Vermont, Quebec to miss deadline on power deal

Both sides say they are close to an agreement

July 31, 2010|Dave Gram, Associated Press

MONTPELIER — Vermont’s utilities and Hydro-Quebec will not make today’s deadline for completing a new long-term power-purchase contract, but officials said yesterday they are confident a deal is close and an announcement will happen soon.

The July 31 deadline for executing the contract was set March 11, when Governor Jim Douglas traveled to Quebec City to join Premier Jean Charest of Quebec and utility officials to announce a tentative deal.

Under that accord, Vermont would get 225 megawatts of power — equal to about a quarter of that state’s demand for electricity — from Quebec from 2012 to 2038.

The two sides said they would negotiate the final terms by June 30 and sign the contract by today.

“Should execution of the agreement by all parties fail to occur for any reason prior to July 31, 2010, the memorandum of understanding and the obligations of the parties to negotiate a final agreement will terminate,’’ Charest’s office said in a statement at the time.

The two sides haven’t made the deadline but are talking and are close to an agreement, Vermont utility officials said. A Hydro-Quebec spokeswoman would only say, “We are very pleased with the progress of these discussions.’’

Robert Dostis, spokesman for Green Mountain Power, said yesterday, “We are definitely on track, but it’s taking a little longer to work out all the final details. The deadline has been extended and we’re very confident we’ll have a contract soon.’’

Central Vermont Public Service Corp., the other Vermont utility involved in the negotiations, acknowledged that it expected to have the details finalized by now.

“We remain close to that schedule, and we expect that we’ll have something to announce in the near future,’’ spokesman Steve Costello said.