The existing agreements, which provide for the purchase of 850MW of renewable power from Manitoba Hydro, start to expire April 30, 2015.
As part of the transaction, Xcel Energy and Manitoba Hydro have extended agreements in which the companies exchange power seasonally. Xcel Energy purchases additional power during the summer when its customers’ power demand is higher and provides power to Manitoba Hydro in the winter when their customers’ power demand is higher. As the result, Xcel Energy needs fewer generating plants to provide power reliably.
Judy Poferl, president and CEO of Northern States Power Co-Minnesota, an Xcel Energy company, said: “We are pleased to continue our nearly 30-year power supply relationship with Manitoba Hydro. This partnership ensures the reliable flow of electricity to our customers across the Upper Midwest, and helps keep our rates reasonable and our environmental performance high.
“These agreements enable us to not only meet our customers’ energy needs, but also keep us on track toward reducing carbon emissions, and the electricity will be delivered over the existing transmission system.”
Bob Brennan, president and CEO of Manitoba Hydro, said: “Manitoba Hydro is very pleased to continue this trading relationship with Xcel Energy. Electricity trade provides environmental and economic benefits to all energy users in the region and makes the most efficient use of resources.”
Manitoba Hydro is a provincial Crown Corporation, providing electricity to over 527,000 customers throughout the province and natural gas service to over 263,000 customers in various communities. Nearly all of Manitoba’s electricity is generated from self-renewing waterpower at 14 hydroelectric generating stations.
