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Hydro-Quebec Buying More Access to U.S. Markets, But Not Without a Fight By SGN Staff Nov 2, 2009 - 3:01:24 PM
Utility behemoth Hydro-Quebec will pay $4.4 billion (U.S.) for most of the assets of New Brunswick Power, including transmission lines. The deal, while a win for Hydro-Quebec, has been vehemently criticized by others, including the premier of Newfoundland and Labrador and a northeastern U.S. utility association.
Hydro-Quebec, the continent's largest utility, plans to spend as much as $23 billion (U.S.) to increase its hydro electricity generation by 4,500MW every year for the next 10 years. A lot of that power will be sent to the U.S. and Ontario because economic growth projections for Quebec indicate the province won't need all of it. Hydro-Quebec said the expansion will allow the company to double its electricity exports to the U.S. within two years.
Quebec Premier Jean Charest lauded the agreement as a boon for the utility's advance into eastern Canadian and New England energy markets, and a Canadian energy expert has said Hydro-Quebec's less expensive and cleaner energy gives it a competitive edge over many American utilities.
But Angie O'Connor, president of the New England Power Generators Association, had an entirely different perspective. She was quoted in Vermont's Rutland Herald newspaper as saying the Hydro-Quebec move gives the utility giant a monopolistic and unfair advantage that will squash realistic competition. "It's a monopoly in the purest sense and I don't think that's supportive of competition," she said.
And the deal hasn't been greeted with unanimous applause north of the border, either.
Danny Williams, premier of the province of Newfoundland and Labrador, agreed—in much stronger language—that Hydro-Quebec was moving aggressively toward a monopoly.
He said that if it appears the agreement isn't in the best interests of Canadians, a claim would be filed with Canada's Competition Bureau, an independent law enforcement agency charged with protecting and promoting competitive markets. But he seems to have already made up his mind and has referred to Hydro-Quebec's plans as "despicable."
Far from soft-spoken, Williams was quoted in the St. John's Telegram as saying the deal would go through "over my dead body."
WSJ online article
Rutland Herald article
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