Hydro Quebec has signed a $2 billion contract to export electricity to Vermont, the first state to recognize hydroelectric power as renewable.
Under the contract, Quebec's electrical utility will supply the Green Mountain state with one-third of its energy needs until 2038.
But Premier Jean Charest was very proud of the deal because of its groundbreaking nature.
"In this agreement what is significant to us, is that the state of Vermont is the first state in North America not to discriminate against large-scale hydro," said Charest.
Vermont's legislature recently recognized electricity produced by large hydro dams as a 'renewable' resource in an effort to reduce carbon emissions, and Governor Jim Douglas believes other states will soon follow suit.
"A couple of months ago, I met with the president of our country along with other governors and we talked about a federal designation," said Douglas. "I hope that our Congress will consider that in the not too distant future."
Last year exports accounted for 6 per cent of Hydro Quebec's sales and 22 per cent of its profits.
As Hydro Quebec seeks to export more electricity, a renewable energy designation is likely to open doors.
Our view is that the United States will not be able meet the objectives of a low-carbon economy without this energy, and so it represents a win-win for everyone," said Charest.
Hydro Quebec is currently positioning itself to sell to the U.S. Midwest, and to more of New England.
