“Given the analysis that MHI has conducted based on the data and reports provided by Nalcor, MHI recommends that Nalcor pursue the Interconnected Island option as the least cost alternative to meet the expected electrical load in Newfoundland and Labrador.”
Muskrat Falls is the lowest-cost option to meet our energy requirements, and will help keep rates for electricity consumers amongst the lowest in Canada. The hydroelectric power generated by Muskrat Falls will provide long-term stable electricity rates for homes and businesses in Newfoundland and Labrador.
Hydro projects have a long-term life with low operating and maintenance costs that benefit electricity consumers across many generations. The benefits of clean, renewable hydropower can be seen in other jurisdictions with low stable electricity rates such as British Columba, Manitoba and Quebec.
Electricity rates between 2001 and 2011 for the average ratepayer on the island have increased 32% or approximately $45 per month, reflecting an annual average increase of approximately 2.8%.
Electricity rates between 2011 and 2016 for the average ratepayer on the island are projected to increase by an additional 16% or approximately $30 per month. These increases have nothing to do with the development of Muskrat Falls.
Rising oil prices and the increasing demand for power mean that electricity rates are increasing. Rate increases we are experiencing today have nothing to do with the development of Muskrat Falls, and are tied to the ever changing oil prices and our reliance on Holyrood and oil to generate power.
With power from Muskrat Falls, electricity rates will stabilize, increasing just over 1% per year between 2016 and 2030 for residential customers. By comparison, if we continue relying on oil to generate electricity, average bills for homeowners are projected to increasing just over 2% per year. From 2016 to 2030 without Muskrat Falls, electricity rates for the average ratepayer would increase by 38% or approximately $82 per month. Over the same period, with Muskrat Falls, electricity rates for the average ratepayer will increase by 18% or approximately $38 per month.
A decision to proceed with the development of Muskrat Falls would stabilize our electricity rates, and help ensure rates remain affordable and among the lowest in the country.