Biomass generator faces regulatory reviews

Manitoba Hydro capacity constraints challenge clean energy growth as industrial demand, hydrogen projects, EV batteries, and electrification strain the grid; limited surplus, renewables, storage, and transmission bottlenecks hinder new high-load connections.

Key Points

Limited surplus power blocks new energy-intensive loads until added generation and transmission expand Manitoba's grid.

✅ No firm commitments for new energy-intensive industrial customers

✅ Single large load could consume remaining surplus capacity

✅ New renewables need transmission; gas, nuclear face trade-offs

Manitoba Hydro lacks the capacity to provide electricity to any new "energy intensive" industrial customers, the Crown corporation warns in a confidential briefing note that undercuts the idea this province can lure large businesses with an ample supply of clean, green energy, as the need for new power generation looms for the utility.

On July 28, provincial economic development officials unveiled an "energy roadmap" that said Manitoba Hydro must double or triple its generating capacity, as electrical demand could double over the next two decades in order to meet industrial and consumer demand for electricity produced without burning fossil fuels.

Those officials said 18 potential new customers with high energy needs were looking at setting up operations in Manitoba — and warned the province must be careful to choose businesses that provide the greatest economic benefit as well as the lowest environmental impact.

In a briefing note dated Sept. 13, obtained by CBC News, Manitoba Hydro warns it doesn't have enough excess power to hook up any of these new heavy electricity-using customers to the provincial power grid.

There are actually 57 proposals to use large volumes of electricity, Hydro says in the note, including eight projects already in the detailed study phase and nine where the proponents are working on construction agreements.

"Manitoba Hydro is unable to offer firm commitments to prospective customers that may align with Manitoba's energy roadmap and/or provincial economic development objectives," Hydro warns in the note, explaining it is legally obliged to serve all existing customers who need more electricity.

"As such, Manitoba Hydro cannot reserve electric supply for particular projects."

Hydro says in the note its "near-term surplus electricity supply" is so limited amid a Western Canada drought that "a single energy-intensive connection may consume all remaining electrical capacity."

Adding more electrical generating capacity won't be easy, even with new turbine investments underway, and will not happen in time to meet demands from customers looking to set up shop in the province, Hydro warns.

The Crown corporation goes on to say it's grappling with numerous requests from existing and prospective energy-intensive customers, mainly for producing hydrogen, manufacturing electric vehicle batteries and switching from fossil fuels to electricity, such as to use electricity for heat in buildings.

In a statement, Hydro said it wants to ensure Manitobans know the corporation is not running out of power — just the ability to meet the needs of large new customers, and continues to provide clean energy to neighboring provinces today.

"The size of loads looking to come to Manitoba are significantly larger than we typically see, and until additional supply is available, that limits our ability to connect them," Hydro spokesperson Bruce Owen said in a statement.

Adding wind power or battery storage, for example, would require the construction of more transmission lines, and deals such as SaskPower's purchase depend on that interprovincial infrastructure as well.

Natural gas plants are relatively inexpensive to build but do not align with efforts to reduce carbon emissions. Nuclear power plants require at least a decade of lead time to build, and tend to generate local opposition.

Hydro has also ruled out building another hydroelectric dam on the Nelson River, where the Conawapa project was put on hold in 2014.

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Hydro Quebec Power Consumption Record surges amid extreme cold, peak demand, and grid stress, as Hydro-Quebec urges energy conservation, load management, and reduced heating during morning and evening peaks across Montreal and southern Quebec.

Key Points

Quebec's grid hit 40,300 MW during an extreme cold snap, setting a new record and prompting conservation appeals.

✅ Lower thermostats 1-2 C in unused rooms during peak hours

✅ Delay dishwashers, dryers, and hot water use to off-peak

✅ Peak windows: 6-9 a.m. and 4-8 p.m.; import power if needed

Hydro Quebec says it has once again set a new record for power consumption, echoing record-breaking demand in B.C. in 2021 as extreme cold grips much of the province.

An extreme cold warning has been in effect across southern Quebec since Friday morning, straining the system, just as Calgary's electricity use soared during a frigid February, as Quebecers juggle staying warm and working from home.

