Tuesday, April 2, 2013

MUSKRAT FALLS ENJOYS HUGE SUPPORT: CRA


Corporate Research Associates is reporting that support for the Muskrat Falls hydroelectric project remains high.
63% of those surveyed support the $7.4 billion project to build a dam, power station and two sub sea-links.
Despite the polls, I am still concerned about markets in the short term and the fact that ratepayers are on the hook for cost escalations. When the cost jumps by 25-50%, who pays?

That said I believe a nation that controls it’s energy future, controls it’s economic future. Energy attracts manufacturing. Manufacturing creates jobs. Jobs keep the economy humming.

The Chinese know it. Follow that nation's buying spree and investment patterns. The United States has long known it - hence the race to ratchet down its dependence on foreign oil and gas.

Offering very competitive energy prices for everything from mining, smelting, on-land aquaculture to agriculture would appear to be where our future may lay.

The project has its proponents. Last fall, the Atlantic Institute for Market Studies published a very supportive independent,non-partisan commentary on the proposed Muskrat Falls hydro-electric and transmission development.

That study indicated that the project will be a benefit to the province. He argued that the Provincial government was not as transparent as it should be. He also suggests a number of checks and balances that he feels would reduce the chances of the project becoming a financial burden, including  regulatory reviews that go beyond the limited report requested previously from the province’s Board of Commissioners of Public Utilities.

One thing is for certain, the CRA Poll shows that the Provincial Government appears to continue to have the public’s support for the controversial project.

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