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Manitoba Hydro, Xcel Energy extend power agreement

Manitoba Hydro and Minneapolis’ Xcel Energy have enhanced and extended by 10 years a significant power purchase agreement worth close to $3 billion, said Manitoba Premier Greg Selinger.

 

“This agreement builds on an energy trading relationship that spans three decades and is another boost for our export markets,” said Selinger.  “Continuing to build clean, renewable hydro energy in Manitoba is growing our economy and showing the world what we have to offer.”

 

“Revenues will continue to flow to Manitoba to help support low rates for all Manitoba customers, while our export customers benefit from a reliable, low-carbon source of power for their use,” said Manitoba Hydro president and CEO Bob Brennan.  “In addition, a 350-MW seasonal diversity agreement allows for an exchange of electricity between the utilities based on a summer peak on the U.S. side and a winter peak for Manitoba.”

 

The power sale starts in 2015 and will extend contracts through 2025. Under the agreement, Xcel Energy will purchase between 375 and 500 MW 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 tonnes 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.