Manitoba Hydro will supply the Northern States Power (NSP) Company - Minnesota, an Xcel Energy company, with 375 megawatts of power in 2015, with the potential to increase to 500 megawatts after 2021.
The two companies have signed a 'term sheet' for the sale, which will now enter the approval process and formal contract negotiations. Once completed, this will be the third large power sale Manitoba Hydro has arranged with Xcel. The previous sale of 500 megawatts of power for the period 2005 to 2015 is worth $1.7 billion. This contract, an extension of the previous contract, is actually a reduction in the amount of power being purchased. The contract will span 10 years, with an estimated value of $2.2 billion.
Xcel's deal with Manitoba Hydro was announced in conjunction with plans for wind power. Xcel has asked Minnesota regulators for approval to buy 375 megawatts of electricity from Manitoba Hydro starting in 2015, and to buy or build 380 megawatts of wind power, starting that same year, if not earlier. Xcel would use wind as the primary energy source, with Manitoba Hydro as the backup for when the wind doesn't blow.
Sources have indicated that no new dams will be required to supply power to Xcel.
View the November 3, 2006 Manitoba Government press release
View the November 3, 2006 Star Tribune news article
Sources: Government of Manitoba, Star Tribune
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