Muskrat Falls deal inked

Nova Scotia Power parent company Emera and Newfoundland utility Nalcor Energy have signed a deal to bring hydroelectricity from Muskrat Falls in Labrador to Nova Scotia some time after 2017.

The cost estimate for the complete project is not set yet, but the parties expect to make it public some time this fall, during publichearings on the project in both provinces.

Emera and Nalcor Energywill be expected to cover any cost overruns on the $1.2 billion construction of the cable between Newfoundland and Nova Scotia.

Nova Scotia Energy Minister Charlie Parker said the deal will help the province stop burning coal, diversify its energy supply, and stabilize power rates over the next 35 years.

The provinces are still negotiating federal loan guarantees to reduce financing costs, but the partners say they expect the guarantee to materialize.