Holyrood's uncertain fate is impacting Nalcor's cost-reduction strategy

Nalcor is hoping to save millions by cutting dozens of full-time equivalent positions at the Crown corporation over the next three years, but that strategy may be derailed if the planned closure of the Holyrood thermal generating station is delayed.

Nalcor's top human resources executive, Michael Roberts, explained during a hearing before the Public Utilities Board in St. John's on Wednesday that savings of between $15 million and $20 million can be achieved by the end of 2022 if the corporation can trim 160-plus FTEs from its workforce.

"We are on a path towards that," Roberts told the PUB as it looks at how to keep electricity rates affordable in the Muskrat Falls era.

Though the savings are only a small amount in the big picture of rate mitigation, Nalcor says they are achievable as efforts to commission Muskrat Falls enter the homestretch, with full commercial power scheduled to be reached by the end of next year.

But without clear answers about the future of the aging and fuel-guzzling Holyrood plant, those targets still have a big question mark.

Holyrood was put in service in 1969, and has the capacity to produce nearly 500 megawatts of electricity. It is an important source of energy during peak electricity demand, and was scheduled to be closed once the Lower Churchill project was completed.

But with a reliability and resource adequacy study now underway, and strong opinions in some quarters that Holyrood must be maintained, "we're not assuming anything," said Roberts.

• Nalcor continues to hire as government cuts jobs

If Nalcor is ordered to keep the generators turning at Holyrood, its cost-reduction strategy could be cast into serious doubt because it's built largely around job reductions at the thermal plant.

"Our plan has to remain flexible and nimble," Roberts explained.

Numbers presented by Roberts also demonstrated how FTE numbers grew at Nalcor under the leadership of CEO Stan Marshall.

Immediately after his arrival three years ago, Marshall undertook a controversial shakeup at the corporation, which was in a Muskrat-fuelled crisis at the time.

And while other government departments, agencies and boards were being told by a cash-strapped government to slash jobs, Marshall began hiring, with FTE numbers growing by nearly 200 since his arrival.

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