Published 8.12.2010
Johnson, VT – In an agreement signed today between Vermont utilities and Hydro Quebec (HQ), Vermont Electric Cooperative, Inc. has secured the purchase of up to 17 megawatts of the total 225 megawatts of power contracted for Vermont.

 “Our Co-op members have given VEC a clear message that we need to ensure that we can secure stable, long-term contracts that will provide clean, renewable power at a competitive price,” said Dave Hallquist, CEO. “Reaching this agreement with Hydro Quebec will provide power with renewable attributes at prices close to non-renewable power through 2038.” 

Currently, VEC is purchasing 31 megawatt hours of power from Hydro Quebec, of which 25 megawatt hours expire at the end October, 2012. The new agreement begins in November of 2012, allowing VEC to seamlessly replace two-thirds of the expired portion of its existing contract. This is less power than VEC (and the state) currently receives from the expiring contract, which could mean that utilities will be seeking replacement power from the New England market. The Vermont utilities will continue to seek additional commitments from HQ. 

In addition to their 17 megawatts, VEC has also negotiated an agreement with its sister cooperative -- Washington Electric Co-op -- to purchase all or part of their share of the HQ contract during periods of the contract term when WEC is not expecting to need the power, beginning in 2016. “We are very pleased with the opportunity to purchase a few additional megawatts from WEC,” said Hallquist. “We anticipate that this additional amount from WEC will be available to VEC for a significant amount of time. The agreement between VEC and WEC is a win – win for both utilities,” added Hallquist. 

Vermont Electric Cooperative’s Board of Directors at their June Board meeting gave approval for VEC to enter into this long term agreement with Hydro Quebec. The Vermont utilities expect to file on Monday, August 16, 2010 to seek approval from the Vermont Public Service Board. If and when the Public Service Board approves the contract, VEC will then put the contract before its membership for vote, seeking member approval for VEC to proceed with the contracts with Hydro Quebec and Washington Electric Co-op.