The companies said that they anticipate purchases totaling up to about 225MW 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.
Under the accord, CVPS, GMP and Hydro-Quebec will negotiate final terms of the agreement over the next few months. The final 26-year agreement is expected to provide broad, scheduled energy delivery at a ‘good value’ for customers.
One of the key provisions of the agreement is for the Vermont General Assembly to enact legislation to designate large hydro, which would include Hydro-Quebec power, as renewable. Any renewable energy credit revenues for HQ power delivered over the Highgate Interconnection would be shared between the Vermont companies, benefiting their customers, and Hydro-Quebec.
The final agreement will be subject to Vermont Public Service Board approval and certain other conditions.
Jim Douglas, governor of Vermont, said: “Reaching a new long-term agreement with Hydro-Quebec is a good deal for ratepayers and strengthens the state’s economic future. This new contract will provide stable, clean, renewable power at a competitive price through 2038.”
Bob Young, president of CVPS and Mary Powell, president of GMP, said in a joint statement: “This agreement sets the stage for a new contract that will help us maintain what is arguably the cleanest power supply in the nation, while ensuring a relatively stable and affordable future for our customers.”
