PRESS RELEASE
FOR IMMEDIATE RELEASE
Montreal, April 15, 2019 – The Legault government demonstrates inconsistency in economic matters with the green light given to Hydro-Québec for the Manouane Sipi project by the signing of an electricity purchase contract on February 15, 2019.
This project will cause losses estimated at 6 M$ per year. The purchase of electricity will be at 8.5 cents/kWh initially, with an average cost of 11 cents/kWh over the 20 years of the contract, due to a planned automatic indexation of 2.5 % per year. However, Hydro sells its surplus electricity for less than 5 cents/kWh on the American market. Moreover, its enormous surpluses will continue for an indefinite period. Water spills from dams, worth 500 M$, were necessary in 2018 (10 TWh spilled at 5 cents/KWh). In addition to the costs of producing electricity, there are those of its transportation and distribution, which also represent millions of dollars annually.
The Legault government is thus sweeping under the carpet a multitude of declarations indicating its opposition to loss-making projects. Prime Minister François Legault nevertheless participated, with Québec solidaire represented by Amir Khadir, in a press conference on February 14, 2013 to denounce such projects : “Let's call a spade a spade. It's a disguised way with an unprofitable project to give a subsidy to municipal authorities or MRCs who may need it, but why go do a project that will cause all Quebecers to lose dozens millions of dollars?» he declared. A year later, on May 27, 2014, he challenged Prime Minister Philippe Couillard in a press release: “ I imagine that the Prime Minister had an analysis of the costs and anticipated revenues carried out with the mini-power plant projects. Can the Prime Minister tell us how much the bill will be for taxpayers to subsidize his mini-power plants?". In the National Assembly, he called the projects “expensive and economically illogical” for taxpayers.
Furthermore, the government and Hydro-Québec have the legitimacy to cancel such projects, as the Marois government did in 2013, or to revise the conditions given the cumulative delays to date. Market conditions, now 15 years later with commissioning in 2024, are very different from those that prevailed when the program was developed in 2009. With regard more specifically to the Manouane Sipi project, Fondation Rivières emphasizes that the project will cause an almost complete drying up of approximately 4 kilometers of the Manouane River. The purpose of this drying is to increase profits by further turbinating the water. On the other hand, Fondation Rivières requests disclosure of the contract with the company Kruger Énergie and profitability calculations. These are falsely established over 40 years while the contract mentions that the price for the second period of 20 years will be established “ under the conditions which will then have been set by the Distributor », Hydro-Québec.
The Fondation Rivières therefore requests that the Limited Partnership Manouane Sipi and its private constituent company 9228-4348 QUÉBEC INC be subject to the rules of access to information of public bodies, that rules for public calls for tenders be implemented. apply, and that cost estimates and profitability calculations are rigorously analyzed independently.
- 30 -
For informations :
Alain Saladzius
President
514 924-2013
presidency@fondationrivieres.org
