On the Pre-Sanction Forensic Audit released today by the Muskrat Falls Commission of Inquiry (media release)Read Now
Statement from the Muskrat Falls Concerned Citizens Coalition (MFCCC) on the Pre-Sanction Forensic Audit released today by the Muskrat Falls Commission of Inquiry
(September 21, 2018 - St. John's, NL) The Forensic Audit prepared by Grant Thornton has confirmed our long held view that the assertion by the Dunderdale administration and Nalcor that Muskrat Falls was the less costly solution to our energy needs was wrong. (You may refer to the Grant Thornton report and summary presentation on the Muskrat Falls Inquiry website.)
Grant Thornton clearly tell us that had the Public Utilities Board been given the facts as uncovered by the auditors, it would likely have taken the position that the project wasn’t the cheapest alternative. The PUB was given DG2 or “concept” numbers and wasn’t given enough time to consider the DG 3 estimates and other documentation.
It is clear from the auditors that the assertion by Nalcor that Muskrat Falls had a $2.4 billion advantage over the isolated island option was not correct.
In addition the audit reveals:
We note that the audit did not take into account the impact of the end of the Upper Churchill Contract in 2041 and the resulting access to abundant cheap electricity at that time.
It also did not refer to the conclusion of the Joint Environment Panel that “Nalcor has not demonstrated the justification of the project as a whole in energy and economic terms.”
It is now abundantly clear that Nalcor understated the costs of the Muskrat Falls project so as to get the project sanctioned. As to the complicity of the Dunderdale administration in that understatement, we will learn more as the Inquiry unfolds.
We now know for certain that the project should never have been sanctioned.
The results of the decision to sanction the project have led to where we are today.
We are faced with unaffordable increases in our electricity rates and the grave threat to our solvency and our independence as a self-governing province of Canada.
This should never have happened and those responsible must be held to account.
For more information contact David Vardy (email@example.com), on behalf of the Muskrat Falls Concerned Citizens’ Coalition