Monday, 20 November 2017

LOW RESERVOIRS POSE GREATEST OUTAGE RISK SINCE DARKNL

Guest Post Written By PlanetNL


PlanetNL5: Low Reservoirs Will Strain Thermal Generation This Winter
Uncle Gnarley suggested readers be given a respite from the gloomy Muskrat analysis series and instead asked PlanetNL to provide a critique on a different energy concern: the impact of low reservoir levels on this winter’s energy supply needs, as just revealed in a recent NL Hydro report.

The first concern is the cost of unplanned high fuel consumption at Holyrood and the standby combustion turbines over the winter and possibly well into 2018, a cost that NL Hydro is certain to want to recover through rate adjustments.  A considerable pre-Muskrat rate hike will result. 

Saturday, 18 November 2017

BARD OF PYNN'S BROOK TACKLES "MR. BIG"

MR BIG

By John Tuach

“Develop or Perish!” - Smallwood.

A former ‘Main Man’ steering ship?
The files will have a familiar flip:
Churchill River hydro mill -
Cash for Provincial coffers fill!

Offshore oil, mines, forestry,
Energy, and fish - all travesty!
Industrial avarice in major plays,
Who abets the give-aways?

Power to run the metal mines,
Windmill spins atop the Barrens,
Making pellets - a money burn,
Old projects, each in turn.

An alternate agenda is a toot:
Prolong the Muskrat money loot
To obfuscate some other theft -
And perished public more bereft.

And some suggest conspiracy:
Plunder planned (a resource spree?)
A Nalcor asset fire-sale feast
When entrails stirred of Muskrat beast.

Did ‘Canada’ steer the scam?
To issue bonds to build the dam,
To grab a slab of finance loot,
Perchance a numbers game afoot.

Is there ‘The Man’ for subterfuges?
(The latter crowds only stooges).
That sat around at Federal tables,
Investment lucre now enables.

Media manipulator extraordinaire,
To move and shake the political air.
Knows the people (to burn) too green -
A puppet-master behind the scene?

October 30, 2017


Thursday, 16 November 2017

OSBORNE: NO PRICE TOO HIGH FOR POLITICAL PEACE

Mercifully, Finance Minister Tom Osborne kept the Budget Update short. It won’t get much ink here, either.
Osborne has confirmed what most people seem to have concluded: he has no intention of tackling the deficit.
The former Finance Minister, Cathy Bennett, told a reporter that “I wish we had had better information going into the election campaign,” seemingly ignorant of the fact that, as an MHA, she was always expected to read — and to understand — the Budget Estimates. Of course, her search was for a scapegoat. Osborne, not four months into the job, hopes he has found one too. 

Monday, 13 November 2017

CHERNOBYL-LITE: THE PRICE OF DENYING MUSKRAT ECONOMICS

Guest Post by PlanetNL


PlanetNL.4 - Mothball Muskrat Now
Previous PlanetNL instalments have detailed how the uneconomic Muskrat project threatens to destroy NL Hydro and ratepayers or, if the subsidy route is chosen, Government and taxpayers.  The painful third alternative is to choose to stop the project and have the Premier call on Ottawa to act fully and promptly on the murky Federal Loan Guarantees of $7.9B.

Even with the federally guaranteed debt removed, serious issues remain.  Ratepayers still face large rate increases and the Provincial Government must record a total loss of equity. Emera would suffer contractual losses and demand compensation.  Ottawa would be divided on whether to act as many other provinces will not support the bailout.  A substantial and raucous debate is sure to erupt whenever Ottawa publicly considers this request.

…………………….

Wednesday, 8 November 2017

COADY MISINFORMED. SECOND SOURCE CONFIRMS FAULTY TOWERS

The Uncle Gnarley Blog stands by the source who provided information regarding the welding defects Nalcor has encountered on the Labrador-Island Transmission Link (LIL).

The existence of the defects has now been confirmed by a second source.
The blog post entitled Faulty Towers: Nalcor's Comedy (Of Errors),  published on Monday, reported that the problem is associated with the welds on a component part located at the base of each tower.

Monday, 6 November 2017

FAULTY TOWERS: A NALCOR COMEDY (OF ERRORS)

Newfoundland would have provided the perfect setting for the British TV Comedy series “Fawlty Towers”. Here, John Cleese would have had no need for inventive double entendres. And the laughs could have been on Nalcor’s dime.

According to an Uncle Gnarley Blog source, Nalcor is grappling with a new problem. And it is no laughing matter. As you might have guessed, the issue revolves around faulty towers.
Nalcor has discovered structural defects in an undetermined number of the towers on the 1100 km Labrador-Island Link (LIL). That’s the extension cord intended to deliver Upper Churchill recall power next year and, subsequently, power from the Muskrat Falls project.
According to the source, the structural integrity of a selection of 30 towers was tested recently. The tests produced a failure rate of 100%.

Thursday, 2 November 2017

IS MUSKRAT FALLS A PONZI SCHEME?

Guest Post by David Vardy

There are remarkable similarities between the business model for Muskrat Falls and a Ponzi scheme, credited to Charles Ponzi, who instigated the first Ponzi scheme in 1919. 

Bernard Madoff was one of many who built upon the original Ponzi concept. Madoff met his Waterloo in March  2009, when he pleaded guilty to 11 federal felonies, including securities fraudwire fraudmail fraudmoney launderingmaking false statementsperjury, theft from an employee benefit plan, and making false filings with the SEC. Will Muskrat Falls lead to such a wide range of criminal charges after the Commission of Inquiry has concluded?

The business model for Muskrat Falls is built upon fictitious energy sales which created unearned revenues. Electricity consumers were conscripted to participate in these fictitious sales through amendments to the Electrical Power Control Act which conferred monopoly power upon Nalcor, so that all large consumers of power were required to buy power generated at Muskrat Falls.