Prime Minister claims Atlantic Loop could bankrupt the province, but the opposition is sceptical

Prime Minister Tim Houston says the proposed Atlantic Loop has become so expensive and risky that it has the potential to bankrupt Nova Scotia and double electricity rates.

But information from Nova Scotia Power casts doubt on the latter suggestion, while opposition leaders call the former ridiculous.

Houston’s comments come as rhetoric between his administration and the federal government intensifies over the multibillion-dollar project, which would bring hydropower from Quebec and Labrador to New Brunswick and Nova Scotia through improved transmission links.

On Wednesday, federal immigration minister and Nova Scotia MP Sean Fraser said his administration has identified the Loop as the “least costly option for households” as the province works to get rid of coal.

“If there are alternative proposals [less] precious, of course we are interested to hear what they might be,” he told reporters after a government announcement.

“But so far, the Atlantic Loop is by far the least expensive option anyone has identified with anything more than math in the back seat.”

The risks of mega projects

On Thursday, Houston challenged Fraser or another funder of the project to show which options they compare it to, saying it’s the cheapest option.

Houston has argued that the federal government is not putting enough skin in the game to make the project affordable for Nova Scotians. He said Ottawa’s offer of a $4.5 billion loan for the project will not do enough to protect taxpayers.

Then there is the concern about cost overruns that can come with mega projects, such as the Muskrat Falls hydropower project in Labrador, which is billions over budget.

“This has the potential to bankrupt our county,” Houston told reporters.

“Newfoundland was in a similar situation, they were bailed out by the federal government. But imagine the federal government trying to push through a proposal that has the potential to bankrupt the province without any assurance that they would then come to save the province.”

‘Costs of different routes up to 2030 are comparable’

In a statement, a spokesperson for Nova Scotia Power said the utility has modeled a number of scenarios to meet the province’s 2030 environmental goals to move away from coal and source 80 percent of its electricity from renewable sources.

“While none of the scenarios contemplate a doubling of electricity rates in Nova Scotia, there is no doubt that significant costs will be required to meet the government’s clean energy goals and reinforces the need for federal funding,” says Jackie Foster.

While Houston said the government can meet its 2030 targets in a more affordable way than the Atlantic Loop, Foster said in her statement that the costs of meeting the targets exist with or without the Atlantic Loop.

“The costs of the different paths to 2030 are comparable.”

The province’s deputy minister of natural resources and renewable energies provided more details on how Nova Scotia can achieve its goals without the Atlantic Loop at a committee meeting earlier this week.

Karen Gatien told MLAs that the province is on track to produce more than 80 percent of its electricity from renewable sources by 2030 as Nova Scotia finally gets its full share of hydropower from Muskrat Falls through the Maritime Link submarine transmission cable and with the addition of more wind projects. Battery storage would provide basic backup for the renewables, Gatien said.

Opposition leaders are asking for more details

However, the government has yet to share details with the public about how that plan would affect power rates or what it would cost, and opposition leaders said it was the least Houston could offer.

“All he’s done so far is list conceptual renewable projects — offshore wind, tidal, nuclear, hydrogen. None of these things are ready to go. The Atlantic Loop is ready to go,” said Liberal leader Zach Churchill to reporters.

“I think he really needs to grow into this a bit and get back to the table and do his job.”

Churchill said the idea that the Loop could bankrupt the county is “ridiculous”.

NDP leader Claudia Chender agreed, saying there are no independent figures to back up the prime minister’s claim.

If the province moves forward without the Atlantic Loop, Chender said the prime minister owes the public concrete details about timelines and costs of how he will meet the 2030 targets set by the Tories.

“I think this government, as usual, is not giving the people of Nova Scotia the information they need to understand what’s really going on.”

Chender said the prime minister seems to have recognized that a fight with the federal government is good policy and that he puts it above the interests of Nova Scotians.

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