Traffic lights out after transformer fires

European Green Deal Electrification accelerates decarbonization via renewables, electric vehicles, heat pumps, and clean industry, backed by sustainable finance, EIB green lending, just transition funds, and energy taxation reform to phase out fossil fuels.

Key Points

An EU plan to replace fossil fuels with renewable electricity in transport, buildings, and industry, supported by green finance.

✅ Doubles electricity's share to cut CO2 and phase out fossil fuels.

✅ Drives EVs, heat pumps, and electrified industry via renewables.

✅ Funded by EIB lending, EU budget, and just transition support.

The European Union is preparing an ambitious plan to completely decarbonize by 2050. Increasing the share of electricity in Europe’s energy system – electricity that will increasingly come from renewable sources - will be at the center of this strategy, aligning with the broader global energy transition under way, the new head of the European Commission’s energy department said yesterday.

This will mean more electric cars, electric heating and electric industry. The idea is that fossil fuels should no longer be a primary energy source, heating homes, warming food or powering cars. In the medium term they should only be used to generate electricity, a shift mirrored by New Zealand's electricity shift efforts, which then powers these things, resulting in less CO2 emissions.

“First assessments show we need to double the share of electricity in energy consumption by 2050,” Ditte Juul-Jørgensen said at an event in Brussels this week, a goal echoed by recent calls to double investment in power systems from world leaders. “We’ve already seen an increase in the last decade, but we need to go further”.

Juul-Jørgensen, who started in her job as director-general of the commission’s energy department in August, has come to the role at a pivotal time for energy. The 2050 decarbonization proposal from the Commission, the EU’s executive branch, is expected to be approved next month by EU national leaders. A veto from Poland that has blocked adoption until now is likely to be overcome if Poland and other Eastern European countries are offered financial assistance from a “just transition fund”, according to EU sources.

Ursula von der Leyen, the incoming President of the Commission, has promised to unveil a “European Green Deal” in her first 100 days in office designed to get the EU to its 2050 goal. Juul-Jørgensen will be working with the incoming EU Energy Commissioner, Kadri Simson, on designing this complex strategy. The overall aim will be to phase out fossil fuels, and increase the use of electricity from green sources, amid trends like oil majors pivoting to electric across Europe today.

“This will be about how do we best make use of electricity to feed into other sectors,” Juul-Jørgensen said. “We need to think about transforming it into other sources, and how to best transport it.”

“But the biggest challenge from what I see today is that of investment and finance - the changes we have to make are very significant.”

Financing problems

The Commission is going to try to tackle the challenges of financing the energy transition with two tools: dedicated climate funding in the EU budget, and dedicated climate lending from the European Investment Bank.

“The EIB will play an increasing role in future. We hope to see agreement [with the EIB board] on that in the coming months so there’s a clear operator in the EIB to support the green transition. We’re looking at something around €400 billion a year.”

The Commission’s proposed dedicated climate spending in the next seven-year budget must still be approved by the 28 EU national governments. Juul-Jørgensen said there is unanimous agreement on the amount: 25% of the budget. But there is disagreement about how to determine what is green spending.

“A lot of work has been ongoing to ensure that when it comes to counting it reflects the reality of the investments,” she said. “We’re working on the taxonomy on sustainable finance - internally identifying sectors contributing to overall climate objectives.”

Electricity pact

Juul-Jørgensen was speaking at an event organized by the the Electrification Alliance, a pact between nine industry organizations to lobby for electricity to be put at the heart of the European green deal. They signed a declaration at the event calling for a variety of measures to be included in the green deal, reflecting debates over a fully renewable grid by 2030 in other jurisdictions, including a change to the EU’s energy taxation regime which incentivizes a switch from fossil fuel to electricity consumption.

“Electrification is the most important solution to turn the vision of a fossil-free Europe into reality,” said Laurence Tubiana, CEO of the European Climate Foundation, one of the signatories, and co-architect of the Paris Agreement.

