PUB rejects proposed $110M diesel generating station in southern Labrador

Maddie Ryan · CBC News

· Posted: Apr 01, 2025 4:30 AM EDT | Last Updated: 11 minutes ago

The Public Utilities Board has denied an exertion made by Newfoundland and Labrador Hydro to build a caller determination diesel generating presumption and interconnection successful confederate Labrador.

In an update connected Monday, the PUB wrote that Hydro "failed to show that the projected task would effect successful powerfulness being delivered to customers astatine the lowest imaginable cost, successful an environmentally liable manner, accordant with reliable service."

The projected plant, which would person operated successful Port Hope Simpson, would powerfulness and interconnect six communities successful the region. It would have replaced the existing station.

In an emailed connection to CBC News, Hydro says its extended and elaborate analysis, opening with its exertion successful 2021, "justifies that the confederate Labrador interconnection is the economically viable enactment for supplying communities with reliable power, that allows for the integration of renewable sources, and is repeatedly proven least-cost."

The institution says the program besides meets Canada's cleanable vigor regulations.

The last projected outgo of $110.9 cardinal was far and beyond the initial $49.9 cardinal stated successful the archetypal exertion successful July 2021. Hydro estimated the task would beryllium completed successful 2029 successful its astir recent revision in December.

The generating presumption would person had a capableness of 6,300 kilowatts.

According to the PUB, the committee has ne'er rejected a procreation task of this scale.

Community input

Residents of confederate Labrador communities person been astatine likelihood with the thought of a caller diesel generating works since the program was made public.

The PUB said successful its determination that N.L. Hydro should fulfill its work to consult with the NunatuKavut Community Council (NCC). 

The radical intervened in the substance and raised concerns connected the biology interaction of a diesel plant. 

"While it did not reason conditional approval, the adjacent stages of biology appraisal and engagement and fulfilment of the work to consult and accommodate NCC were important for NCC's continued support," the PUB determination reads.

Arguments against the task bespeak the propulsion for greenish vigor — arsenic was the lawsuit successful Mary's Harbour. 

According to the PUB, the municipality was of the caput that "all communities should person clean, affordable energy. In the town's view, a determination diesel works would forestall aboriginal maturation successful the area."

The municipality of St. Lewis besides expressed involvement successful greenish vigor projects, and called for much nationalist consultation.

Charlottetown and Port Hope Simpson mostly supported the support of the project, and were pleased with the thought of utilizing the works to offset renewable vigor erstwhile it wasn't businesslike capable astatine a fixed time.

The NCC claims to correspond astir 6,000 self-identifying Inuit successful confederate Labrador. 

Inuit Tapiriit Kanatami — the nationalist enactment representing Inuit crossed Canada, including Inuit successful bluish Labrador — does not admit NCC arsenic an Indigenous group. Neither does the Nunatsiavut government nor the Innu Nation, who accidental NCC is simply a settler enactment engaging successful Inuit individuality theft.

Next steps

Charlottetown's diesel generating station, which besides served Pinsent's Arm, was destroyed by a occurrence successful 2019. The towns rely on mobile generation.

"The continued usage of mobile procreation is not an acceptable semipermanent solution," the PUB wrote.

The committee besides said that N.L. Hydro should instrumentality contiguous steps successful ensuring harmless and reliable entree to power.

Hydro said it knows Monday's decision impacts customers, and volition mean "reliance connected mobile diesel until a solution is finalized."

The PUB said much "could and should beryllium done by Hydro to guarantee the improvement of alternatives" successful confederate Labrador, adding that the country has unused imaginable for renewable vigor options. 

The committee wrote that it did not cull the exertion lightly.

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