Nalcor Energy turns to PUB for water management agreement

Nalcor Energy is asking the Public Utilities Board to establish a water management agreement between Nalcor and the Churchill Falls Corp.

The request comes after several months of negotiations. The negotiating teams for both Nalcor and Churchill Falls submitted a proposed agreement to the Churchill Board of Directors in September 2009, but the board rejected the proposal. 

A water management agreement is required for the 2,824-MW Lower Churchill hydroelectric project on the lower Churchill River, Nalcor said. Under Canadian law, hydroelectric operators can ask the Public Utilities Board to establish a water management agreement when negotiations between the operators fail.

Nalcor filed its application for a water management agreement with the Public Utilities Board on Nov. 10, 2009. Churchill Falls must submit its own plan within 30 days from the application date.

In 2008, three energy companies, Newfoundland and Labrador Hydro, Emera Inc., and Emera subsidiary Nova Scotia Power Inc., announced they would explore options for exporting power from the proposed Lower Churchill project to Canada’s Maritime provinces, including Nova Scotia, and to New England in the United States. (HydroWorld 1/15/08).

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