Stephen Harper have decide to directly fund the Newfoundland Hydro project. This electricity is not for the province inner consumption but to be sold to de american. At that point the electricity of NF is directly in competitions with Hydro Quebec electricity. Hydro quebec was never funded by the federal, in fact all the money used to build quebec hydro power was bored in New-York, the toronto bank wasn't willing to rent the money.
Now the bottom line where everybody is a fool except Harper.
First, the american are actually not considering Hydro electricity to be a green source of energy the are willing to greener energy.
Second with the production of shall gaz, the price of electricity just got a big drop. So even if they manage to find a buyer, i got serious doute that they will manage to get enougth money to reach rentability. Even more if they build the submarine powerline. Actually in quebec presure groupe made of economist and environementalist is pressuring the quebec governement to stop La Romaine projet.
Third, the goal of Harper is not the developement of Harper but to consolidate is conservative base.