The Honourable Andrew Parsons, KC, Minister of Industry, Energy and Technology, today outlined a new proposed Newfoundland and Labrador Hydro Act for second reading in the House of Assembly to complete the legal merger of Nalcor Energy into Newfoundland and Labrador Hydro.
The proposed Act Respecting the Amalgamation of Newfoundland and Labrador Hydro-Electric Corporation and Nalcor Energy (Hydro Corporation Act, 2024):
- Finalizes the legal merger of Nalcor Energy with Newfoundland and Labrador Hydro.
- Ensures all Nalcor and Hydro assets, liabilities, obligations and agreements will continue under the new Hydro.
- Provides for continuation of employment of Nalcor’s and Hydro’s bargaining and non-bargaining employees with Hydro.
- Binds the new corporation to any already signed contracts, agreements, etc.
- Confirms continuation of any security or guarantee provided by the Provincial Government to Nalcor with Hydro.
Section 30, a new provision under the act, is included to ensure there is an explicit legislative authority for the Minister of Industry, Energy and Technology to request documents and/or information from the corporation. This aligns with recommendations in the reports from Muskrat Falls Inquiry Commissioner the Honourable Richard D. LeBlanc and from the statutory review of the Access to Information and Protection of Privacy Act, 2015 (ATIPPA) conducted by former Chief Justice David B. Orsborn.
In addition, protections for commercially sensitive information carrying over to HCA 2024 are being narrowed to information relating to oil and gas activities only, which aligns with another recommendation from Justice Orsborn’s ATIPPA review.
Newfoundland and Labrador Hydro and Nalcor Energy are statutory corporations. Nalcor was created in 2007 under the Energy Corporation Act and Hydro continued under the Hydro Corporation Act, 2007. The Energy Corporation Act and the Hydro Corporation Act, 2007 will be repealed and replaced with the Hydro Corporation Act, 2024. As a result, Nalcor’s and Hydro’s assets, liabilities, obligations and agreements will continue under the new Hydro and all Nalcor subsidiaries will be Hydro subsidiaries.
Upon proclamation of the Hydro Corporation Act, 2024, Hydro’s board will become the amalgamated company’s board.
Quotes
“Since the announcement that Nalcor would move under the new NL Hydro, there have been changes to streamline operations. Hydro continues to focus on providing safe, reliable electricity and focusing on maximizing the economic potential of its energy portfolio. This legislation allows for the amalgamation of the corporations to complete the legal portion of this merger.”
Honourable Andrew Parsons, KC
Minister of Industry, Energy and Technology
“The proposed act now reflects the way we have been operating for the past several years, as one Hydro – your crown utility. We continue to listen and serve the people of the province as we work to deliver safe, cost-conscious and reliable electricity for our customers. Continual improvement should be the goal of any organization, and NL Hydro has improved, we are different, and we are committed to meeting the expectations of those we serve.”
Jennifer Williams
President and CEO, Newfoundland and Labrador Hydro
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Learn more
Hydro Corporation Act, 2024
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