“The message to Americans is that if you decide, for one reason or another, that this contract does not go ahead, Hydro-Québec has a thousand and one applications for this electricity,” says Sophie Brochu.
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Hydro-Quebec’s export contracts in New York and Massachusetts continue to be talked regarding.
At a time when Hydro is looking for 100 TWh by 2050 and Minister Pierre Fitzgibbon invites citizens to “energy sobriety”, the CEO of Hydro-Québec, Sophie Brochu, had to justify these contracts, which will send some 20 TWh of electricity south of the border for 20 and 25 years.
$10 billion deal
Hydro-Québec has committed to supplying 9.4 billion kilowatt hours per year for 20 years in Massachusetts. The contract will provide some $500 million in annual revenue to Hydro, or $10 billion over the life of the contract.
“Hydro-Québec is not in the business of getting out of its contracts. We honor the contracts we have. Today, it is our American partner, for the most part, who leads the legal battles. Hydro-Québec is doing what it has to do to honor its commitments, no more,” replied Ms.me Brochu during a press briefing following the unveiling of Hydro-Québec’s annual results.
Legal battles
The contract with Massachusetts is bogged down in legal battles, particularly in Maine, the state through which the transmission line must pass. Several citizens’ groups and environmental groups are once morest the project and are fighting once morest Hydro-Québec and its American partner, Central Maine Power (CMP).
“If the contract goes ahead, we will serve the contract. If the contract were to be terminated by the Americans or for a reason which we will not go into in detail, Hydro-Québec has neither the will nor contractually to say “game over, now I don’t play anymore”. We can’t do that. We have to do things well, ”explained Sophie Brochu.
“We, what we tell the Americans, is that we believe in it. The decision is made with you. And if you decide that for one reason or another this contract is not going ahead, Hydro-Québec has a thousand and one applications for this electricity, ”she argued.
Pierre F. Gingras, a former Hydro engineer now a consultant, is not surprised by the lack of enthusiasm aroused by the contract with Massachusetts.
“It’s electricity that we might have kept for ourselves. Hydro should take the opportunity to walk away, saying it doesn’t want to fight environmental groups, instead continuing to spend millions fighting them in court. Get out of the contract and enjoy a good environmental image,” he suggests.
Bill for New York
In addition, Minister Fitzgibbon tabled a bill on Wednesday morning to facilitate the realization of Hydro-Québec’s project to supply electricity to the City of New York, which includes the construction and operation of facilities intended to transport electricity between Hertel substation, in La Prairie, and an interconnection point in the Richelieu River, at the Canada-US border.
Historical results for Hydro
The state corporation announced its financial results today. Thanks to the sharp rise in prices on export markets and the cold winter temperatures observed at the beginning of the year, the net profit of the State corporation reached $4.557 billion in 2002, compared to $3.564 billion for the Previous exercice.
“Given these unprecedented results, Hydro-Québec will be able to pay its sole shareholder, the Government of Québec, a dividend of $3,418 million, the highest in its history,” said Jean-Hugues Lafleur. , Executive Vice President and Chief Financial Officer.
