The agreement details an initial purchase by Minnesota Power of surplus energy to begin in 2008, and a 15-year term purchase of 250MW beginning in around 2020.
Minnesota Power said that the long-term sale will require construction of hydroelectric facilities in northern Manitoba and major new transmission facilities between Canada and the US. Minnesota Power and Manitoba Hydro each has one year to complete negotiations and sign definitive agreements.
The agreements would be subject to the approval of the Minnesota Public Utilities Commission. The purchase is reported to be consistent with the energy strategy laid out in Minnesota Power’s integrated resource plan.
Don Shippar, chairman and CEO of Allete, said: We are pleased to co-operate with our neighbor and long-term utility partner to secure this clean, carbon-free energy resource for our customers. As new industrial projects are proposed in our region, Minnesota Power will continue to deliver innovative ways to meet the associated energy needs.
