NU, NStar seek connector to import Quebec hydro

23 December 2008

The companies want to sign a purchase power agreement (PPA) with Hydro-Quebec that will enable them to supply low-carbon power to New England. They propose the transmission link would have the capacity to transmit more than 1.2GW.

They have also signed a pact with a subsidiary of Hydro-Quebec, H.Q. Energy Services, for the exclusive development of the project. Planning work is being undertaken by another of Hydro-Quebec's subsidiaries, TransEnergie.

In a statement, the companies said that they plan to create a PPA structure that also allows other New England customers to participate in the import of hydroelectric power from the Canadian province.

NU is based in Connecticut, NStar in Massachusetts.

Thierry Vandal, president and chief executive of Hydro-Quebec, said that the utility was uniquely positioned to work with the companies to develop the project. 'Our natural resource base and New England's power markets combine to make a win-win transaction possible.'

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