“We are determined to deliver, but we must be mindful of the different starting points and secure sufficient financing to ensure a fair transition”, said Magnus Hall, President of electricity industry association Eurelectric, another signatory.

The energy taxation issue has been particularly tricky for the EU, since any change in taxation rules requires the unanimous consent of all 28 EU countries. But experts say that current taxation structures are subsidizing fossil fuels and punishing electricity, as recent UK net zero policy changes illustrate, and unless this is changed the European Green Deal can have little effect.

“Yes this issue will be addressed in the incoming commission once it takes up its function,” Juul-Jørgensen said in response to an audience question. “We all know the challenge - the unanimity requirement in the Council - and so I hope that member states will agree to the direction of work and the need to address energy taxation systems to make sure they’re consistent with the targets we’ve set ourselves.”

But some are concerned that the transformation envisioned by the green deal will have negative impacts on some of the most vulnerable members of society, including those who work in the fossil fuel sector.

This week the Centre on Regulation in Europe sent an open letter to Frans Timmermans, the Commission Vice President in charge of climate, warning that they need to be mindful of distributional effects. These worries have been heightened by the yellow vest protests in France, which were sparked by French President Emmanuel Macron’s attempt to increase fuel taxes for non-electric cars.

“The effectiveness of climate action and sustainability policies will be challenged by increasing social and political pressures,” wrote Máximo Miccinilli, the center’s director for energy. “If not properly addressed, those will enhance further populist movements that undermine trust in governance and in the public institutions.”

Miccinilli suggests that more research be done into identifying, quantifying and addressing distributional effects before new policies are put in place to phase out fossil fuels. He proposes launching a new European Observatory for Distributional Effects of the Energy Transition to deal with this.

EU national leaders are expected to vote on the 2050 decarbonization target, building on member-state plans such as Spain's 100% renewable electricity goal by mid-century, at a summit in Brussels on December 12, and Von der Leyen will likely unveil her European Green Deal in March.

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Alberta-BC Pipeline Dispute centers on Trans Mountain expansion, diluted bitumen shipments, federal approval, spill response capacity, and electricity trade, as Alberta suspends power talks and Ottawa insists the Kinder Morgan project proceeds in national interest.

Key Points

Dispute over Trans Mountain expansion, bitumen limits, and jurisdiction between Alberta, B.C., and Canada.

✅ Alberta suspends BC electricity talks as leverage

✅ Ottawa affirms federal approval and spill response

✅ BC plans advisory panel on diluted bitumen risks

Alberta Premier Rachel Notley says her government is suspending talks with British Columbia on the purchase of electricity from the western province.

It’s the first step in Alberta’s fight against the B.C. government’s proposal to obstruct the Kinder Morgan oil pipeline expansion project by banning increased shipments of diluted bitumen to the province’s coast.

Up to $500 million annually for B.C.’s coffers from electricity exports hangs in the balance, Notley said.

“We’re prepared to do what it takes to get this pipeline built — whatever it takes,” she told a news conference Thursday after speaking with Prime Minister Justin Trudeau on the phone.

Notley said she told Trudeau, who’s in Edmonton for a town-hall meeting, that the federal government needs to act decisively to end the dispute.

Speaking on Edmonton talk radio station CHED earlier in the day, Trudeau said the pipeline expansion is in the national interest and will go ahead, even as the federal government undertakes a study on electrification across sectors.

“That pipeline is going to get built,” Trudeau said. “We will stand by our decision. We will ensure that the Kinder Morgan pipeline gets built.”

B.C.’s environment minister has said his minority government plans to ban increased shipments until it can determine that shippers are prepared and able to properly clean up a spill, and, separately, has implemented an electricity rate freeze affecting consumers. He said he will establish an independent scientific advisory panel to study the issue.

The move infuriated Notley, who has accused B.C. of trying to change the rules after the federal government gave the project the green light. B.C. has the right to regulate how any spills would be cleaned up, but can’t dictate what flows through pipelines, she said.

