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Quebec corruption in almost all organized labour adds a layer of cost to all Quebeckers. Then the high taxes and enourmously overpaid civil serpents adds anothe

Quebec corruption in almost all organized labour adds a layer of cost to all Quebeckers. Then the high taxes and enourmously overpaid civil serpents adds another. Where does the $$ come from to cover this? There are two major revenue sourcesL; One is the Canadian federal revenue sharing with Quebec, called Equalization (https://en.wikipedia.org/wiki/Equalization_payments_in_Canada https://en.wikipedia.org/wiki/Equalization_payments_in_Canad...). All Canadians subsidize Quebec - mainly Ontario and the oil riches on Manitoba and others with oil (used to be oil rich at any case). The other main source of Quebec revenue is the rape of Labrador Water power revenues(part of Newfoundland). This was a huge win for Quebec, as it gets the power at $3 per MWh, compared to what Quebec sells it for $40-45 per MWh. Once this run out in 2041 = death of this huge cash cow for the most part, as Labrador will finish a large EHV DC line to the USA under the sea by then, one hopes. (it is planned and as you can see, can finance itself easily) So Quebec will find itself in real trouble by then.

solitus 7y ago
Quebec can generate a ton of power on its own though...I doubt Quebec will be in "real" trouble by then. Also you are talking 20 years from now mate...
generatorguy 7y ago
Quebec has profited 28 billion dollars from Churchill falls between 1971 and 2016. They built the dam for 1 billion dollars, taking on all the risk. Quebec has great talent in electrical engineering and building hydro electric power plants. Quebec companies bring their expertise and develop hydro power plants across Canada and around the world for customers who don’t know how to do it themselves, sometimes in exchange for part ownership of the project. The power transmission had to go through quebec, any other option was uneconomic as they are now finding out with the muskrat falls. $45/MWH for renewable dispatchable power is cheap. $3/MWH is pratically free but Quebec also has financing costs for the project on top of that to pay. Plus the risk. I don’t think Newfoundland got taken advantage of here, this is a deal that works out well for both sides. Nobody makes a deal they don’t like - if they had a better option they would have done that.
- aurizon 7y ago
  if they liked it, they will sign a new and similar one. I think not, UHV DC after 2041
  - generatorguy 7y ago
    It is not the same situation in 2041 as it was in 1969, so of course they will not sign the same deal. They liked it at the time because it was their best option. Now: 1. the plant is built and paid for! there are no constructions costs and no construction risk. 2. energy is more expensive now, particularly renewable dispatchable generation They clearly have a different hand to play now than they did in 1969. Quebec owns 33% of the plant so they will be happy if NFL sells the power to the states at higher than the marginal cost of generation in QC.

solitus 7y ago

Quebec can generate a ton of power on its own though...I doubt Quebec will be in "real" trouble by then. Also you are talking 20 years from now mate...

generatorguy 7y ago

Quebec has profited 28 billion dollars from Churchill falls between 1971 and 2016. They built the dam for 1 billion dollars, taking on all the risk. Quebec has great talent in electrical engineering and building hydro electric power plants. Quebec companies bring their expertise and develop hydro power plants across Canada and around the world for customers who don’t know how to do it themselves, sometimes in exchange for part ownership of the project. The power transmission had to go through quebec, any other option was uneconomic as they are now finding out with the muskrat falls. $45/MWH for renewable dispatchable power is cheap. $3/MWH is pratically free but Quebec also has financing costs for the project on top of that to pay. Plus the risk. I don’t think Newfoundland got taken advantage of here, this is a deal that works out well for both sides. Nobody makes a deal they don’t like - if they had a better option they would have done that.

aurizon 7y ago
if they liked it, they will sign a new and similar one. I think not, UHV DC after 2041
- generatorguy 7y ago
  It is not the same situation in 2041 as it was in 1969, so of course they will not sign the same deal. They liked it at the time because it was their best option. Now: 1. the plant is built and paid for! there are no constructions costs and no construction risk. 2. energy is more expensive now, particularly renewable dispatchable generation They clearly have a different hand to play now than they did in 1969. Quebec owns 33% of the plant so they will be happy if NFL sells the power to the states at higher than the marginal cost of generation in QC.