In recent news in Canada, the Honourable Andrew Furey, Premier of Newfoundland and Labrador, and the Honourable Andrew Parsons, Minister of Industry, Energy and Technology, announced that Nalcor Energy operations will be moving under Newfoundland and Labrador Hydro.
This aligns with the recommendations of the Board of Commissioners of Public Utilities (PUB) in its February 2020 report titled “Rate Mitigation Options and Impacts Muskrat Falls Project,” which recommended that the operations of Nalcor Energy Power Supply and Nalcor Energy Marketing be absorbed by Hydro. The 824-MW Muskrat Falls Project began producing power in September 2020.
Work has begun to review the existing corporate and governance structure and contractual arrangements for the Crown Corporation and its subsidiaries. This will include involvement of the Department of Industry, Energy and Technology and the Department of Justice and Public Safety, in collaboration with the chief executive officer of Nalcor Energy and Hydro as well as the boards of directors for Nalcor Energy and Hydro. Government also recently announced changes to compensation at the corporations.
The transition will be ongoing in the coming months.
The provincial government recently appointed Jennifer Williams as interim CEO of Nalcor Energy. That appointment and this announcement confirm this government’s intention that the corporation will evolve to a steady-state utility operation focused on cost reduction while providing safe, reliable electricity, and will focus on maximizing the economic potential of its energy portfolio.
“Our government committed to immediately begin an analysis and reorganization of Nalcor to streamline, remove duplication and save money. This action today is another step towards fulfilling this commitment. Government and Hydro will undertake a comprehensive analysis to ensure a successful transition. We will continue to update employees, stakeholders and the public about the process,” Furey said.
“I want the people of the province and our stakeholders to know that we have heard loud and clear that changes are required. Our employees will work hard to be the people’s utility that you can count on – providing safe, cost-effective, reliable electricity while harnessing energy opportunities,” Williams said.