Mainly about the money: Muskrat Falls inquiry lays out terms of reference

JudgeRichard LeBlanc has decided what's in and what's out for the inquiry he's heading up into the Muskrat Falls hydroelectric project in Labrador.

In a 22 page decisionreleased Wednesday, the Supreme Court Justicegave his interpretation of the terms of reference given to him by the provincial government.

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As commissioner, LeBlancsaid his main focus will be on what led project costs to balloon from $7.2 billion to $12.7 billion.

Because of the broad scope of the project, he asked for submissions on what should be considered so he could make a decision in advance of hearings.

He received 32 submissions in total.

The hearings will look at the analysis and forecasts relied on byNalcor, the Crown corporation responsible for the project,and the arrangements it entered into with contractors.

LeBlanc will also examinewhat oversight was provided during construction, and at the decision not to allow the Public Utilities Board to have that role.

Environmental concerns

The terms of reference did not specifically mention concerns by Indigenous groups about the health and environmental effects of the project.

But LeBlanc has decided to include it in the inquiry.

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He'll look at what analysis was done byNalcor, and whether it was enough to research and address the concerns raised by the Inuit,Innuand others.

Submissions also raised concerns over a "democratic deficit" that allowed this project to proceed and LeBlanc said he will consider that issue.

"Some of the commission's effort will need to focus on such things as the future role of Crown corporations in large-scale projects and, specifically, governance and transparency issues related to public accountability,"he wrote.

LeBlanc's report is expected just as Muskrat Falls power starts flowing to customers, and government faces key questions on how to spread the cost around.

It's already said it will do what it can to avoid sticker shock for consumers, which could mean taxpayers will end up subsidizing the cost of power bills.

How that balance should work will be part of LeBlanc's report

"This is not a simple task to undertake but the commission will have to bear this in mind," he said.

What's out?

LeBlanc ruled out some areas in the inquiry, including suggestions that he should be able to decide to shut down the project if deemed necessary.

"I have no such right or authority based upon the terms set out in the order in council," he said.

When it comes to the protests and howNalcorand the police handled them, LeBlanc said he'll only look into how it may have contributed to cost overruns

"I do not intend to consider what transpired as a result of the protests or demonstrations that occurred and the subsequent reaction by the police and/or the justice system," he wrote.

Read LeBlanc's full interpretation of the terms of reference here.