April 17, 2008
Manitoba Hydro Reaches Arrangement To Sell Power To Wisconsin Public Service
– – –500-megawatt Deal Worth over $2 Billion: Doer
Manitoba Hydro has signed a ‘term sheet’ with Wisconsin Public Service (WPS) to provide up to 500 megawatts of clean, renewable hydro power over 15 years starting in 2018, Premier Gary Doer announced today.
“We are pleased to have come to this agreement with Wisconsin Public Service that will significantly increase our exports, allow us to maintain our low energy rates for domestic users and reduce the production of greenhouse gases by reducing the need for thermal generation in the United States,” said Doer.
Electricity exports generated $592 million in revenues for Manitoba Hydro last year and are expected to produce $5.5 billion in revenues over the next 10 years. This deal is worth over $2 billion. Manitoba Hydro export sales, on average, account for more than 40 per cent of Manitoba Hydro’s electricity revenues.
“Our government is developing our province’s clean, renewable energy to its full potential for the benefit of all Manitobans,” said Finance Minister Greg Selinger, minister responsible for Manitoba Hydro. “We are moving forward with construction on the Wuskwatim dam, working on a co-operative agreement with First Nations on Keeyask and continuing development work on the Conawapa generating station.”
“This proposed major agreement with WPS will trigger additional generating and transmission facilities, adding to the capability and reliability of the regional power system,” noted Bob Brennan, Manitoba Hydro president and CEO. “At the same time, new northern hydroelectric developments will bring direct benefits to local Aboriginal communities.”
Manitoba Hydro recently signed a term sheet with Minnesota Power, an ALLETE company, to provide 250 megawatts (MW) of hydro power over 15 years starting in 2020 as well as well surplus energy starting this year. In early 2007, Manitoba Hydro and Wisconsin Public Service renewed a 100 MW export agreement.
The long-term sale will require the construction of the Bipole III transmission line as well as hydroelectric facilities in northern Manitoba and a major transmission line between Canada and the United States.
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