domestic market. But either way, it is crucial to their operations. This deal ignores every strategic strength of NL and QC weakness. It is astonishingly bad.