Nalcor Energy and Emera Inc have reached formal agreements for the development and transmission of hydroelectric power from Muskrat Falls, part of the Lower Churchill hydroelectric development in Canada.

The agreements were signed yesterday by the Honourable Jerome Kennedy, Minister of Natural Resources; the Honourable Charlie Parker, Nova Scotia Minister of Energy; Ed Martin, President and CEO of Nalcor Energy; and, Chris Huskilson, President and CEO, Emera Inc.

“[The] signing represents a major step forward for Newfoundland and Labrador, and is another important milestone as we move closer towards a decision on sanctioning of the project,” said Kennedy. “Muskrat Falls will deliver least-cost renewable power and stabilize rates, support economic development, and provide power to mining companies in Labrador. It will also provide long-term revenue through the export of electricity and reduce dependence on fossil fuels, along with economic and employment benefits for the province, the region, and the rest of the country.”

Nalcor and Emera have formalized 13 agreements spanning 50 years related to the development of Muskrat Falls, the Labrador-Island Transmission Link, and the Maritime Link.

The purpose of the agreements, which reflect the Term Sheet, is to formalize the transactions agreed to by the parties. Six of the agreements reflect the commitment by Emera to develop the Maritime Link connecting Newfoundland and Labrador and Nova Scotia, and to provide transmission rights in Nova Scotia. Four agreements relate to transmission rights for Nalcor in the Maritimes and New England as a result of Emera’s investment in the Labrador-Island Link, which will span from Muskrat Falls, across the Strait of Belle Isle, to Soldiers Pond on the Avalon Peninsula. Three related agreements were also completed.

“The agreements…reflect the strong partnership between Nalcor and Emera, and the commitment by both companies to ensure a quality result for everyone involved,” added Ed Martin, President and CEO of Nalcor Energy. “We took the time necessary to get it right, and I’m proud to say that today we have 13 comprehensive, sound agreements that will stand the test of time.”

“Emera is fully engaged in helping transform Atlantic Canada into an energy powerhouse with an electricity system that is more robust, flexible and better connected,” stated Chris Huskilson, President and CEO, Emera Inc. “[The] announcement sets the stage for the development of a new source and route for clean, renewable and reliable energy that will help stabilize energy costs, improve the environment and provide economic benefits for the entire region.”