Hydro-Quebec creates power marketer for U.S. sales via new power line

The Hydro Renewable Energy Inc. (HRE) unit of Hydro-Quebec, ahead of sales of Canadian hydropower in the U.S. via a new transmission line, on June 3 applied with the Federal Energy Regulatory Commission for acceptance of its market-based rate tariff.

HRE was formed for the purpose of marketing renewable energy from Canada in the ISO New England region and other northeast markets. HRE is a wholly-owned direct subsidiary of H.Q. Energy Holdings Inc., and an indirect subsidiary of Hydro-Québec (HQ). All of the capital stock of HQ is held by the Minister of Finance on behalf of the Government of Québec. HQ is engaged in the generation of electric power predominantly from hydroelectric sources and the transmission, distribution and sale of such electric power to wholesale and retail customers within Québec and wholesale customers in neighboring markets.

HQ is directly interconnected with the transmission-owning provincial utilities in the provinces of Ontario and New Brunswick and also has direct interconnections with the ISO-NE and the New York Independent System Operator markets in the United States.

HRE does not own or control any electric generation, transmission or distribution assets either in Canada or the United States other than its rights to transmission capacity over the 1,090-MW Northern Pass Transmission Line (NPT Line) currently under development in New Hampshire by Northern Pass Transmission LLC (NPT), an indirect subsidiary of Eversource Energy (formerly known as Northeast Utilities).

The NPT Line is a bi-directional, high-voltage direct current (HVDC) line that will connect at the United States–Canadian border to an HVDC line and associated facilities being developed by Hydro-Québec TransÉnergie , a division of HQ. HRE has entered into a Transmission Service Agreement (TSA) whereby it will obtain firm transmission service over the NPT Line for the delivery of hydroelectric energy from Canada into the ISO-NE wholesale market. The TSA also will provide HRE with the ability to transmit and sell power from the United States into Québec. The NPT Line is expected to enter service in 2019.

HQ Production is the organizational division of HQ responsible for generating electricity to supply the domestic market. HQ Production controls almost all of the 36,643 MW of installed capacity in Québec (of which nearly all is hydroelectric generation) and sells its excess output into the wholesale market. HQ also controls, through HQ Production and HQ Distribution, an additional 9,671 MW of hydroelectric and other renewable generation purchased from third parties in Canada.

H.Q. Energy Services (U.S.) Inc. (HQUS), a wholly-owned subsidiary of HQ, is an energy marketer currently engaged the business of buying and selling electricity and related products in the United States markets. HQUS has been authorized by the commission to sell power at market-based rates.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.