History of Hydro-Québec
Encyclopedia
Hydro-Québec is a government-owned
Government-owned corporation
A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...

 public utility
Public utility
A public utility is an organization that maintains the infrastructure for a public service . Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies...

 established in 1944 by the Government of Quebec
Government of Quebec
The Government of Quebec refers to the provincial government of the province of Quebec. Its powers and structure are set out in the Constitution Act, 1867....

. The company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...

 is in charge of the generation
Electricity generation
Electricity generation is the process of generating electric energy from other forms of energy.The fundamental principles of electricity generation were discovered during the 1820s and early 1830s by the British scientist Michael Faraday...

, transmission
Electric power transmission
Electric-power transmission is the bulk transfer of electrical energy, from generating power plants to Electrical substations located near demand centers...

 and distribution
Electricity distribution
File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumers...

 of electricity
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...

 across Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....

. Its head office
Head Office
Head Office is a 1985 American comedy film, produced by HBO Pictures in association with Silver Screen Partners. It stars Judge Reinhold, Eddie Albert, Lori-Nan Engler, Jane Seymour, Richard Masur, Michael O'Donoghue, Ron Frazier, Merritt Butrick and was directed and written by Ken...

 is located in Montreal
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...

.

Origins

In the years after the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...

, voices were raised in Quebec asking for a government takeover in the electricity business. Many of the criticisms leveled at the so-called "electricity trust" focused on high rates and excessive profits. Inspired by the example of Adam Beck
Adam Beck
Sir Adam Beck was a politician and hydroelectricity advocate who founded the Hydro-Electric Power Commission of Ontario.-Biography:...

, who had nationalized much of the electric sector in Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....

 20 years earlier, local politician
Politician
A politician, political leader, or political figure is an individual who is involved in influencing public policy and decision making...

s, such as Philippe Hamel
Philippe Hamel
Philippe Hamel was a nationalist and progressive politician in Quebec, Canada.-Member of the legislature:Hamel entered politics to achieve the nationalization of all privately-owned electric companies...

 and Télesphore-Damien Bouchard
Télesphore-Damien Bouchard
Télesphore-Damien Bouchard was a politician in Quebec, Canada.Born in Saint-Hyacinthe, Quebec, he was the mayor of the municipality from 1917 to 1930 and from 1932 to 1944 and president of the Federation of Canadian Municipalities in 1918...

, strongly advocated moving Quebec towards a similar system. Soon after being elected Premier of Quebec
Premier of Quebec
The Premier of Quebec is the first minister of the Canadian province of Quebec. The Premier is the province's head of government and his title is Premier and President of the Executive Council....

 in 1939
Quebec general election, 1939
The Quebec general election of 1939 was held on October 25, 1939 to elect members of the Legislative Assembly of the Province of Quebec, Canada...

, Adélard Godbout
Adélard Godbout
Joseph-Adélard Godbout was an agronomist and politician in Quebec, Canada. He served as the 15th Premier of Quebec briefly in 1936, and again from 1939 to 1944. He was also leader of the Parti Libéral du Québec .-Youth and early career:Adélard Godbout was born in Saint-Éloi...

 warmed to the concept of a state-owned utility
Public utility
A public utility is an organization that maintains the infrastructure for a public service . Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies...

. Godbout was outraged by the inefficient power system dominated by Anglo-Canadian
English Canadian
An English Canadian is a Canadian of English ancestry; it is used primarily in contrast with French Canadian. Canada is an officially bilingual state, with English and French official language communities. Immigrant cultural groups ostensibly integrate into one or both of these communities, but...

 economic interests and the collusion between the Montreal Light, Heat & Power
Montreal Light, Heat & Power
The Montreal Light, Heat and Power Company was a utility company operating the electric and gas distribution monopoly in the area of Montreal, Quebec, Canada until its nationalization by the government of Quebec in 1944, under a law creating the Quebec Hydroelectric Commission, also known as...

 (MLH&P) and the Shawinigan Water & Power Company, the two main companies involved. At one point, he even called the duopoly an "economic dictatorship, crooked and vicious".

1944: First stage of state control

In the fall of 1943, the Godbout government tabled a bill
Bill (proposed law)
A bill is a proposed law under consideration by a legislature. A bill does not become law until it is passed by the legislature and, in most cases, approved by the executive. Once a bill has been enacted into law, it is called an act or a statute....

 to take control of MLH&P, the company running the gas and electric distribution in and around Montreal
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...