Hydro Québec recorded consumption levels reaching 40,300 megawatts as of 8 a.m. Friday, breaking a previous record of 39,000 MW (with B.C. electricity demand hit an all-time high during a similar cold snap) that was broken during another cold snap on Jan 11. 

The publicly owned utility is now asking Quebecers to reduce their electricity consumption as much as possible today and tomorrow, a move consistent with clean electricity goals under federal climate pledges, predicting earlier in the morning the province would again reach an all-time high.

Reducing heating by just one or two degrees, especially in rooms that aren't being used, is one step that people can take to limit their consumption. They can also avoid using large appliances like the dishwasher and clothing dryer as often, and shortening the use of hot water. 

"They're small actions, but across millions of clients, it makes a difference," said Cendrix Bouchard, a spokesperson with Hydro Québec, while speaking with Tout un matin.

"We understand that asking this may pose challenges for some who are home throughout the day because they are working remotely, but if people are able to contribute, we appreciate it."

The best time to try and limit electricity usage is in the morning and evening, when electricity usage tends to peak, Bouchard said.

The province can import electricity from other regions if Quebec's system reaches its limits, even as the utility pursues selling to the United States as part of its long-term strategy, he added.

Temperatures dropped to –24 C in Montreal at 7 a.m., with a wind chill of –29 C. 

It will get colder across the south of the province through the evening and wind chills are expected to make it feel as cold as – 40 until Saturday morning, Environment Canada warned.

Those spending time outdoors are at a higher risk of frostbite and hypothermia.

"Frostbite can develop within minutes on exposed skin, especially with wind chill," Environment Canada said.

Conserving energy
Hydro-Québec has signed up 160,000 clients to a flexible billing plan similar to BC Hydro's winter payment plan that allows them to pay less for energy — as long as they use it during non-peak periods.

Quebec's energy regulator, the Régie de l'énergie, also forces crypto-currency mining operations to shut down for some hours  on peak-demand days, a topic where BC Hydro's approach to crypto mining has also drawn attention, Bouchard said.

Hydro-Québec says the highest consumption periods are usually between 6 a.m.-9 a.m. and 4 p.m.-8 p.m.

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Extreme Heat and Rising Electricity Bills amplify energy costs as climate change drives air conditioning demand, stressing the power grid and energy affordability, with low income households facing outsized burdens during prolonged heat waves.

Key Points

Heat waves from climate change raise AC demand, driving up electricity costs and straining energy affordability.

✅ More AC use spikes electricity demand during heat waves

✅ Low income households face higher energy burden

✅ Grid reliability risks rise with peak cooling loads

Extreme heat waves are not only straining public health systems but also having a significant impact on household finances, particularly through rising electricity bills. According to a recent AP-NORC poll, a growing number of Americans are feeling the financial pinch as soaring temperatures drive up the cost of cooling their homes. This development underscores the broader implications of climate change and its effects on everyday life.

The AP-NORC poll highlights that a majority of Americans are experiencing increased electricity costs as a direct result of extreme heat. As temperatures climb, so does the demand for air conditioning and other cooling systems. This increased energy consumption is contributing to higher utility bills, which can put additional strain on household budgets.

Extreme heat waves have become more frequent and intense due to climate change, which has led to a greater reliance on air conditioning to maintain comfortable indoor environments. Air conditioners and fans work harder during heat waves, and wasteful air conditioning can add around $200 to summer bills, consuming more electricity and consequently driving up energy bills. For many households, particularly those with lower incomes, these increased costs can be a significant burden.

The poll reveals that the impact of rising electricity bills is widespread, affecting a diverse range of Americans. Households across different income levels and geographic regions are feeling the heat, though the extent of the financial strain can vary. Lower-income households are particularly vulnerable, as they often have less flexibility in their budgets to absorb higher utility costs. For these families, the choice between cooling their homes and other essential expenses can be a difficult one.

In addition to financial strain, the poll highlights concerns about energy affordability and access. As electricity bills rise, some Americans may face challenges in paying their bills, leading to potential utility shut-offs or the need to make difficult choices between cooling and other necessities. This situation is exacerbated by the fact that many utility companies do not offer sufficient assistance or relief programs to help low-income households manage their energy costs.

