Friday, October 30, 2009

Hydro-Québec’s purchase of NB Power raises serious concerns

This is not a municipal issue but it grabbed my attention as it highlights problems with governance in Canada. Are we a country, or just a bunch of provinces looking after their own interests?

This week news emerged about a deal between Québec and New Brunswick (Hydro-Québec buys NB Power, Ottawa Citizen, October 30, 2009). Québec Premier Jean Charest announced this $4.7 billion deal with New Brunswick for Hydro-Québec to take over most of NB Power’s assets as a move to get greater access to energy-hungry markets in the United States. Charest stated “We see in front of us a unique opportunity with what is happening in the United States. The Americans need clean renewable energy and they need lots of it. And guess what? We in Canada are the ones who can supply it.”

Well guess what else Premier Charest: other Canadian provinces need more clean renewable energy too! In particular Ontario is planning to spend a fortune in the coming years, so that it can shut down its coal fired generation plants. Controversially, in addition to exploiting new power generation from renewable sources, it also plans on spending a fortune for power from nuclear plants.

So why not consider doing a deal with Ontario before exporting all this clean energy? Free trade issues aside, Canada needs to cut back on pollution and the money Ontario could save by minimizing investment in new power generation could help get the province and the country out of deficit. Surely this huge hydro-electric energy resource should be used to maximize benefit to Canadians before reserves are sold to the U.S.

1 comment:

RealGrouchy said...

Are we a country, or just a bunch of provinces looking after their own interests?

While this question was probably intended as rhetorical, its suggestion is wrong.

Canada is a confederation of ten provinces (and three territories). Each is represented directly by the Queen, via the Governor General (federal) and the Lieutenants General (provincial), and each has its own flag.

Transfer payments aside, our government is not hierarchical (i.e. the federal government cannot veto decisions made by the provinces); the provinces and the federal government each have autonomous jurisdiction over their own areas, as described in the constitution.

So of the two options you present, since electricity is governed at the provincial level, when it comes to matters of electrical power, we would be "a bunch of provinces [looking after their own interests]."

- RG>