Emera Inc. (EMA.T) has reached an agreement with Canada's
easternmost province of Newfoundland and Labrador to develop the
Lower Churchill hydroelectric project, which could result in a
total investment by all parties involved of C$6.2 billion.
Under the deal, Nalcor, Newfoundland and Labrador's Crown-owned
energy corporation, will build generating facilities at Muskrat
Falls at cost of C$2.9 billion. Emera will invest about C$600
million of the total C$2.1 billion cost of building a transmission
link from Labrador to the island of Newfoundland and will fund the
total C$1.2 billion cost of building the Martime Link, a subsea
transmission link connecting Newfoundland to Nova Scotia.
The Emera and Nalcor deal will include the creation of a joint
regulated transmission utility in Newfoundland and Labrador to be
owned 71% by Nalcor and 29% by Emera.
The deal is subject to a number of conditions, including final
approval of the boards of Emera and Nalcor Energy and regulatory
approvals in Nova Scotia and Newfoundland and Labrador.
Nalcor has been in talks with Emera and the Maritime provinces
about a plan to move hydroelectric power from the Churchill River
in Labrador through Newfoundland and into Nova Scotia.
-By Judy McKinnon, Dow Jones Newswires; 416-306-2100;
judy.mckinnon@dowjones.com
