Posted on 04/03/2009 4:45:31 AM PDT by thackney
Newfoundland and Quebec reached what Premier Danny Williams described as a historic deal Thursday that will, for the first time, see Labrador hydroelectric power transmitted through Quebec to the North American marketplace.
Mr. Williams said the provinces energy corporation, Nalcor Energy, through its subsidiary, Newfoundland and Labrador Hydro, has signed an agreement to "wheel" power from the Upper Churchill Hydroelectric station through Quebec to the Canada-U.S. border.
"This is truly a historic and momentous occasion for the people of our province, as never before have we been granted access through the province of Quebec with our own power," he said.
Mr. Williams said the five-year transmission service agreement with Hydro-Quebec is expected to generate between $40-million and $80-million per year for the province.
He also said Newfoundland has signed a two-year deal with Emera Energy Inc., a subsidiary of Nova Scotia Power, which will market the power that flows through Hydro-Quebecs power lines to the Canada-U.S. border.
"At the present time, we are working with Emera Energy to have our power get to these markets," he said. "Our goal is to eventually develop the expertise at Nalcor so that we can act as seller into final markets."
Mr. Williams said the agreements mean the province will get the "lions share" of the profits from the sale of the power, and as the price of energy goes up, the revenue for the province will also increase.
The premier said the move will not take any power away from communities in Labrador which will get its power first, but the surplus energy of between 130 and 250 megawatts of power, generated by the Upper Churchill, will now be sold for the first time to North American markets.
The move may also put the province in a better position to develop the Lower Churchill hydro project, he said.
Newfoundland and Labrador Hydro has had a power purchase agreement with Hydro-Quebec for recall power from the Upper Churchill since 1998. The last renewal on that contract expired at the end of March.
"This is a significant development for us to share our excess green renewable energy with the rest of North America through our transmission access through Quebec and our subsequent arrangement directly with Emera Energy," said Kathy Dunderdale, minister of natural resources. "These markets are seeking clean, reliable energy, which we have in abundance."
Cant help notice the theme here...our neighbors up north seem to be doing a lot more to help their economy than we are doing in the USA....
While Canada grows economically...the US seems to just add illegals and H1Bs
You know that this will only add to the trade deficit we have with Canada, right?
Electric Power Industry - U.S. Electricity Imports from and Electricity Exports to Canada and Mexico |
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