A multi-billion-dollar electric power generation asset and transmission deal between provincial utilities Hydro-Quebec and New Brunswick Power has been canceled.
Hydro-Quebec was supposed to pay C$3.2 billion (US$3.13 billion) for the bulk of NB Power’s power generation assets and 670 megawatts of transmission rights to New England.
Hydro-Quebec sought an amendment after its due diligence review found more risks involved in the buy than what the firm was willing to make, said New Brunswick Premier Shawn Graham.
The agreement, which would have given Hydro-Quebec better access to markets in the northeastern United States, was scaled back from a C$4.75 billion (US$4.49 billion) deal announced in October 2009.
Generating assets were to include seven hydroelectric generating facilities and two diesel peaking units located on the main grid, plus firm transmission rights associated with those assets. Hydro-Quebec also was to acquire the Point Lepreau nuclear facility for C$1.4 billion upon its successful refurbishment, on or about Jan. 1, 2011.
In other news, a pair of Vermont utilities recently signed a memorandum of understanding with Hydro-Quebec, setting the stage for a new power supply contract for Vermont customers.
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