Power sale arrangements
On January 29, 2016 we signed a 20-year agreement to sell 100 megawatts (MW) of renewable hydroelectricity to SaskPower, starting in 2020. The sale will require 18% of the energy from the under-construction Keeyask Generating Station on the Nelson River. The signing of the definitive agreement follows up on a term sheet that was signed in June of 2015. For more details, read the news release on the Government of Manitoba website.
Previously we entered into another short-term firm sales agreement with SaskPower for 25-MW of electricity that commenced in November 2015 and runs to May 2022.
Wisconsin Public Service
On February 28, 2014, we signed 2 major deals with Wisconsin Public Service:
- 108 megawatts (MW) of firm power from 2016–2021;
- 308 MW of firm power for up to 10 years, starting in 2027.
These sales will use some of the electrical capacity from the Keeyask Generating Station. The 308-MW sale will also require the new 500,000-volt Manitoba–Minnesota transmission line (MMTP), currently in the licencing phase.
In 2011, we announced an agreement with Wisconsin Public Service for the sale of 100 MW of electricity over the period from 2021–2026.
On May 25, 2011, we announced an agreement with Minnesota Power for the sale of 250 megawatts (MW) of electricity over a 15-year period, beginning in 2020.
The sale, along with one to Wisconsin Public Service, required the construction of new hydroelectric generating capacity in Manitoba, triggering the development of the 695-MW Keeyask Generating Station.
The deal also required the development of additional transmission capacity that resulted in the proposed MMTP, currently in the licencing phase.
We have enhanced and extended by 10 years a significant power purchase agreement with Exel Energy.
Under the agreement, Northern States Power (part of Xcel Energy) will purchase between 375 and 500 megawatts (MW) of power from Manitoba Hydro. The 2 corporations have had a series of power sales agreements over the years, dating back to the early 1970s.
The renewed power sale started in 2015 and will extend through 2025.
Great River Energy
On October 24, 2013, we signed a 200-megawatt (MW) seasonal diversity exchange with Great River Energy of Minnesota that runs until 2030.
The new agreement extends a 150-MW arrangement that has been in place between the two utilities since 1995.
Seasonal diversity exchanges take advantage of the fact that Manitoba Hydro’s load peaks during winter, due to heating demand. Most U.S. utilities experience their peak loads in the summer, due to higher air conditioning use.
The diversity exchange means Manitoba Hydro will provide 200 MW of renewable hydroelectric capacity to Great River Energy in the summer to meet their energy needs, while Great River Energy will provide Hydro with 200 MW of capacity during the winter.