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Showing posts from March 4, 2009

FOOTNOTE BY DAN SOPROVICH, AN ECOLOGIST, FORESTRY EXPERT AND LONG-TIME WATCHDOG OF "LP" OPERATIONS

Some 8 years or so ago, natural gas came to Swan River, primarily as an aid to LP because this would be cheaper than the propane that the Company was using to power its RTOs. My recollection is that LP were to use about 88% of the gas initially, per figures provided to the Public Utilities Board. LP put in a bit of money, I think $300,000 or something. The feds were in for about $1.7 million, the province for $1.7 million, and local ratepayers for about $1.7 million. At the time, my calculation was that the three local ratepayers who were not on gas would subsidize the one ratepayer who signed up to the tune of about $1000 each, or $3000. Some absurd estimate of ultimate signup by local ratepayers was presented to the Board, perhaps 8 of 10; it never happened. Bottom line on this issue, if the province allows LP to shut down its RTOs (justifiably or otherwise), this will represent an approximate $5 million subsidy to LP that will be mostly lost. This subsidy oc