Trudeau said Canada needs to get Alberta’s oil safely to markets other than the U.S. energy market today. He said the federal government did the research and has spent billions on spill response.

“The Kinder Morgan pipeline is not a danger to the B.C. coast,” he said.

Notley said she thanked Trudeau for his assurance that the project will go ahead, but the federal government has to do more to ensure the pipeline’s expansion.

“This is not an Alberta-B.C. issue. This is a Canada-B.C. issue,” she said. “This kind of uncertainty is bad for investment and bad for working people

“Enough is enough. We need to get these things built.”

B.C. Premier John Horgan said his government consulted Alberta and Ottawa about his province’s intentions, noting that Columbia River Treaty talks also shape regional electricity policy.

“I don’t see what the problem is,” Horgan said Thursday at a school opening north of Kelowna, B.C. “It’s within our jurisdiction to put in place regulations to protect the public interest.

“That’s what we are doing.”

He downplayed any possibility of court action or sanctions by Alberta.

“There’s nothing to take to court,” Horgan said. “We are consulting with the people of B.C. It’s way too premature to talk about those sorts of issues.

“Sabre-rattling doesn’t get you very far.”

Speaking in Ottawa, Natural Resources Minister Jim Carr wouldn’t say what Canada might do if British Columbia implements its regulation.

“That’s speculative,” said Carr.

He noted at this point, B.C. has just pledged to consult. He said the federal government heard from thousands of people before the pipeline was approved.

“That’s what they have announced — an intention to consult. We have already consulted.”

B.C.’s proposal creates more uncertainty for Kinder Morgan’s already-delayed Trans Mountain expansion project that would nearly triple the capacity of its pipeline system to 890,000 barrels a day.

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California Grid Modernization Funding will upgrade transmission and distribution, boost grid resilience, enable renewable energy integration, expand energy storage, and deploy smart grid controls statewide with over $500 million in federal infrastructure investment.

Key Points

Federal support to harden California's grid, integrate renewables, add storage, and deploy smart upgrades for reliability.

✅ Strengthens transmission and distribution for wildfire and heat resilience

✅ Integrates solar and wind with storage and advanced grid controls

✅ Deploys smart meters, DER management, and modern cybersecurity

California has recently been awarded over $500 million in federal funds to significantly improve and modernize its power grid. This substantial investment marks a pivotal step in addressing the state’s ongoing energy challenges, enhancing grid resilience, and supporting its ambitious climate goals. The funding, announced by federal and state officials, is set to bolster California’s efforts to upgrade its electrical infrastructure, integrate renewable energy sources, and ensure a more reliable and sustainable energy system for its residents.

California's power grid has faced numerous challenges in recent years, including extreme weather events, high energy demand, and an increasing reliance on renewable energy sources. The state's electrical infrastructure has struggled to keep pace with these demands, leading to concerns about reliability, efficiency, and the capacity to handle new energy technologies. The recent federal funding is a critical component of a broader strategy to address these issues and prepare the grid for future demands.

The $500 million in federal funds is part of a larger initiative to support energy infrastructure projects across the United States, including a Washington state grant that strengthens regional infrastructure. The investment aims to modernize aging grid systems, improve energy efficiency, and enhance the integration of renewable energy sources. For California, this funding represents a significant opportunity to address several key areas of concern in its power grid.

One of the primary objectives of the funding is to enhance the resilience of the power grid. California has experienced a series of extreme weather events, including wildfires and heatwaves, driven in part by climate change impacts across the U.S., which have put considerable strain on the electrical infrastructure. The new investment will support projects designed to strengthen the grid’s ability to withstand and recover from these events. This includes upgrading infrastructure to make it more robust and less susceptible to damage from natural disasters.

Another key focus of the funding is the integration of renewable energy sources. California is a leader in the adoption of solar and wind energy, and the state has set ambitious goals for increasing its use of clean energy. However, integrating these variable energy sources into the grid presents technical challenges, including ensuring a stable and reliable power supply. The federal funds will be used to develop and deploy advanced technologies that can better manage and store renewable energy, such as battery storage systems, improving the overall efficiency and effectiveness of the grid.

