'A sledgehammer to kill a fly': Muskrat Falls critics react to Stan Marshall's project update

Two longstanding critics of the Muskrat Falls projecthave found much to applaud in Nalcor CEOStan Marshall's update last week,although both say more could be done to mitigate people's concerns.

"It was nice to see some of this freshness come out on Friday. even though we are horrified that we are looking at an$11.4 billion project now," blogger Des Sullivan told CBC Radio'sSt. John's Morning Show.

Marshall's blunt assessment was that Muskrat Fallsoutstrips the province's energy needs, will almost double ratepayers' electricity bills, and was "not the right choice" for this province.

When asked if he would call the project a boondoggle, he said yes.

• It's official: Muskrat Falls a boondoggle, says Stan Marshall

• 'It will not bankrupt this province': Dwight Ball on Muskrat Falls update

"Everyone assumed because it was said by the authorities, it had to be right. Now you have someone of StanMarshall's calibre, coming to us and saying, sorry guys. this was a boondoggle," Sullivansaid.

"[It]is really an institutional admission, that this was a deceptive project from the beginning. And Ithink this is an admission that needs to be followed up on down the road."

Peaking problem

Similarly, economist and former headof the Public Utilities Board, David Vardy, foundcold comfort in having his criticismthat Muskrat Falls would be too big for the province's power supply problemvalidated.

"Thisproject is the wrong project for NewfoundlandandLabrador," Vardy told CBC Radio's Central Morning Show.

"We're using a sledgehammer to kill a fly. What we need is a [flyswatter]."

Vardysaid in reality, the province has less of a power shortage and more ofwhat's called a "peaking problem," wherepeople all overload the electrical gridat the same time.

"Three months of the year, we need excess power because of our cold temperatures and high winds," he said.

Vardy said that situation demands managing customerswith more than just letting them crankup the thermostat.

"People still need to heat their homes in the winter, but they need to use different technology. This is very inefficient, using electric power."

Vardy added Marshall's warning that power rates will rise dramatically will only add to the oversupply problem.

"There's something called 'demand elasticity' which means people will substitute other things," said Vardy, predicting a move away from electric heat will also sharply lowerrevenue.

"The government is going to have to step in and going to have to raise taxes in order to pay for this project."

More information, please

Both Vardy and Sullivan felt Marshall's update should have included making more informationpublic.

"Iam looking to make sure that some of the things missing from this project, right from the start, are brought to bear," said Des Sullivan.

"Iwanted to hear change."

• Oh the irony: the upside down assumptions of Muskrat Falls, Churchill Falls

Sullivan points to unanswered questions about an area of the dam known as the North Spur, which requires large amounts of stabilization. Sullivan would like to see geotechnical experts review that area.

Vardy also expressed concerns about the North Spur, but saidhe'd likethe cost of cancelling Muskrat Fallsto be made public.

"Istill think the best solution right now is to stop this project while we still can."