The increasing frequency of extreme heat events and the resulting spike in electricity consumption also have broader implications for the energy infrastructure. Higher demand for electricity can strain power grids, as seen when California narrowly avoided blackouts during extreme heat, potentially leading to outages or reduced reliability. Utilities and energy providers may need to invest in infrastructure upgrades and maintenance to ensure that the grid can handle the increased load during heat waves.

Climate change is a key driver of the rising temperatures that contribute to higher electricity bills. As global temperatures continue to rise, extreme heat events are expected to become more common and severe, and experts warn the US electric grid was not designed to withstand these impacts. This trend underscores the need for comprehensive strategies to address both the causes and consequences of climate change. Efforts to reduce greenhouse gas emissions, improve energy efficiency, and invest in renewable energy sources are critical components of a broader climate action plan.

Energy efficiency measures can play a significant role in mitigating the impact of extreme heat on electricity bills. Upgrading to more efficient cooling systems, improving home insulation, and adopting smart thermostats can help reduce energy consumption and lower utility costs. Additionally, utility companies and government programs can offer incentives and rebates, including ways to tap new funding that help encourage energy-saving practices and support households in managing their energy use.

The poll also suggests that there is a growing awareness among Americans about the connection between climate change and rising energy costs. Many people are becoming more informed about the ways in which extreme weather events and rising temperatures impact their daily lives. This increased awareness can drive demand for policy changes and support for initiatives aimed at addressing climate change and improving energy efficiency, with many willing to contribute income to climate efforts, about the connection between climate change and rising energy costs.

In response to the rising costs and the impact of extreme heat, there are calls for policy interventions and support programs to help manage energy affordability. Proposals include expanding assistance programs for low-income households, investing in infrastructure improvements, and promoting energy efficiency initiatives alongside steps to make electricity systems more resilient to climate risks. By addressing these issues, policymakers can help alleviate the financial burden on households and support a more resilient and sustainable energy system.

Debates over policy impacts on electricity prices continue; in Alberta, federal policies are blamed by some for higher rates, illustrating how regulation can affect affordability.

In conclusion, the AP-NORC poll highlights the growing financial impact of extreme heat on American households, with rising electricity bills being a significant concern for many. The increased demand for cooling during heat waves is straining household budgets and raising broader questions about energy affordability and infrastructure resilience. Addressing these challenges requires a multifaceted approach, including efforts to combat climate change, improve energy efficiency, and provide support for those most affected by rising energy costs. As extreme heat events become more common, finding solutions to manage their impact will be crucial for both individual households and the broader energy system.

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Champlain Hudson Power Express connects Hydro-Québec hydropower to the New York grid via a 1.25 GW high voltage transmission line, enabling renewable energy imports, grid decarbonization, storage synergy, and reduced fossil fuel generation.

Key Points

A 1.25 GW cross-border transmission project delivering Hydro-Québec hydropower to New York City to displace fossil power.

✅ 1.25 GW buried HV line from Quebec to Astoria, Queens

✅ Supports renewable imports and grid decarbonization in NYC

✅ Enables two-way trade and reservoir storage synergy

Last week, Quebec Premier François Legault took to Twitter to celebrate after New York State authorities tentatively approved the first new transmission line in three decades, the Champlain Hudson Power Express, that would connect Quebec’s vast hydroelectric network to the northeastern U.S. grid.

“C’est une immense nouvelle pour l’environnement. De l’énergie fossile sera remplacée par de l’énergie renouvelable,” he tweeted, or translated to English: “This is huge news for the environment. Fossil fuels will be replaced by renewable energy.”

The proposed construction of a 1.25 gigawatt transmission line from southern Quebec to Astoria, Queens, known as the Champlain Hudson Power Express, ties into a longer term strategy by Hydro Québec: in the coming decade, as cities such as New York and Boston look to transition away from fossil fuel-generated electricity and decarbonize their grids, Hydro-Québec sees opportunities to supply them with energy from its vast network of 61 hydroelectric generating stations and other renewable power, as Quebec has closed the door on nuclear power in recent years.

Already, the provincial utility is one of North America’s largest energy producers, generating $2.3 billion in net income in 2020, and planning to increase hydropower capacity over the near term. Hydro-Quebec has said it intends to increase exports and had set a goal of reaching $5.2 billion in net income by 2030, though its forecasts are currently under review.

