Some costs for Northumberland Strait power cable 'under dispute'

The project to connect P.E.I. to the mainland with two new undersea power cables is expected to be completed on budget, says Maritime Electric, but there are still some costs under discussion.

The cables were completed last month and are currently undergoing testing.

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Ownership of the two cables remains with LS Cable, the company that won the contract to build them. According to the PEI Energy Corporation, ownership will transfer to the province once testing of the cables is complete.

Costs for the $142 million project were covered jointly by the province and Ottawa, but Maritime Electric managed the project and will continue the maintenance of cables.

The utility says discussions are ongoing with contractors over who will pay for some cost overruns, but neither Maritime Electric nor the province would elaborate on what other costs are under dispute, or how much money is involved.

"During the project there were some legitimate contract extras that were needed and that we didn't identify specifically, and we're prepared to pay that," said Maritime Electric CEO John Gaudet.

"There are some extra costs that we disagree with and those are the items that will be discussed further going forward. So there are some costs that are fair. And there are some costs that are under dispute."

Gaudet said some overruns have been covered with a contingency fund built into the original budget.

There were significant delays with the project, which was supposed to be completed before the ice moved in last winter.

Maritime Electric says some work to bury the cables is still underway, with gravel being used to provide cover in about 20 spots. It says that work should be completed by the end of next week.

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