Newfoundland Hydro propping up Corner Brook paper mill by buying its overpriced — and unneeded — electricity

By Terry Roberts
CBC News
February 17, 2025
Category: Business & Politics
Region: Canada, Canada East

CORNER BROOK — The provincial government, through its Crown-owned utility company, is helping prop up the struggling newsprint mill in Newfoundland and Labrador by buying unnecessary electricity from Corner Brook Pulp and Paper at an inflated rate. It’s power that Newfoundland and Labrador Hydro does not need to supply customers, according to the utility company. …N.L. Hydro has confirmed that it is buying electricity from Deer Lake Power, which energizes the paper-making machines at the Corner Brook mill, for 27.5 cents per kilowatt hour. That’s nearly twice the average domestic electricity rate — 15.3 cents, when the basic customer charge is included — on the island of Newfoundland. …The power purchase agreement is just the latest attempt to save the Corner Brook mill by both Liberal and Progressive Conservative governments. …Kruger has described Corner Brook Pulp and Paper as a “vital force” in western Newfoundland’s economy.

Read More