, Quebec's largest city. On April 14, 1944, the Quebec Legislative Assembly
National Assembly of Quebec
The National Assembly of Quebec is the legislative body of the Province of Quebec. The Lieutenant Governor and the National Assembly compose the Parliament of Quebec, which operates in a fashion similar to those of other British-style parliamentary systems.The National Assembly was formerly the...

 passed Bill 17, creating a publicly owned commercial venture, the Quebec Hydroelectric Commission, commonly referred to as Hydro-Québec. The act
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...

 granted the new Crown corporation an electric and gas distribution monopoly
Government monopoly
In economics, a government monopoly is a form of coercive monopoly in which a government agency or government corporation is the sole provider of a particular good or service and competition is prohibited by law...

 in the Montreal area and mandated Hydro-Québec to serve its customers "at the lowest rates consistent with a sound financial management", to restore the substandard electric grid and to speed up rural electrification
Rural electrification
Rural electrification is the process of bringing electrical power to rural and remote areas. Electricity is used not only for lighting and household purposes, but it also allows for mechanization of many farming operations, such as threshing, milking, and hoisting grain for storage; in areas...

 in areas with no or limited electric service.

MLH&P was taken over
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...

 the next day, April 15, 1944. The new management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...

 quickly realized that it would need to rapidly increase the company's 600-megawatt generation capacity in the next few years in order to meet growing demand. By 1948, Hydro-Québec had started the expansion of the Beauharnois power station. It then set its eyes on the Bersimis
Betsiamites River
The Betsiamites is a river of Côte-Nord, Quebec, Canada, which joins the Saint Lawrence River.The Pipmuacan Reservoir, impounded by the Bersimis-1 Dam, is roughly halfway down its course.-Hydro-electric facilities:...

 near Forestville
Forestville
Forestville is the name of several places:In the United States:* Forestville, California* Forestville, Connecticut, the southeastern portion of Bristol, Connecticut* Forestville, Maryland* Forestville, Michigan* Forestville, Minnesota...

, on the North Shore
Côte-Nord
Côte-Nord is the second largest administrative region by land area in Quebec, Canada, after Nord-du-Québec...

 of the Saint Lawrence River
Saint Lawrence River
The Saint Lawrence is a large river flowing approximately from southwest to northeast in the middle latitudes of North America, connecting the Great Lakes with the Atlantic Ocean. It is the primary drainage conveyor of the Great Lakes Basin...

, located 700 kilometres (435 mi) east of Montreal. The Bersimis-1
Bersimis-1 generating station
The Bersimis-1 generating station is a dam and a hydroelectric power station built by Hydro-Québec on the Betsiamites River, in Lac-au-Brochet, north of the town of Forestville, Quebec...

 and Bersimis-2
Bersimis-2 generating station
The Bersimis-2 generating station is a dam and a run-of-the-river hydroelectric power station built by Hydro-Québec on the Betsiamites River, in Lac-au-Brochet, north of the town of Forestville, Quebec...

 generating stations were built between 1953 and 1959 and were widely considered to be a bench trial
Bench trial
A bench trial is a trial held before a judge sitting without a jury. The term is chiefly used in common law jurisdictions to describe exceptions from jury trial, as most other legal systems do not use juries to any great extent....

 for the fledgling company. They also offered a preview of the large developments that occurred over the next three decades in Northern Quebec.

Other construction projects started in the Maurice Duplessis
Maurice Duplessis
Maurice Le Noblet Duplessis served as the 16th Premier of the Canadian province of Quebec from 1936 to 1939 and 1944 to 1959. A founder and leader of the highly conservative Union Nationale party, he rose to power after exposing the misconduct and patronage of Liberal Premier Louis-Alexandre...

 era included a second upgrade of the Beauharnois project and the construction of the Carillon generating station
Carillon Generating Station
The Carillon Generating Station is a hydroelectric power station on the Ottawa River near Carillon, Quebec, Canada. Built between 1959 and 1964, it is managed and operated by Hydro-Québec. It is a run-of-river generating station with an installed capacity of 752 MW, a head of , and a reservoir of...

 on the Ottawa River
Ottawa River
The Ottawa River is a river in the Canadian provinces of Ontario and Quebec. For most of its length, it now defines the border between these two provinces.-Geography:...

. Between 1944 and 1962, Hydro-Québec's installed capacity increased sixfold, from 616 to 3,661 megawatts.

1963: Second stage of state control

The onset of the Quiet Revolution
Quiet Revolution
The Quiet Revolution was the 1960s period of intense change in Quebec, Canada, characterized by the rapid and effective secularization of society, the creation of a welfare state and a re-alignment of politics into federalist and separatist factions...

 in 1960 did not stop the construction of new dams. On the contrary, it brought a new momentum to the company's development under the tutelage of a young and energetic Hydraulic Resources minister. René Lévesque
René Lévesque
René Lévesque was a reporter, a minister of the government of Quebec, , the founder of the Parti Québécois political party and the 23rd Premier of Quebec...

, a 38-year-old former television
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...

 reporter and a bona fide star of the new Lesage
Jean Lesage
Jean Lesage, PC, CC, CD was a lawyer and politician in Quebec, Canada. He served as the 19th Premier of Quebec from 22 June 1960, to 16 August 1966...

 government, was appointed to the Hydro-Québec portfolio as part of the liberal Premier
Premier
Premier is a title for the head of government in some countries and states.-Examples by country:In many nations, "premier" is used interchangeably with "prime minister"...

