HQUS markets electricity from Hydro-Quebec’s generating fleet, whose output is 98% hydroelectric. The agreement includes a price-smoothing mechanism to shield customers from volatile market prices.
The price will start at approximately six cents per kWh. The final price for deliveries starting in 2012 will be set in December 2010. In addition, HQUS and the Vermont utilities will share any future revenues related to environmental attributes.
The agreement will now go to the Vermont Public Service Board for review. Other Vermont utilities have identified the amounts of power that they intend to buy under this agreement, which was negotiated by Central Vermont Public Service and Green Mountain Power on their behalf. They will also participate in the review process before the Vermont Public Service Board.
