It was announced this morning that the deal which would have seen Hydro-Quebec purchase assets of NB Power, a New Brunswick Crown Corporation, for $3.2 billion is dead. After due diligence was done, changes to the deal by both parties have resulted in cancellation of the agreement.
For several months, the Ghiz government has been negotiating a deal with Hydro-Quebec. It was rumoured that, with the deal, Islanders would have seen electricity rates drop by 20 to 25% over a five year time-frame. It will be interesting to see if these negotiations are now off the table with cancellation of the purchase of NB Power.
Maritime Electric and Fortis must be rubbing their hands together with delight because they can now continue to charge Islanders the highest rate for electricity in Canada with no interference from politicians.