Manitoba said to sell $1.7 billion of hydro to US
Date: 12-Aug-02
Country: CANADA
Manitoba Hydro has signed a 10-year contract worth C$1.7 billion with its largest U.S. customer, Minnesota-based Xcel Energy , a newspaper reported last week.
The contract, to begin in 2005, will likely allow the province to focus on building several new megaprojects, the newspaper said.
Although utility officials did not comment on the price or amount of exported hydro, they told the Winnipeg Free Press that the price was higher than the current deal with Xcel.
As Manitoba Hydro's largest U.S. customer, Xcel is now paying the province more than $1.4 billion over 12 years for a 500-megawatt contract.
Manitoba had been working on the new agreement for the last two years, trying to secure sales at a time of U.S. market deregulation and subsequent unease about signing long-term deals.
Federal and state approval is still required for the agreement to take effect.
In the past, the northern Manitoba community of Cross Lake has battled Manitoba Hydro over the impact of flooding on traditional native hunting and fishing lands.
Last year a coalition of environmental groups threatened to block future sales by Manitoba to Xcel, accusing Manitoba Hydro of contributing to mass poverty in Cross Lake.
Manitoba has one of the lowest electricity rates in Canada.
Xcel Energy distributes electricity to nearly 3.2 million customers and natural gas to 1.7 million customers in 12 states in the western and midwestern United States. The company's regulated utilities have a 15,000-megawatt capacity, generated mostly by fossil fuels.
Manitoba premier Gary Doer and Manitoba Hydro were scheduled to make an announcement at a news conference last week.