But just as oil and gas companies have encountered opposition to nearly every new pipeline, Hydro-Québec is finding resistance as it seeks to expand its pathways into major export markets, which are all in the U.S. northeast. Indeed, some fossil fuel companies that would be displaced by Hydro-Québec are fighting to block the construction of its new transmission lines.

“Linear projects — be it a transmission line or a pipeline or highway or whatever — there’s always a certain amount of public opposition,” Gary Sutherland, director of strategic affairs and stakeholder relations for Hydro-Québec, told the Financial Post, “which is a good thing because it makes the project developer ask the right questions.”

While Sutherland said he isn’t expecting opposition to the line into New York, he acknowledged Hydro-Québec also didn’t fully anticipate the opposition encountered with the New England Clean Energy Connect, a 1.2 gigawatt transmission line that would cost an estimated US$950 million and run from Quebec through Maine, eventually connecting to Massachusetts’ grid.

In Maine, natural gas and nuclear energy companies, which stand to lose market share, and also environmentalists, who oppose logging through sensitive habitat, both oppose the project.

In August, Maine’s highest court invalidated a lease for the land where the lines were slated to be built, throwing permits into question. Meanwhile, Calpine Corporation and Vistra Energy Corp., both Texas-based companies that operate natural gas plants in Maine, formed a political action committee called Mainers for Local Power. It has raised nearly US$8 million to fight the transmission line, according to filings with the Maine Ethics Commission.

Neither Calpine nor Vistra could be reached for comment by the time of publication.

“It’s been 30 years since we built a transmission line into the U.S. northeast,” said Sutherland. “In that time we have increased our exports significantly … but we haven’t been able to build out the corresponding transmission to get that energy from point A to point B.”

Indeed, since 2003, Hydro-Québec’s exports outside the province have grown from roughly two terrawatts per year to more than 30 terrawatts, including recent deals with NB Power to move more electricity into New Brunswick. The provincial utility produces around 210 terrawatts annually, but uses less than 178 terrawatts in Quebec.

Linear projects — be it a transmission line or a pipeline or highway or whatever — there’s always a certain amount of public opposition

In Massachusetts, it has signed contracts to supply 9.4 terrawatts annually — an amount roughly equivalent to 8 per cent of the New England region’s total consumption. Meanwhile, in New York, Hydro-Québec is in the final stages of negotiating a 25-year contract to sell 10.4 terawatts — about 20 per cent of New York City’s annual consumption.

In his tweets, Legault described the New York contract as being worth more than $20 billion over 25 years, although Hydro Québec declined to comment on the value because the contract is still under negotiation and needs approval by New York’s Public Services Commission — expected by mid-December.

Both regions are planning to build out solar and wind power to meet their growing clean energy needs and reach ambitious 2030 decarbonization targets. New York has legislated a goal of 70 per cent renewable power by that time, while Massachusetts has called for a 50 per cent reduction in emissions in the same period.

Hydro-Quebec signage is displayed on a manhole cover in Montreal. PHOTO BY BRENT LEWIN/BLOOMBERG FILES
According to a 2020 paper titled “Two Way Trade in Green Electrons,” written by three researchers at the Center for Energy and Environmental Policy Research at the Massachusetts’ Institute for Technology, Quebec’s hydropower, which like fossil fuels can be dispatched, will help cheaply and efficiently decarbonize these grids.

“Today transmission capacity is used to deliver energy south, from Quebec to the northeast,” the researchers wrote, adding, “…in a future low-carbon grid, it is economically optimal to use the transmission to send energy in both directions.”

That is, once new transmission lines and wind and solar power are built, New York and Massachusetts could send excess energy into Quebec where it could be stored in hydroelectric reservoirs until needed.

“This is the future of this northeast region, as New York state and New England are decarbonizing,” said Sutherland. “The only renewable energies they can put on the grid are intermittent, so they’re going to need this backup and right to the north of them, they’ve got Hydro-Québec as backup.”

Hydro-Québec already sells roughly 7 terrawatts of electricity per year into New York on the spot market, but Sutherland says it is constrained by transmission constraints that limit additional deliveries.

