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Utility says it has sufficient electrical energy to provide New England
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Hydro-Québec, the provincially owned energy utility and a significant supplier of electrical energy in New England, mentioned web revenue elevated about 5 per cent 12 months over 12 months within the first quarter as export demand outweighed weaker gross sales at residence.
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Within the earlier fiscal 12 months, the utility reported report revenue of $4.6 billion, up from $3.6 billion in 2021, due partly to elevated demand for inexperienced energy stemming from the vitality transition.
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This 12 months isn’t shaping as much as be as as promising. Hotter winter climate resulted in decreased gross sales in Quebec, whereas the acquisition of Nice River Hydro LLC’s community of New England hydro stations resulted in a $19-million improve in operations bills final quarter.
Hydro-Québec nonetheless managed to put up report revenue of $2.2 billion, in contrast with $2.1 billion within the year-ago quarter, however chief monetary officer Jean-Hugues Lafleur hinted the utility most likely can’t keep that tempo.
“Our wonderful first-quarter monetary efficiency is basically as a result of skilful deployment of our commercialization and danger administration methods associated to our export actions,” mentioned Lafleur in a press launch on Could 12.
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Costs within the electrical energy market fell as a result of hotter temperatures within the first three months of 2023, however the utility was capable of mitigate the affect by hedging. “Our danger administration technique helped offset this setback, thereby contributing to record-breaking quarterly web revenue,” Lafleur mentioned.
These days, Hydro-Québec has been beneath fireplace from Maine legislators who’re involved the utility gained’t be capable to present the state with the ability it wants. Hydro-Québec has been promoting electrical energy to New England for the reason that Nineteen Eighties. Immediately, half of the corporate’s exports go to the area.
The Maine legislators this week known as on Massachusetts Governor Maura Healey to overview the state’s selection of Hydro-Québec because the provider for a regional clear energy contract — and be part of with Mainers in rejecting it. “Such a overview is critical as a result of Hydro-Québec (HQ) will quickly be getting into an prolonged interval of projected electrical energy constraints,” the legislators wrote in a letter dated Could 10.
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Shoppers want 21,000 megawatts of energy for his or her operations, however Hydro-Québec has simply 1,000 megawatts to supply, Radio-Canada reported lately. Which means that sure initiatives might be delayed, mentioned Quebec Innovation Minister Pierre Fitzgibbon on Could 4.
The Maine legislators additionally wrote to Quebec Premier François Legault to “specific (their) sturdy considerations about latest adjustments in vitality provide and demand in Quebec,” and alleged that the premier has been secretive concerning the plans for “4 or 5” new hydropower dams.
“Many individuals in New England have lived with a fantasy that Quebec has a lot energy that it doesn’t know what to do with all of it,” they wrote. “The truth is far more difficult, and we imagine Quebec has a accountability to totally reveal that complexity to the general public, together with to those that dwell in export markets for HQ energy.”
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Hydro-Québec has sufficient energy to meet its obligations, Lafleur mentioned on a Could 12 analyst name. “Once we signed the contract in 2018, we had sufficient vitality and we nonetheless have sufficient vitality to provide the New England area,” he mentioned, including that the corporate is constructing capability to maintain tempo with demand from america.
Lafleur conceded that the utility isn’t anticipating to carry its present record-setting tempo.
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“It’s unlikely that we’ll carry out as properly over the remaining fiscal 12 months, as decrease market costs are anticipated to have a larger affect within the coming months,” mentioned Lafleur within the press launch, predicting web revenue will drop to $4 billion this 12 months.
• Electronic mail: mcoulton@postmedia.com | Twitter: marisacoulton
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