Vermont, Hydro Quebec reach preliminary agreement in power contract

A pair of Vermont utilities have signed a memorandum of understanding with provincial utility Hydro-Quebec, setting the stage for a new power supply contract for Vermont customers.

Canada’s largest electric utility will sell power to Green Mountain Power Corp. and Central Vermont Public Service Corp., replacing existing contracts with the utilities that were set to expire in 2015, according to the Associated Press.

Under the MOU, the term sheet is confidential to protect market-sensitive information, but the companies announced that they anticipate purchases totaling up to about 225 megawatts starting in November 2012 and ending in 2038. The term sheet includes a price-smoothing mechanism that will shield customers from volatile market spikes over this period, reports indicate.

Vermont gets a third of its power from Hydro-Quebec’s hydroelectric projects on James Bay, Vermont’s WCAX said on its Web site.

In other news, Hydro-Quebec recently agreed to buy most of New Brunswick Power’s generating facilities. (HydroWorld 1/26/10)

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