Provincial utility Manitoba Hydro and Minnesota-based Xcel Energy have enhanced and extended by 10 years a power purchase agreement worth nearly $3 billion, Manitoba Hydro announced.
The power sale starts in 2015 and will extend contracts through 2025. Under the agreement, Xcel Energy will purchase between 375 and 500 megawatts 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 tons 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.
In other news, AltaGas Income Trust, through an indirect wholly-owned subsidiary, has signed a 60-year CPI indexed electricity purchase agreement with BC Hydro for its 195-MW Forrest Kerr run-of-river hydro project.
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