After a long waiting period for the Lower Churchill mega project to become a reality or not, yesteday Nalcor Energy and Emera Inc. agreed on an estimated $6.2 Billion deal.
Premier Danny Williams of Newfoundland and Labrador, along with Premier Darrell Dexter of Nova Scotia made the announcement.
A 35 year deal includes the Muskrat Falls Generating Station, Labrador Transmission, Labrador-Island Transmission Link and the Maritime Link.
The agreement not only will see Lower Churchill become a reality, but the Innu Nation will benefit significantly as well.
Under the Churchill Falls Hydroelectric Development Redress Agreement, commencing on the execution of the Impacts Benefit Agreement and until 2041.
Nalcor Energy will make an annual settlement payment to the Innu Nation of $2 Million annually.
This amount will also see an annual increase of 2.5%.
The mega project will go directly from Muskrat Falls, cut directly to Southern Labrador, dip under the sea to Newfoundland’s Northern Peninsula and straight to St. John’s.
Branching off, the power lines will turn towards South Western Newfoundland, dip again under the sea and connect into New Brunswick, then to Nova Scotia.
Muskrat Falls will produce a whopping 824 megawatts of power, of that the Province of Newfoundland and Labrador will use 524 megawatts and provide the remaining 300 to Nova Scotia.
The Lower Churchill project is expected to start in 2011 and is expected to take approximately six years.