the bay d'espoir hydroelectric development was undertaken to provide the province with a large source of low-cost electric power which would allow the island's utilities to extend their services, stimulate the expansion of the industries already in the province and attract new industries to newfoundland and labrador. the electric reduction company of canada industries limited (erco), phosphorus plant at long harbour and the come by chance oil refinery at come by chance were built partially because of the availability of cheap power.