In addition to resilience and renewable integration, the funding will also support efforts to modernize grid infrastructure. This includes upgrading transmission and distribution systems, implementing smarter electricity infrastructure and smart grid technologies, and enhancing grid management and control systems. These improvements are essential for creating a more flexible and responsive power grid that can meet the evolving needs of California’s energy landscape.

The investment in grid modernization also aligns with California’s broader climate goals. The state has set targets to reduce greenhouse gas emissions and increase the use of clean energy sources as it navigates keeping the lights on during its energy transition. By improving the power grid and supporting the integration of renewable energy, California is making progress toward achieving these goals while also creating jobs and stimulating economic growth.

The allocation of federal funds comes at a crucial time for California. The state has faced significant challenges in recent years, including power outages, energy reliability issues, and increasing energy costs that make repairing California's grid especially complex today. The new funding is expected to address many of these concerns by supporting critical infrastructure improvements and ensuring that the state’s power grid can meet current and future demands.

Federal and state officials have expressed strong support for the funding and its potential impact. The investment is seen as a major step forward in creating a more resilient and sustainable energy system for California. It is also expected to serve as a model for other states facing similar challenges in modernizing their power grids and integrating renewable energy sources.

The federal funding is part of a broader push to address infrastructure needs across the country. The Biden administration has prioritized investment in energy infrastructure, including a $34 million DOE initiative supporting grid improvements, as part of its broader agenda to combat climate change and build a more sustainable economy. The funding for California’s power grid is a reflection of this commitment and an example of how federal resources can support state and local efforts to improve infrastructure and address pressing energy challenges.

In summary, California’s receipt of over $500 million in federal funds represents a significant investment in the state’s power grid. The funding will support efforts to enhance grid resilience, integrate renewable energy sources, and modernize infrastructure. As California continues to face challenges related to extreme weather, energy reliability, and climate goals, this investment will play a crucial role in building a more reliable, efficient, and sustainable energy system. The initiative also highlights the importance of federal support in addressing infrastructure needs and advancing environmental and economic goals.

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New York Renewable Energy Contracts secure 23 projects totaling 2.3 GW, spanning offshore wind, solar, and battery storage under CLCPA goals, advancing 70% by 2030, a carbon-free 2040 grid, grid reliability, and green jobs.

Key Points

State agreements securing 23 wind, solar, and storage projects (2.3 GW) to meet CLCPA clean power targets.

✅ 2.3 GW across 23 wind, solar, and storage projects statewide

✅ Supports 70% renewables by 2030; carbon-free grid by 2040

✅ Drives emissions cuts, grid reliability, and green jobs

In a significant milestone for the state’s clean energy ambitions, New York has finalized contracts with 23 renewable energy projects, as part of large-scale energy projects underway in New York, totaling a combined capacity of 2.3 gigawatts (GW). This move is part of the state’s ongoing efforts to accelerate its transition to renewable energy, reduce carbon emissions, and meet the ambitious targets set under the Climate Leadership and Community Protection Act (CLCPA), which aims to achieve a carbon-free electricity grid by 2040.

A Strong Commitment to Renewable Energy

The 23 projects secured under these contracts represent a diverse range of renewable energy sources, including wind, solar, and battery storage. Together, these projects are expected to contribute significantly to New York’s energy grid, generating enough clean electricity to power millions of homes. The deal is a key component of New York’s broader strategy to achieve a 70% renewable energy share in the state’s electricity mix by 2030 and to reduce greenhouse gas emissions by 85% by 2050.

Governor Kathy Hochul celebrated the agreements as a major step forward in the state’s commitment to combating climate change while creating green jobs and economic opportunities. “New York is leading the nation in its clean energy goals, and these projects will help us meet our bold climate targets while delivering reliable and affordable energy to New Yorkers,” Hochul said in a statement.

