ST. JOHN’S, N.L. – The head of Newfoundland and Labrador’s Crown energy company says costs for the $7.7-billion Muskrat Falls hydro project are going up and first power may be delayed.
Nalcor Energy CEO Ed Martin says the province’s $6.2-billion share of the project is under pressure due to labour, supplies and other costs.
But Martin says he won’t give a new cost update while major contracts for the dam and powerhouse in Labrador are still being negotiated.
He also says the goal of providing first power by 2017 is in question and may be delayed.
The joint project with Nova Scotia utility company Emera (TSX:EMA) would bring power from Muskrat Falls to the island of Newfoundland and on to Nova Scotia.
It involves a complex series of overland transmission and subsea cables.