Mr. Speaker, a very important event has taken place within the Canadian electricity market this week. For the first time in history, Newfoundland and Labrador is selling power from the Churchill Falls hydro project directly into the United States, through Hydro-Québec transmission lines.
It is a small amount of power, reserved from the 1960s deal that saw virtually all Churchill Falls electricity go to Hydro-Québec, which eventually reaped enormous windfalls, getting the lion's share of profits to the consternation of Newfoundland and Labrador.
But it is historic because it could be a first step and a building block for a Canadian power grid. It is based on a concept very much part of the American power grid, but new to Canada, called “wheeling rights”. The United States regulatory system requires participants in its electricity grid to allow others access to the grid through its facilities as a condition of participation.
Congratulations to Hydro-Québec and Newfoundland and Labrador Hydro and its parent, Nalcor, on this historic deal. We hope that this model can help show the way for the development of a true Canadian electricity grid, allowing cleaner, greener energy to be developed and marketed within Canada. We hope the federal government will step up to the plate and start playing a role in making this happen.