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Hydro Quebec Moves to Export Energy Through Maine
10/30/2009   Reported By: A.J. Higgins

A deal between two major government-owned utilities in eastern Canada could have a major impact on Maine. Hydro Quebec has announced that it will acquire New Brunswick Power for $4.4 billion dollars U.S. Hydro-Quebec has long sought an entry into the lucrative New England electricity market. That entry may now come through the state of Maine.

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Hydro Quebec Moves to Export Energy Through Maine Listen (Duration: 3:58)

With its mountaintop wind turbine generators, proposed offshore wind turbines and plans for a $1.5 billion upgrade by Central Maine Power to the state's power grid, Maine is banking heavily on energy as it plots its economic future. The business plan has had many variables, and now comes Hydro Quebec's purchase of New Brunswick Power.

"Well, I think it's a significant event that just occurred, because it really changes, possibly, the playing field," says state Sen. Barry Hobbins, a Saco Democrat who chairs the Legislature's Utilities and Energy Committee. Hobbins says Maine policy makers will now have to take a close look at how all of the parts might fit together over the long term.

"We have so many issues that have to be discussed through the Ocean Energy Task Force, through the commission on the whole idea of corridors in Maine, which is being developed right now, so this has to be part of the mix, and I think there has to be, possibly, a step back to see what effect it will have on the governor's overall plan," Hobbins says.

"Without more knowledge about the details and the particulars of what Hydro Quebec is planning, it's difficult to discern what the implications would be for Maine," says David Farmer, Deputy Chief of Staff for Gov. John Baldacci. Farmer says the governor was given advance notice of the utility deal on Tuesday by Quebec Premier Jean Charest and New Brunswick Premier Shawn Graham.

New Brunswick Power already has transmission lines into Maine, and Baldacci has been discussing power transmission proposals that include leasing a right-of-way along the Interstate 95 corridor to connect with the Canadian utility, and move electricity and natural gas. Farmer says now that Hydro Quebec has the ability to ship cheaper power into Maine and New England, it could potentially rewrite a lot of assumptions about the region's energy mix.

"One of the areas we're watching is we want to understand how it impacts the development of renewable energy in our state, which includes wind, onshore and offshore, how it would impact the development of transmission in Maine and the potential impact on consumers, either through the impact on electricity rates or through other benefits that might go to people who live and work here," Farmer says.

Maine's Public Advocate Richard Davies says Hydro Quebec has long been a major player in the utility world, but its acquisition of New Brunswick Power now gives it an additional seven hydroelectric power generating dams, three coal and diesel burning plants and a nuclear power plant that is scheduled to go online near St. John in the next couple of years.

"It certainly does put Hydro Quebec in a very powerful position," Davies says. "And that power could be used for good as well as cause possible problems."

Although Maine power producers might view the Hydro Quebec acquisition of New Brunswick Power with some trepidation, former Maine Gov. Angus King says the Canadian utility could play an important role in the mix of Maine's energy needs while furthering goals established for green power. King is a co-founder of Independence Wind, which plans to construct a 22-turbine wind power project in western Maine.

"It could create a situation where New England's energy needs could be met entirely by renewables, which would be a very powerful idea, and in fact that's what's being done right now in Europe, with northern Europe and the Norway hydro power," King says. "So I think there's some real future -- the overused word is 'synergy' -- but in this case it really fits."

Hydro Quebec already supplies most of Vermont's power needs and serves part of upstate New York. The utility also was in negotiations to build a new 1,200 megawatt transmission line from Quebec to New Hampshire when it anneounced its acquisition of New Brunswick Power yesterday. The acquisition is scheduled to be finalized in March.





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