And because transmission lines can cost billions of dollars to build, he said Hydro-Québec needs the security of long-term contracts that ensure it will be paid back over time, aligning with its broader $185-billion transition strategy to reduce reliance on fossil fuels.

Sutherland expressed confidence that the Champlain Hudson Power Express project would be constructed by 2025. He noted its partners, Blackstone-backed Transmission Developers, have been working on the project for more than a decade, and have already won support from labour unions, some environmental groups and industry.

The project calls for a barge to move through Lake Champlain and the Hudson River, and dig a trench while unspooling and burying two high voltage cables, each about 10-12 centimetres in diameter. In certain sections of the Hudson River, known to have high concentrations of PCP pollutants, the cable would be buried underground alongside the river.

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Wylfa Nuclear Project Cancellation reflects Hitachi's withdrawal, pulling £16bn from North Wales, risking jobs, reshaping UK nuclear power plans as renewables grow and Chinese involvement rises amid shifting energy market policies.

Key Points

An indefinite halt to Hitachi's Wylfa Newydd nuclear plant, removing about £16bn investment and jobs from North Wales.

✅ Hitachi withdraws funding amid changing energy market costs

✅ Puts 400 local roles and up to 10,000 construction jobs at risk

✅ UK shifts toward renewables as nuclear project support stalls

Chris Ruane said Japanese firm Hitachi’s announcement this morning about the Wylfa project would take £16 billion of investment out of the region.

He said it was the latest in a list of energy projects which had been scrapped as he responded to a statement from business secretary Greg Clark.

Mr Ruane, the Labour member for the Vale of Clywd, said: “In his statement he said the Government are relying now more on renewables, can I put the North Wales picture to him; 1,500 wind turbines were planned off the coast of North Wales. They were removed, those plans were cancelled by the private sector.

“The tidal lagoons for Wales were key to the development of the Welsh economy – the Government itself pulled the support for the Swansea Bay tidal lagoon. That had a knock-on effect for the huge lagoon planned off the coast of North Wales.

“And now today we hear of the cancellation of a £16 billion investment in the North Wales economy. This will devastate the North Wales economy. The people of North Wales need to know that the Prime Minister is batting for them and batting for the UK.”

Mr Clark blamed the changing landscape of the energy market for today’s announcement, and said Wales has been a “substantial and proud leader” in renewable energy during the UK’s green industrial revolution over recent years.

But another Labour MP from North Wales, Albert Owen, of Ynys Mon, said the Wylfa plant’s cancellation in his constituency is putting 400 jobs at risk, as well as the “potential of 8-10,000 construction jobs”, as well as hundreds of operational jobs and 33 apprenticeships.

He asked Mr Clark: “Can I say straightly can we work together to keep this project alive, to ensure that we create the momentum so it can be ready for a future developer or this developer with the right mechanism?”

The minister replied that he and his officials would “work together in a completely open-book way on the options” to try and salvage the project.

But in the Lords, Labour former security minister Lord West of Spithead said the UK’s nuclear industry was in crisis, noting that Europe is losing nuclear power as well.

“In the 1950s our nation led the world in nuclear power generation and decisions by successive governments, of all hues, have got us in the position today where we cannot even construct a large civil nuclear reaction,” he told peers at question time.

Lord West asked: “Are we content that now the only player seems to be Chinese and that by 2035… we are happy for the Chinese to control one third of the energy supply of our nation?”

Business, Energy and Industrial Strategy minister Lord Henley said the Government had hoped for a better announcement from Hitachi but that was not the case.

He said costs in the nuclear sector were rising, amid setbacks at Hinkley Point C, while costs for many renewables were coming down and this was one of the reasons for the problem.

Tory former energy secretary Lord Howell of Guildford said the Chinese were in “pole position” for the rebuilding and replacement “of our nuclear fleet” and this would have a major impact on UK energy policy and plans to meet net zero targets in the 2030s.

Plaid Cymru’s Lord Wigley warned that putting the Wylfa Newydd on indefinite hold would cause economic planning blight in north-west Wales and urged the Government to raise the level of support allocated to the region.

Lord Henley acknowledged the announcement was not welcome but added: “We remain committed to nuclear power. We will look to see what we can do. We still have a great deal of expertise in this country and we can work on that.”

