Premier claims Atlantic Loop could bankrupt province, but opposition is skeptical

Premier Tim Houston says the proposed Atlantic Loop has grown so expensive and risky that it has the potential to bankrupt Nova Scotia and double power rates.

But information from Nova Scotia Power brings the latter suggestioninto question, while opposition leaders call the former ridiculous.

Houston's comments come as rhetoric between his government and the federal government heightens over the multi-billion dollar project, which would bring hydroelectric power from Quebec and Labrador into New Brunswick and Nova Scotia via upgraded transmission links.

On Wednesday, federal immigration minister and Nova Scotia MP Sean Fraser said his government has identified the Loop as the "least costly option for households" as the province works to get off coal.

"If there are alternative proposals that are [less] costly, of course we're interested in hearing what they may be," he told reporters following a government announcement.

"But to date, by far the least costly option that anyone has identified with something more than back-of-napkin math is the Atlantic Loop."

The risks of mega-projects

On Thursday, Houston challenged Fraser or any other backerofthe project to show what options they're comparing it to, in order to say it's the lowest-cost option.

Houston has argued that the federal government isn't putting enough skin in the game to make the project affordable for Nova Scotians. He has said Ottawa's offer of a loan in the range of $4.5 billion toward the project won't do enough to protect ratepayers.

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

"This has the potential to bankrupt our province," 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 a proposal that has the potential tocould bankrupt the province without any assurance that then they would come and rescue the province."

'Costs of various paths to 2030 are comparable'

In a statement, a spokesperson for Nova Scotia Power said the utility has modelled a number of scenarios to reach the province's 2030 environmental targets of getting off coal and generating 80 per cent of electricity from renewable sources.

"While none of the scenarios contemplate a doubling of power rates in Nova Scotia, there is no question there are significant costs required to achieve the government's clean energy targets and reinforces the need for federal funding," said Jackie Foster.

Although 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 cost of meeting the targets exists with or without the Atlantic Loop.

"The costs of the various paths to 2030 are comparable."

The province's deputy minister of natural resources and renewables provided firmer details about how Nova Scotia can meet its targets without the Atlantic Loop during a committee meeting earlier this week.

Karen Gatien told MLAs that the province is on track to produce more than 80 per cent of its electricity from renewable sources by 2030 because Nova Scotia is finally getting its full share of hydro power from Muskrat Falls via the Maritime Link subsea transmission cable and with the addition of more wind projects. Battery storage would provide baseline backup to the renewables, said Gatien.

Opposition leaders call for more details

The government has yet to share details with the public about how that plan would affect power rates or what it would cost, however, and opposition leaders said that's the least Houston could provide.

"The only thing 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," Liberal Leader Zach Churchill told reporters.

"I think he really needs to grow up a little on this and get back to the table and do his work."

Churchill said the idea the Loop could bankrupt the province is "ridiculous."

NDP Leader Claudia Chender agreed, saying there are no independent numbers to back up the premier's claim.

If the province is moving on without the Atlantic Loop, Chender said the premier owes the public concrete details about timelines and costs of how he'll meet the 2030 targets legislated by the Tories.

"I think that this government is, as usual, not providing Nova Scotians with the information they need to understand what's actually going on."

Chender said the premier seems to have recognized that a fight with the federal government is good politics and he's putting that ahead of the interests of Nova Scotians.

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