Hydro-Québec Signs Agreement with TransCanada Energy


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As a result of its first call for tenders in 2002 to purchase 1,200 MW of power, Hydro-Québec Distribution has signed an agreement with TransCanada Energy Limited. The agreement is for the supply of 507 MW of electricity, beginning in 2006, from a natural-gas cogeneration plant in Bécancour, near Trois-Rivières. The power produced by the plant will be purchased by Hydro-Québec Distribution and the steam will be sold to companies in the Bécancour industrial park.

Hydro-Québec Distribution has already secured agreements with Hydro- Québec Production for baseload deliveries of 350 MW and hourly dispatchable deliveries of 250 MW under the same call for tenders.

The agreements reached in this call for tenders have terms of 20 years and an average electricity price of about 6.1 cents per kWh in 2007, including transmission costs. Hydro-Québec Distribution will submit the agreements to the Régie de l'énergie for approval.

Current Calls for Tenders

In May, Hydro-Québec Distribution issued calls for tenders for 1,000 MW of wind power and 100 MW of biomass power (from plants with at least 75% biomass feedstock).

Information regarding Hydro-Québec Distribution's supply plan and the various calls for tenders is available at http://www.hydroquebec.com/distribution/en/marchequebecois/

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