The Details of the Contracts

The 23 projects span across various regions of the state, with an emphasis on areas that are well-suited for renewable energy development, such as upstate New York, which boasts vast open spaces ideal for large-scale solar and wind installations and the state is investigating sites for offshore wind projects along the coast. The contracts finalized by the state will ensure a steady supply of clean power from these renewable sources, helping to stabilize the grid and reduce reliance on fossil fuels.

A significant portion of the new renewable capacity will come from offshore wind projects, which have become a cornerstone of New York’s renewable energy strategy. Offshore wind has the potential to provide large amounts of electricity, and the state recently greenlighted the country's biggest offshore wind farm to date, taking advantage of the state's proximity to the Atlantic Ocean. Several of the contracts finalized include offshore wind farm projects, which are expected to be operational within the next few years.

In addition to wind energy, solar power continues to be a critical component of the state’s renewable energy strategy. The state has already made substantial investments in solar energy, having achieved solar energy goals ahead of schedule recently, and these new contracts will further expand the state’s solar capacity. The inclusion of battery storage projects is another important element, as energy storage solutions are vital to ensuring that renewable energy can be effectively utilized, even when the sun isn’t shining or the wind isn’t blowing.

Economic and Job Creation Benefits

The finalization of these 23 contracts will not only bring significant environmental benefits but also create thousands of jobs in the renewable energy sector. Construction, maintenance, and operational jobs will be generated throughout the life of the projects, benefiting communities across the state, including areas near Long Island's South Shore wind proposals that stand to gain from new investment. The investment in renewable energy is expected to support New York’s recovery from the economic impacts of the COVID-19 pandemic, contributing to the state’s clean energy economy and providing long-term economic stability.

The state's focus on clean energy also provides opportunities for local businesses, highlighted by the first Clean Energy Community designation in the state, as many of these projects will require services and materials from within New York State. Additionally, Governor Hochul’s administration has made efforts to ensure that disadvantaged communities and workers from underrepresented backgrounds will have access to job training and employment opportunities within the renewable energy sector.

The Path Forward: A Clean Energy Future

New York’s aggressive move toward renewable energy is indicative of the state’s commitment to addressing climate change and leading the nation in clean energy innovation. By locking in contracts for these renewable energy projects, the state is not only securing a cleaner future but also ensuring that the transition is fair and just for all communities, particularly those that have been historically impacted by pollution and environmental degradation.

While the finalized contracts mark a major achievement, the state’s work is far from over. The completion of these 23 projects is just one piece of the puzzle in New York’s broader strategy to decarbonize its energy system. To meet its ambitious targets under the CLCPA, New York will need to continue investing in renewable energy, energy storage, grid modernization, and energy efficiency programs.

As New York moves forward with its clean energy transition, and as BOEM receives wind power lease requests in the Northeast, the state will likely continue to explore new technologies and innovative solutions to meet the growing demand for renewable energy. The success of the 23 finalized contracts serves as a reminder of the state’s leadership in the clean energy space and its ongoing efforts to create a sustainable, low-carbon future for all New Yorkers.

New York’s decision to finalize contracts with 23 renewable energy projects totaling 2.3 gigawatts represents a bold step toward meeting the state’s clean energy and climate goals. These projects, which include a mix of wind, solar, and energy storage, will contribute significantly to reducing the state’s reliance on fossil fuels and lowering greenhouse gas emissions. With the additional benefits of job creation and economic growth, this move positions New York as a leader in the nation’s transition to renewable energy and a sustainable future.

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Blood Nickel spotlights ethical sourcing in the EV supply chain, linking nickel mining to human rights, environmental impact, ESG standards, and Canadian leadership in sustainable extraction, transparency, and community engagement across global battery materials markets.

Key Points

Blood Nickel is nickel mined under unethical or harmful conditions, raising ESG, human rights, and environmental risks.

