Long-term exports and use of interconnections: Development plan 1993

The orientations, objectives, and strategies proposed for long-term exports of electricity from Quebec are presented, as well as the use of interconnections between Hydro-Quebec and northeastern US utilities. A recent historical overview shows that after a period of exporting large amounts of surplus energy in the late 1980s, most export sales are of firm power and energy. Export commitments signed for 1993-2000 amount to total exports of 11-14 TWh per year with revenues generated to be at least $4 billion. Hydro-Quebec originally had an export strategy with a target of 3,500 MW of firm power and energy exports by the year 2000. An economic recession, lower demand for power in the USA, new planning policies at US utilities emphasizing maximum flexibility, and competition from other electricity providers have revised this estimate downward. Over the short and medium term, neighboring US utilities will experience surpluses in both capacity and energy, and additional requirements indicated by their demand forecasts only appear after the year 2000. The situation is similar for neighboring Canadian utilities. In the long term, Hydro-Quebec's objective is to meet 15-20% of new requirements on neighboring US systems. New agreements could represent 1,500 MW by the year 2004, or ca 8.5 TWh/y. Hydro-Quebec also wants to be recognized as an active partner in the market for short-term transactions and to maximize use of its generation and interconnection facilities. The utility will examine transactions such as guaranteeing reserve capacity, energy banking, wheeling service, and pooling of generating capacities in order to offer the products best suited to customer needs. 3 figs., 3 tabs