Times have changed. If you look at the very interconnections that are occurring north-south and east-west at this point, for the most part we're keeping the lights on, although there have been indications of problems. We're at a point where we need to address those one way or another, to meet Ontario's needs in particular. They have announced the closing of the coal generation...plus they have growing demand. Steps have to be taken to meet the demand and the issue that's going to occur 10 or 12 years hence. That's the nature of big projects.
I'd like to say that we feel we're doing our part in Newfoundland and Labrador with respect to the east-west grid. We have invested money in Hydro-Québec and used an open access transmission process, which Hydro-Québec has been very open in providing us. It's their process and they've opened the door to us. We've asked them what to do, they told us, and we've applied that. But we're spending money to fund those studies—Newfoundland and Labrador alone. So we're making our best effort.
From an east-west grid perspective, we're saying we have an issue that has to be dealt with and we're asking how we can improve that. How can we help that from a federal government perspective? I turn to our friends in the U.S., who I think have been ahead of us with respect to this kind of thing. If you look at the structure of our Canadian markets and where we're headed and compare it to the U.S., the U.S. government, through the Federal Energy Regulatory Commission, FERC, has taken a stand that they are going to be the holders of the open access rules, regulations, and appeal processes. I think that makes a lot of sense. I think the various state jurisdictions in the U.S. got to a point where they felt that, for open competition and the good of the consumer, if the federal government put an element of fairness across the country over this thing, that most importantly is going to drive this freer flow of energy across Canada. I suggest we are probably at a stage where we need to consider that.
With respect to the jurisdictions that are impacted, whether you're coming through Manitoba, Saskatchewan, Quebec or anywhere, one of the key bases of open access is to ensure you pay a fair tariff. The jurisdictions that currently own the transmission have invested good money in that transmission. They made good investments, strong investments, and there is value attached to that. From a federal perspective, an understanding that those jurisdictions have to be protected to get a fair return on the assets that will be utilized by others is critical.
You have to have something that works for everybody. That's the way we're looking at it with respect to our relationships with New Brunswick and the Province of Quebec. We see this as good for both of those jurisdictions. In a tariff situation, which we'll be paying, we understand the numbers. Any tariff that's being paid is cash that goes into the systems in New Brunswick and in Quebec. It provides extra revenue to those jurisdictions for transmission capacity that is not being currently used, which has the result of making their systems more effective, with lower cost to their consumers. There is a return built into that.
That's how we're working with these folks. We understand and we are prepared to pay a fair tariff to use those assets. But if you look at the structure and how this happens, I think the time has come for the federal government to make that work and make sure it is fair for everybody.