Hydro-Quebec signs CAD1.5bn deal with Vermont utilities

Hydro-Quebec has signed a CAD1.5bn memorandum of understanding to supply two Vermont utilities, Central Vermont Services and Green Mountain Power with electricity for 26 years starting from 2012. Both companies already have contracts with Hydro-Quebec but they will expire between now and 2015. The amount of capacity under discussion is 225MW, slightly lower than the amount currently purchased from Hydro-Quebec, as both companies seek to diversify their energy mix.

A further deal could also be in the offering should the Vermont Yankee, the state’s only nuclear reactor be shut down. Late in February, the Vermont Senate voted to block the operation of the plant, beyond 2012. However, the vote could be reversed by the legislature in 2011-12. In related news, Premier Jean Charest said that the Vermont legislature is considering a bill that would recognise large hydropower projects as renewables, something that is not the case in several other US states. Charest believes that if the motion is passed than, other states could follow, boosting Hydro-Quebec’s potential export sales to the US. Currently exports account for eight per cent of the utility’s sales, but 32 per cent of its profits.