Newfoundland and Labrador Premier Danny Williams turned up the volume Wednesday on his opposition to Hydro-Quebec's planned acquisition of New Brunswick Power.

Williams, whose province has had energy-related spats with Quebec in the past, expressed his concerns about the deal in a letter to New Brunswick Premier Shawn Graham.

"I have great fears and reservations about the stranglehold that Hydro-Quebec could put in place over the Atlantic region," Williams wrote in a letter to Graham.

"I hope that you share this concern given your extensive statements on your desire to see your province as an energy hub."

Williams also said he's disappointed that his province was not made aware of the extent of New Brunswick's negotiations with Quebec.

Beef with Hydro-Quebec

Williams has accused Hydro-Quebec of trying to block his plans to develop the Lower Churchill hydroelectric project and sell the energy from that development to the United States, and of taking an unfair share of profits from the 1969 contract to develop the Churchill Falls project in Labrador.

"Our province feels compelled to look into the potential of anti-competitive behaviour on the part of Hydro-Quebec given the potential monopoly that could exist as the result of an agreement between them and NB Power," Williams wrote.

Graham has issued assurances to Williams that Newfoundland and Labrador would have access to transmission lines in New Brunswick for routing any of its hydroelectric power to the U.S., but Williams has said he isn't convinced.

Southern Opportunities

An expert on the history of hydroelectricity in Quebec said such a deal could give Hydro-Quebec a golden opportunity to build on its exports to the northeastern United States.

David Massell, a professor at the University of Vermont, said Hydro-Quebec already supplies Vermont with a third of its power.

"To the extent Hydro-Quebec secures the use of that network, then that gives Hydro-Quebec additional leverage in the high-stakes game of power transmission and power sales to New England," Massell said.

Nova Scotia wary

Nova Scotia Premier Darrell Dexter said he was advised about the deal in a phone call Wednesday with Graham.

Dexter refused to release details, but also expressed his concerns about an agreement that he says would set back the interests of the Atlantic region.

"I have over the last number of months been looking to promote Maritime interests," Dexter said.

"There's a difference between promoting Maritime interests and selling Maritime interests."

Dexter said he didn't want to say more about Nova Scotia's position until the announcement was made.

David Hay, CEO of NB Power, and Thierry Vandal, CEO of Hydro-Quebec, will take part in Thursday's announcement at the residence of New Brunswick's lieutenant-governor.

During the 2006 provincial election campaign, Graham promised to maintain NB Power as a publicly owned utility.