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N.L. still out of the loop on Atlantic Loop as Ottawa eyes $4.5B plan: Brazil

As the Maritime provinces and Ottawa squabble over a green-energy megaproject that rests at least partially on power from Muskrat Falls, it remains unclear where Newfoundland and Labrador stands amid the negotiations.

N.S., N.B., Que. all in talks with feds over hydroelectric sharing plan

A man with a microphone
Progressive Conservative Leader David Brazil said Friday he's still waiting to hear any details about Newfoundland and Labrador's involvement in the Atlantic Loop energy project. (Curtis Hicks/CBC)

As the Maritime provinces and Ottawa squabble over a green-energy megaproject that rests at least partially on power from Muskrat Falls, it remains unclear where Newfoundland and Labrador stands amid the negotiations.

After CBC News reported a federal funding package of $4.5 billion to help Nova Scotia and New Brunswick build the infrastructure needed to carry power from Labrador, Opposition leader David Brazil said Newfoundland and Labrador is being left out.

"We're hearing discussions going on and the only people not at the table are the representatives for Newfoundland and Labrador," Brazil said Friday.

"The premier is not there, the [energy] minister's not there. We're a bit confused. Is this an Atlantic Loop or is it a Maritime-Quebec Loop?"

The Atlantic Loop project would transport electricity from hydroelectric generating stations in Quebec and Labrador to Nova Scotia and New Brunswick.

But plans to build it have, so far, ostensibly not involved Newfoundland and Labrador — despite the province making up half the source of the power.

Brazil said he expected an update from the provincial government on whether the Atlantic Loop talks might affect the 2041 negotiations with Quebec over Churchill Falls, when a deal long considered a drubbing for Newfoundland and Labrador is up for renewal.

"We asked the premier to be open and transparent: 'Are you at the table? If you are, what's being discussed? Is this going to be beneficial to the people of this province?'" said Brazil.

$4.5B for Nova Scotia, New Brunswick

Brazil's criticism comes a day after CBC News reported a bulky funding package for the Maritimes.

"The government of Canada has proposed significant financial support to assist utilities and provinces in Nova Scotia and New Brunswick with advancing the Atlantic Loop," states a background document from last month provided to CBC News. 

That figure represents two-thirds of the overall capital cost.

Brazil says he's still not clear on whether the Atlantic Loop proposal will include a royalty regime for Newfoundland and Labrador, affect the Maritime Link or have anything to do with the proposed Gull Island project.

Water pours through the spillgates of the Muskrat Falls dam, whose reservoir is iced over and covered with snow.
The Muskrat Falls hydroelectric dam is supposed to provide some of the power in the proposed Atlantic Loop project. (Danny Arsenault/CBC)

"It's a multitude of unknowns," he said.

"My understanding is things like that are being discussed in the other provinces, but it's our asset. We should be front and centre at this, and we should be not only asking the questions, we should be demanding that nothing happens until a full dialogue is happening in this province."

The provincial government sent an emailed statement Friday afternoon in response to questions about Newfoundland and Labrador's involvement in Atlantic Loop talks.

It did not say whether the province was indeed at the table with Ottawa for them.

"Conversations around energy and energy transmission are ongoing, and Newfoundland and Labrador is engaged in these discussions," wrote Energy Department spokesperson Tansy Mundon.

The statement said Atlantic premiers met earlier this week to talk about "how the region is well positioned to be an energy powerhouse in the years ahead with new energy resources and export opportunities being developed.

"An effective provincial-federal partnership focused on economic growth and affordable energy costs is required," it said.

The statement also said the province is recently focused on the Maritime Link, through which power "is already being delivered from Newfoundland and Labrador to Nova Scotia."

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