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Canadian Electricity Innovation drives a customer-centric, data-driven grid, integrating renewable energy, EVs, storage, and responsive loads to boost reliability, resilience, affordability, and sustainability while aligning regulators, utilities, and policy for decarbonization.

Key Points

A plan to modernize the grid, aligning utilities, regulators, and tech to deliver clean, reliable, affordable power.

✅ Smart grid supports EVs, storage, solar, and responsive loads.

✅ Innovation funding and regulatory alignment cut long-term costs.

✅ Resilience rises against extreme weather and outage risks.

For more than 100 years, Canadian electricity companies had a very simple mandate: provide reliable, safe power to all. Keep the lights on, as some would say. And they did just that.

Today, however, they are expected to also provide a broad range of energy services through a data-driven, customer-centric system operations platform that can manage, among other things, responsive loads, electric vehicles, storage devices and solar generation. All the while meeting environmental and social sustainability — and delivering on affordability.

Not an easy task, especially amid a looming electrical supply crunch that complicates planning.

That’s why this new mandate requires an ironclad commitment to innovation excellence. Not simply replacing “like with like,” or to make incremental progress, but to fundamentally reimagine our electricity system and how Canadians relate to it.

Our innovators in the electricity sector are stepping up to the plate and coming up with ingenious ideas, thanks to an annual investment of some $20 billion.

#google#

But they are presented with a dilemma.

Although Canada enjoys among the cleanest, most reliable electricity in the world, we have seen a sharp spike in its politicization. Electricity rates have become the rage and a top-of-mind issue for many Canadians, as highlighted by the Ontario hydro debate over rate plans. Ontario’s election reflects that passion.

This heightened attention places greater pressure on provincial governments, who regulate prices, and in jurisdictions like the Alberta electricity market questions about competition further influence those decisions. In turn, they delegate down to the actual regulators where, at their public hearings, the overwhelming and almost exclusive objective becomes: Keeping costs down.

Consequently, innovation pilot applications by Canadian electricity companies are routinely rejected by regulators, all in the name of cost constraints.

Clearly, electricity companies must be frugal and keep rates as low as possible.

No one likes paying more for their electricity. Homeowners don’t like it and neither do businesses.

Ironically, our rates are actually among the lowest in the world. But the mission of our political leaders should not be a race to the basement suite of prices. Nor should cheap gimmicks masquerade as serious policy solutions. Not if we are to be responsible to future generations.

We must therefore avoid, at all costs, building on the cheap.

Without constant innovation, reliability will suffer, especially as we battle more extreme weather events. In addition, we will not meet the future climate and clean energy targets such as the Clean Electricity Regulations for 2050 that all governments have set and continuously talk about. It is therefore incumbent upon our governments to spur a dynamic culture of innovation. And they must sync this with their regulators.

This year’s federal budget failed to build on the 2017 investments. One-time public-sector funding mechanisms are not enough. Investments must be sustained for the long haul.

To help promote and celebrate what happens when innovation is empowered by utilities, the Canadian Electricity Association has launched Canada’s first Centre of Excellence on electricity. The centre showcases cutting-edge development in how electricity is produced, delivered and consumed. Moreover, it highlights the economic, social and environmental benefits for Canadians.

One of the innovations celebrated by the centre was developed by Nova Scotia’s own NS Power. The company has been recognized for its groundbreaking Intelligent Feeder Project that generates power through a combination of a wind farm, a substation, and nearly a dozen Tesla batteries, reflecting broader clean grid and battery trends across Canada.

Political leaders must, of course, respond to the emotions and needs of their electors. But they must also lead.

That’s why ongoing long-term investments must be embedded in the policies of federal, provincial and territorial governments, and their respective regulatory systems. And Canada’s private sector cannot just point the finger to governments. They, too, must deliver, by incorporating meaningful innovation strategies into their corporate cultures and vision.

That’s the straightforward innovation challenge, as it is for the debate over rates.

But it also represents a generational opportunity, because if we get innovation right we will build that better, greener future that Canadians aspire to.

Sergio Marchi is president and CEO of the Canadian Electricity Association. He is a former Member of Parliament, cabinet minister, and Canadian Ambassador to the World Trade Organization and United Nations in Geneva.

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