Newfoundland and Labrador is now selling power into the North American market for the first time through a new agreement with Hydro Quebec (HQ) that is expected to generate between $40 million to $80 million per year for the province.
The provincial government announced today it has signed a five-year transmission service agreement with HQ under that power company's Open Access Transmission Tariff.
The provincial government has also signed a two-year deal with Emera Energy Inc., a subsidiary of Nova Scotia Power, which will market the power which flows through HQ's power lines to the Canada-U.S. border.
Premier Danny Williams said the agreements mean the province will get the "lion's share" of the profits from the sale of the power. He said the $40 million to $80 million per year expected for the province comes after HQ and Emera Energy take their cuts.
Williams told members of the media today that, as the price of energy goes up, the revenue for the province will also increase.
The premier said the move will not take any power away from communities in Labrador which will get its power first, but the surplus energy of between 130 and 250 megawatts of power, generated by the Upper Churchill, will now be sold for the first time to North American markets.
The move may also put the province in a better position to develop the Lower Churchill, he said.