✅ Links EV battery supply chains to social and environmental harm

✅ Calls for transparency, traceability, and ethical sourcing standards

✅ Highlights Canada's role in sustainable mining and community benefits

The rise of electric vehicles (EVs) has sparked a surge in demand for essential battery components, particularly nickel, and related cobalt market pressures essential for their batteries. This demand has ignited concerns about the environmental and social impacts of nickel mining, particularly in regions where standards may not meet global sustainability benchmarks. This article explores the concept of "blood nickel," its implications for the environment and communities, and Canada's potential role in promoting sustainable mining practices.

The Global Nickel Boom

As the automotive industry shifts towards electric vehicles, nickel has emerged as a critical component for lithium-ion batteries due to its ability to store energy efficiently. This surge in demand has led to a global scramble for nickel, with major producers ramping up extraction efforts to meet market needs amid EV shortages and wait times that underscore supply constraints. However, this rapid expansion has raised alarms about the environmental consequences of nickel mining, including deforestation, water pollution, and carbon emissions from energy-intensive extraction processes.

Social Impacts: The Issue of "Blood Nickel"

Beyond environmental concerns, the term "blood nickel" has emerged to describe nickel mined under conditions that exploit workers, disregard human rights, or fail to uphold ethical labor standards. In some regions, nickel mining has been linked to issues such as child labor, unsafe working conditions, and displacement of indigenous communities. This has prompted calls for greater transparency and accountability in global supply chains, with initiatives like U.S.-ally efforts to secure EV metals aiming to align sourcing standards, to ensure that the benefits of EV production do not come at the expense of vulnerable populations.

Canada's Position and Potential

Canada, home to significant nickel deposits, stands at a pivotal juncture in the global EV revolution, supported by EV assembly deals in Canada that strengthen domestic manufacturing. With its robust regulatory framework, commitment to environmental stewardship, and advanced mining technologies, Canada has the potential to lead by example in sustainable nickel mining practices. Canadian companies are already exploring innovations such as cleaner extraction methods, renewable energy integration, and community engagement initiatives to minimize the environmental footprint and enhance social benefits of nickel mining.

Challenges and Opportunities

Despite Canada's potential, the mining industry faces challenges in balancing economic growth with environmental and social responsibility and building integrated supply chains, including downstream investments like a battery plant in Niagara that can connect materials to markets. Achieving sustainable mining practices requires collaboration among governments, industry stakeholders, and local communities to establish clear guidelines, monitor compliance, and invest in responsible resource development. This approach not only mitigates environmental impacts but also fosters long-term economic stability and social well-being in mining regions.

Pathways to Sustainability

Moving forward, Canada can play a pivotal role in shaping the global nickel supply chain by promoting transparency, ethical sourcing, and environmental stewardship. This includes advocating for international standards that prioritize sustainable mining practices, supporting research and development of cleaner technologies, and leveraging adjacent resources such as Alberta lithium potential to diversify battery supply chains, while fostering partnerships with global stakeholders to ensure a fair and equitable transition to a low-carbon economy.

Conclusion

The rapid growth of electric vehicles has propelled nickel into the spotlight, highlighting both its strategic importance and the challenges associated with its extraction. As global demand for "green" metals intensifies, addressing the concept of "blood nickel" becomes increasingly urgent, even as trade measures like tariffs on Chinese EVs continue to reshape market incentives. Canada, with its rich nickel reserves and commitment to sustainability, has an opportunity to lead the charge towards ethical and responsible mining practices. By leveraging its strengths in innovation, regulation, and community engagement, Canada can help forge a path towards a more sustainable future where electric vehicles drive progress without compromising environmental integrity or social justice.

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Muskrat Falls rate mitigation offsets Newfoundland Power's rate stabilization decrease as NL Hydro begins cost recovery; Public Utilities Board approval enables collections while Labrador-Island Link nears commissioning, stabilizing electricity rates despite megaproject delays, overruns.

