Northeast Utilities, NStar To Develop Power Line To Quebec
16 December 2008 - 5:07AM
Dow Jones News
Northeast Utilities (NU) and NStar (NST) said Monday that they
have signed an exclusive agreement with Hydro-Quebec to build a
high-voltage transmission line to boost imports from eastern Canada
into New England.
The two U.S. utility companies have filed a proposal with the
Federal Energy Regulatory Commission asking for approval for the
interconnection with Canada. The companies said in a press release
that the line, which would run from the Des Cantons substation in
Quebec to southern New Hampshire, would transmit at least 1,200
megawatts of power, or enough to supply around one million
homes.
The companies didn't include a cost estimate, but said the
project could meet nearly a third of New England's greenhouse-gas
reduction goals.
Province-owned Hydro-Quebec is aggressively expanding its
hydroelectricity output, rerouting rivers with U.S. exports in
mind. At the same time, New England utilities are looking for
cleaner sources of power to meet limits on carbon dioxide emissions
and ever-increasing requirements to use more power from renewable
sources.
"New England has some of the most ambitious environmental goals
in the nation," said Charles Shivery, Northeast Utilities chairman
and chief executive, in the release. "With this project, we can
help the region meet its energy, environmental and economic needs.
In addition, we will materially diversify New England's generation
mix."
Northeast Utilities, NStar and Hydro-Quebec have started
discussions about a long-term power purchase agreement. The
structure is expected to allow other utilities in New England to
participate in the pact, the companies said.
If the project wins FERC approval, the companies would negotiate
the purchase agreement and a development plan to build the line. NU
and NStar would own the U.S. portion of the line.
Already one of the largest generators in North America with an
installed capacity of 36,000 megawatts, Hydro-Quebec is expanding.
Projects include the expansion of hydroelectric generation near
James Bay to produce an additional 8.5 billion kilowatt hours of
power a year. Hydro-Quebec is next scheduled to build a
1,550-megawatt hydro facility on the Romaine River, for an
estimated cost of $6.5 billion.
Northeast Utilities owns electricity utilities in Connecticut,
Massachusetts and New Hampshire, while NStar owns and operates a
power utility in Massachusetts.
-By Mark Peters, Dow Jones Newswires; 201-938-4604;
mark.peters@dowjones.com
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