2 Comments

Ed,

1.Can you say what the difference is between the NE US wholesale rates and the US industrial rate is? Residential rates is about double industrial rates mostly due to the extra distribution costs.

Is there a chain of US power companies that take a bite out of transmission after leaving PQ? Or is this all accounted in what is referred to as the HUB electricity wholesale price? Does the US industrial price equal the US wholesale price, or industrial vary depending on the location and demand etc? Average industrial prices in the US is public info.

2. At present, if not already contracted with HQ for the power, could CFLo transmit all or most of CF power over the 3- 735 kv lines into the NE USA or is there transmission constraints? Example, is existing lines from HQ to the US NE already contracted and loaded up by HQ power, to 2041 and beyond ? Is power constraints, if any, a major cost to overcome once 2041 arrives? In reality, even in 2041, can NL only export what HQ allows due to technicalities of restraints? Are we sort of in a choke hold on export ability?

3. Present cost of transmission to PQ on their lines in about 1 cent per kwh? if so , then to Boston from the CF plant maybe 1.5 cents per kwh?

4.Majotr power projects like CF and Hoover Dam , done in about 5 or 6 years after start of project. So why the rusk of 16 years to get this now signed? No agreement for another 5 or 6 years would seem plenty for HQ to address future needs. And wind power adds in blocks of 1000 MW can usually be online in about 2 years.

Trying to get an handle on the problems of transmitting all or most to CFs power to the NE USA, to compete with HQ on exports, and to value the export value presently, and estimate it into the future.

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Winston:

1. Don't know on the first question. On the chain of transmission, yes. Every jurisdiction takes its transportation costs out, hence the difficulty of shipping electricity over the border.

2. Since 1998, QC has operated an Open Access Transmission Tariff system thanks to US FERC rules. Since 2009, NL has exported electricity to Emera US through QC. The system works very well and would probably need added capacity to carry any significant amount of Labrador hydro to US markets. That's now moot since NL Hydro has apparently slipped the noose back around its neck of its own free will.

3. As I recall, the current block goes through the US for about 19 million. It does add something to the cost but on a per kwh basis I don;t know off the top of my head.

4. On CF there is no rush but there is some reason for haste that is not obvious. On Gull, I can see a need to get it done but then again, it's been sitting undeveloped since the 1960s. What's another decade?

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