Power sale arrangements
On October 29, 2018 we announced the signing of a term sheet to provide up to 215 megawatts (MW) of renewable hydroelectricity to Saskatchewan beginning in 2022. The new sale will last a minimum of 18 years with a potential extension up to a total of 30 years, bringing long-term benefits to electricity customers in both provinces. This is the largest of three recent major power deals between the two provinces. By 2022, Manitoba Hydro will be supplying up to 315 MW of hydroelectricity to Saskatchewan.
Previously, on January 29, 2016 we signed a 20-year agreement to sell 100 MW of renewable hydroelectricity to SaskPower, starting in 2020. In 2015, SaskPower began purchasing 25 MW of electricity capacity from Manitoba Hydro. This sale ends in May 2022.
Wisconsin Public Service
In 2011, we announced an agreement with Wisconsin Public Service for the sale of 100 MW of electricity over the period from 2021–2027. On February 28, 2014, we signed an agreement for 108 MW of firm power from 2016–2021.
On May 25, 2011, we announced an agreement with Minnesota Power for the sale of 250 MW of electricity over a 15-year period, beginning in 2020.
The sale, along with 2011 sale 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 an additional international transmission line, the Manitoba–Minnesota Transmission Project (MMTP) in Canada and the Great Northern Transmission Line (GNTL) in Minnesota. The MMTP is currently in the licensing phase while the GNTL is already under construction.
We have enhanced and extended by 10 years a significant power purchase agreement with Xcel Energy.
Under the agreement, Northern States Power (part of Xcel Energy) will purchase between 375 MW and 500 MW of power from Manitoba Hydro. The increase of 125 MW occurs in 2021 and is tied to the construction of Keeyask. The 2 corporations have had a continuous 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-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 allow utilities whose peak loads occur in different seasons of the year to share surplus generating capacity during off peak seasons. This saves both utilities from building generating facilities that are only required at peak times, saving money for their customers.
The Great River Energy diversity exchange means we will provide 200 MW of renewable hydroelectric capacity to Great River Energy in the summer to meet their annual peak energy needs, while Great River Energy will provide Manitoba Hydro with 200 MW of capacity during the winter when heating demands in Manitoba are the greatest.