Key Points

Muskrat Falls rate mitigation is NL Hydro's cost recovery via power rates to stabilize bills as commissioning nears.

✅ Offsets 6.4% decrease with a 6.1% rate increase

✅ About 6% now funds NL Hydro's rate mitigation

✅ Collections begin as Labrador-Island Link nears commissioning

With their July electricity bill, Newfoundland Power customers have begun paying for Muskrat Falls, though a lump-sum credit was also announced to offset costs and bills haven't significantly increased — yet.

In a July newsletter, Newfoundland Power said electricity bills were set to decrease by 6.4 per cent as part of the annual rate stabilization adjustment, which reflects the cost of electricity generation.

Instead, that decrease has been offset by a 6.1 increase in electricity rates so Newfoundland and Labrador Hydro can begin recovering the cost of Muskrat Falls, with a $5.2-billion federal package also underpinning the project, the $13-billion hydroelectric megaproject that is billions over budget and years behind schedule.

That means for residential customers, electricity rates will decrease to 12.346 cents per kilowatt, though the basic customer charge will go up slightly from $15.81 to $15.83. According to an N.L. Hydro spokesperson, about six per cent of electricity bills will now go toward what it calls a "rate mitigation fund." 

N.L. Hydro claims victory in Muskrat Falls arbitration dispute with Astaldi
Software troubles blamed for $260M Muskrat Falls cost increase, with N.L. power rates stable for now
The spokesperson said N.L. Hydro is expecting the rate increase to result in $43 million this year, according to a recent financial update from the energy corporation — a tiny fraction of the project's cost. 

N.L. Hydro asked the Public Utilities Board to approve the rate increase, a process similar to Nova Scotia's recent 14% approval by its regulator, in May. In a letter, Energy, Industry and Technology Minister Andrew Parsons supported the increase, though he asked N.L. Hydro to keep electricity rates "as close to current levels as possible. 

Province modifies order in council
Muskrat Falls is not yet fully online — largely due to software problems with the Labrador-Island Link transmission line — and an order in council dictated that ratepayers on the island of Newfoundland would not begin paying for the project until the project was fully commissioned. 

The provincial government modified that order in council so N.L. Hydro can begin collecting costs associated with Muskrat Falls once the project is "nearing" commissioning.

In June, N.L. Hydro said the project was expected to finally be completed by the end of the year.

In an interview with CBC News, Progressive Conservative interim leader David Brazil said the decision to begin recovering the cost of Muskrat Falls from consumers should have been delayed.

"There was an opportunity here for people to get some reprieve when it came to their electricity bills and this administration chose not to do that, not to help the people while they're struggling," he said.

In a statement, Parsons said reducing the rate was not an option, and would have resulted in increased borrowing costs for Muskrat Falls.

"Reducing the rate for one year to have it increase significantly the following year is not consistent with rate mitigation and also places an increased financial burden on taxpayers one year from now," Parsons said.

Decision 'reasonable': Consumer advocate
Brazil said his party didn't know the payments from Muskrat Falls would start in July, and criticized the government for not being more transparent.

A person wearing a blue shirt and black blazer stands outside on a lawn.
N.L. consumer advocate Dennis Browne says it makes sense to begin recouping the cost of Muskrat Falls. (Garrett Barry/CBC)
Newfoundland and Labrador consumer advocate Dennis Browne said the decision to begin collecting costs from consumers was "reasonable."

"We're into a financial hole due to Muskrat Falls, and what has happened is in order to stabilize rates, we have gone into rate stabilization efforts," he said.

In February, the provincial and federal governments signed a complex agreement to shield ratepayers aimed at softening the worst of the financial impact from Muskrat Falls. Browne noted even with the agreement, the provincial government will have to pay hundreds of millions in order to stabilize electricity rates.

"Muskrat Falls would cost us $0.23 a kilowatt, and that is out of the range of affordability for most people, and that's why we're into rate mitigation," he said. "This was part of a rate mitigation effort, and I accepted it as part of that."

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