New Deal Worth Close to $3 Billion: Selinger
Manitoba Hydro and Xcel Energy of Minneapolis have enhanced and extended by 10 years a significant power purchase agreement worth close to $3 billion, Premier Greg Selinger announced today.
“This agreement builds on an energy trading relationship that spans three decades and is another boost for our export markets,” said Selinger. “Continuing to build clean renewable hydro energy in Manitoba is growing our economy and showing the world what we have to offer.”
“Revenues will continue to flow to Manitoba to help support low rates for all Manitoba customers, while our export customers benefit from a reliable, low-carbon source of power for their use,” said Manitoba Hydro president and CEO Bob Brennan. “In addition, a 350-megawatt seasonal diversity agreement allows for an exchange of electricity between the utilities based on a summer peak on the U.S. side and a winter peak for Manitoba.”
The power sale starts in 2015 and will extend contracts through 2025. Under the agreement, Xcel Energy will purchase between 375 and 500 MW of power from Manitoba Hydro. The agreement is subject to approval by the National Energy Board of Canada and the Minnesota Public Utilities Commission.
Xcel Energy estimates that continuation of its contract with Manitoba Hydro will avoid approximately 7.6 million tonnes of carbon emissions that might otherwise result if the utility had to rely on natural gas-fired generating capacity to meet anticipated demand over the 10-year contract period.
Manitoba Hydro has had a series of power sale agreements with Xcel Energy, the first dating back to the early 1970s. Most recently, in 2002, the two signed an agreement for a 10-year, 500-MW power sale that took effect in 2005.
Manitoba Hydro is currently constructing the 200 megawatt Wuskwatim Generating Station in partnership with the Nisichawayasihk Cree Nation and has plans for two additional hydroelectric generating stations, Keeyask and Conawapa. There are also additional export sales pending with Minnesota Power and Wisconsin Public Service.
Xcel Energy is a major U.S. electricity and natural gas company that provides a comprehensive portfolio of energy-related products and services to 3.4 million electricity customers and 1.9 million natural gas customers through its regulated operating companies in eight western and Midwestern states. Company headquarters are located in Minneapolis. More information is available at http://www.xcelenergy.com/Minnesota/Company/Pages/Home.aspx.