globeandmail.com: Quebec signs historic power deal

[dracodraconis]

globeandmail.com: Quebec signs historic power deal

Newfoundland and Labrador have signed a five-year deal with Québec in which NL leases Québec's lines for $20-million/year to transport approximately 130 kilowatts megawatts from Upper Churchill to a brokerage firm in the US. Previously, NL had to sell power to Québec who then resold the power to the US for a substantial profit.

Comments

[bluetourmaline.livejournal.com]

I have a sneaky feeling that the reporter mis-said it and meant 130 megawatts. Kilowatts are pocket change --- on one of those transmission lines, heading to the US, count on more than that in line loss! And $20 million a year works out to about $17.56/MWh, which is about right for a transmission right of that magnitude (which part of the US? Depending on the systems operator, and the zone, and the month, the prices are from $40 to $75/MWh.)

[dracodraconis.livejournal.com]

Makes much more sense, now that you've pointed it out. For example, the proposed hydro station in northern Quebec is expected to generate 1,550 megawatts, so the reporter (and I for retyping it without it comment) made a mistake in the report.

[dracodraconis.livejournal.com]

Just looking at the original deal, NL was receiving 0.25 cents per kilowatt-hour for the last 15 years with automatic renewal on 1 April 2009 to receive 0.2 cents per kilowatt-hour for the next 25 years. Looks like they opted not to exercise the automatic renewal.