Skeptical Nova Scotia tells Ottawa it wants to see the money for Atlantic Loop hydro

Nova Scotia's Progressive Conservative government reacted with sour skepticism Wednesday to the latest federal promises to fund the proposed Atlantic Loop electricity corridor.

"I would say I'm not optimistic about the Atlantic Loop," Premier Tim Houston told reporters at Province House.

"I'm not investing a lot of time into it until I understand that the federal government is there in a meaningful way to support the ratepayers and I haven't seen that."

The mega project would upgrade electrical transmission lines between Nova Scotia, New Brunswick and Quebec to import hydro into Maritime provinces that currently rely mostly on fossil fuels for electricity. Their coal-fired generating plants must close by 2030.

"I have significant questions about the Loop. Whether the energy is available from Quebec or the timeline of it. So I'm not too sure. We'll look at what's possible. If that's something that's possible then you know OK, but if it's not then we'll look at alternatives," an underwhelmed Houston said.

The premier's remarks were in marked contrast to the upbeat assessment provided the day before in Halifax by federal Infrastructure Minister Dominic LeBlanc.

Minister says negotiations underway

LeBlanc predicted an agreement in principle to proceed by mid-year.

He told CBC News detailed "sensitive commercial conversations" were underway between the three provinces, their utilities and federal negotiator Serge Dupont, a former senior civil servant hired to represent Ottawa in the negotiations.

"I go by what Serge Dupont and officials from the Privy Council Office who are involved in these conversations tell me and I'm not pessimistic at all. Serge Dupont reports to us that his conversations with Emera [parent company of Nova Scotia Power] and with the utilities in New Brunswick and in Quebec are very encouraging. So I'm very optimistic," LeBlanc said.

Money in the federal budget

Last week's federal budget said Ottawa's contribution will come from $20 billion allocated to the Canada Infrastructure Bank for green electricity infrastructure across Canada "including for major projects such as the Atlantic Loop."

Nova Scotia Natural Resources and Renewables Minister Tory Rushton says the province is waiting to see what that means. 

"If the federal budget is an indication that they are excited to get something moving, put that on the table," Rushton said Wednesday. "We need to hear 100 per cent of what the total number is that the federal government is putting on the table. We cannot do this without the federal government."

Houston pointed to the bailout the federal government gave Newfoundland and Labrador electricity customers in July 2021, weeks before calling a federal election.

Ottawa agreed to transfer $3.2 billion in federal oil royalties to subsidize power rates that were set to soar to pay for overruns at the provincially owned Muskrat Falls hydro project in Labrador.

"They haven't done that for Nova Scotia. I would like to see that. I would like to see a meaningful straight-on investment in a project from the federal government to support the ratepayers," Houston said.

Absent an adequate federal contribution the province is focusing on a made-in-Nova Scotia effort to green the grid which includes adding large amounts of wind power and exploring alternatives including nuclear energy, he said.

Dominic LeBlanc's office declined to comment on Houston's remarks.