Quebec, P.E.I. talk power
Published Saturday November 14th, 2009
Electricity: Hydro-Québec starts formal discussion with Prince Edward Island about possible energy deal
BOSTON - The governments of Prince Edward Island and Quebec have launched formal talks on a possible energy deal, Quebec Premier Jean Charest said Friday.
At an energy conference in Boston, Charest said the deal would allow Hydro-Québec to sell cheap and renewable power to P.E.I..
The giant hydro-electric utility is interested in building an underground cable to ship electricity to Quebec's Îles de la Madeleine off the coast of P.E.I. and possibly purchasing the province's privately-owned distribution network, he said.
The announcement comes two weeks after New Brunswick and Quebec signed a tentative multi-billion dollar deal to sell most of NB Power's assets to Hydro-Québec.
Quebec, P.E.I. and New Brunswick are also holding three-party talks that would build a stronger energy market across the region, Charest said
"A regional partnership on energy would benefit the three provinces so it makes sense for us to work together," he said. "It would be a strategic opportunity for us to create an energy hub."
The formal talks between Quebec and P.E.I. follow a September meeting between Charest and P.E.I. Premier Robert Ghiz.
"Right now most of our electricity is oil based so it's expensive and non-renewable. This deal would provide P.E.I. with cheaper and cleaner electricity," Ghiz said during an interview from Charlottetown, where he announced to the legislative assembly the start of formal discussions with Quebec.
Ghiz said negotiating teams have been set-up to hammer out the details of the deal, which would see P.E.I. purchase about 100 megawatts of electricity from Hydro-Québec.
But if Hydro-Québec is interested in purchasing the distribution network it would need to talk with Maritime Electric, a subsidiary of Newfoundland-based Fortis - the private company that owns P.E.I.'s network, he said.
Premier Shawn Graham called the talks between P.E.I. and Quebec "encouraging."
"It just shows that the leadership shown here in New Brunswick is having a cascading effect with P.E.I. now wanting to achieve the same benefits that we've achieve.
And that's lower power rates for all citizens and elimination of debt," he said in Saint John.
While a deal between Quebec's giant hydro-electric utility and New Brunswick would help facilitate talks for P.E.I., Ghiz said the province's negotiations are not hinged on New Brunswick going ahead with a deal.
"But the agreement in place between Quebec and New Brunswick is a good thing," he said. "It's all part of building a strategic energy zone in eastern Canada."
After a speech to the U.S.-Canada Energy Trade and Technology conference, Charest said an energy partnership between Quebec, New Brunswick and Prince Edward Island would open the door for new market opportunities throughout northeastern North America.
"If we are able to enter into agreements it would help us export clean energy to our partners in New England, who would benefit from a clean energy supply that reduces greenhouse gas emissions," he said.
Although there has been heated debate in New Brunswick over the proposed sale of NB Power, Charest called it a "win-win deal."
"I think it's important that this discussion is taking place in New Brunswick right now and I'm not going to try to immerse myself of that debate," Charest said.
"But there needs to be serious discussion on what the alternative is."
Charest said New Brunswick would continue to have control over energy issues on its territory.
"For us that has been clear from the outset," he said.
"New Brunswick will continue to decide on its own energy future and it will be regulated by the provincial regulatory board."
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