's "équipe du tonnerre" (English: "Dream Team"). Lévesque quickly approved continuation of the ongoing construction work and put together a team to nationalize the 11 remaining private companies that still controlled a substantial share of the electricity generation and distribution business in Quebec.

On February 12, 1962, Lévesque started his public campaign for nationalization. In a speech to the Quebec Electric Industry Association he bluntly called the whole electric business an "unbelievably costly mess". The minister then toured the province in order to reassure the population and refute the arguments of the Shawinigan Water & Power Company, the main opponent of the proposed takeover. On September 4 and 5, 1962, Lévesque finally convinced his liberal cabinet
Cabinet (government)
A Cabinet is a body of high ranking government officials, typically representing the executive branch. It can also sometimes be referred to as the Council of Ministers, an Executive Council, or an Executive Committee.- Overview :...

 colleagues to go ahead with the plan during a working retreat at a fishing camp north of Quebec City
Quebec City
Quebec , also Québec, Quebec City or Québec City is the capital of the Canadian province of Quebec and is located within the Capitale-Nationale region. It is the second most populous city in Quebec after Montreal, which is about to the southwest...

. The issue topped the liberal agenda during a snap election
Snap election
A snap election is an election called earlier than expected. Generally it refers to an election in a parliamentary system called when not required , usually to capitalize on a unique electoral opportunity or to decide a pressing issue...

 called two years early, and their chosen theme, "Maîtres chez nous" (in English: "Master in our Own Homes"), had a strong nationalist
Quebec nationalism
Quebec nationalism is a nationalist movement in the Canadian province of Quebec .-1534–1774:Canada was first a french colony. Jacques Cartier claimed it for France in 1534, and permanent French settlement began in 1608. It was part of New France, which constituted all French colonies in North America...

 undertone.

The Lesage government was reelected on November 14, 1962
Quebec general election, 1962
The Quebec general election of 1962 was held on November 14, 1962, to elect members of the Legislative Assembly of the Province of Quebec, Canada. The incumbent Quebec Liberal Party, led by Jean Lesage, won re-election, defeating the Union Nationale led by Daniel Johnson, Sr..In an unusual move,...

 and Lévesque went ahead with the plan. On Friday, December 28, 1962 at 6 pm, Hydro-Québec launched an hostile takeover, offering to buy all of the stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...

 in 11 companies at a set price, that was slightly above market value
Market value
Market value is the price at which an asset would trade in a competitive auction setting. Market value is often used interchangeably with open market value, fair value or fair market value, although these terms have distinct definitions in different standards, and may differ in some...

: Shawinigan Water & Power, Quebec Power, Southern Canada Power, Saint-Maurice Power, Gatineau Power, la Compagnie de pouvoir du Bas-Saint-Laurent, Saguenay Power, Northern Quebec Power, la Compagnie électrique de Mont-Laurier, la Compagnie électrique de Ferme-Neuve and La Sarre Power. After hedging their bets for a few weeks, management of the firms advised their shareholders to accept the C$604 million government offer. In addition to buying the 11 companies, most electric co-operatives and municipally owned utilities were also taken over and merged with the existing Hydro-Québec operations, which became the largest electric company in Quebec on May 1, 1963.

The 1960s and 1970s

Following the 1963 nationalization Hydro-Québec had to deal with three problems simultaneously. It first had to reorganize in order to seamlessly merge the new subsidiaries into the existing structure, while standardizing dozens of networks in various state of disrepair and upgrading large parts of the Abitibi
Abitibi-Témiscamingue
Abitibi-Témiscamingue is a region located in western Quebec, Canada, along the border with Ontario. It became part of the province in 1898. It has a land area of 57,674.26 km2 . As of the 2006 census, the population of the region was 143,872 inhabitants.-History:The land was first occupied...

 system from 25 to 60 Hz.

All of this had to be done while construction of the Manic-Outardes Complex was underway on the North Shore. By 1959, thousands of workers were building 7 new hydroelectric stations, including the 1314 metres (4,311 ft) wide Daniel-Johnson Dam
Daniel-Johnson Dam
The Daniel-Johnson Dam , formerly known as Manic-5, is a multiple arch buttress dam on the Manicouagan River which creates Manicouagan Reservoir. The dam is composed of 14 buttresses and 13 arches and is north of Baie-Comeau in Quebec, Canada...

, the largest of its kind in the world. Construction on the Manicouagan
Manicouagan River
The Manicouagan River is a river in Côte-Nord region of Quebec, Canada. The river originates at the Daniel-Johnson Dam of the Manicouagan Reservoir and flows approximately south, emptying into the Saint Lawrence River near Baie-Comeau...

 and Outardes
Rivière aux Outardes
The Rivière aux Outardes or Outardes River is a river in Quebec, Canada. The river originates in the Otish Mountains, and flows in a southerly direction for its entire course. It passes through Lake Plétipi and Burnt Islands Lake , and widens about midway to form the large Outardes 4 Reservoir...

 rivers was completed in 1978 with the inauguration of the Outardes-2 generating station.

These large projects raised a new problem that occupied company engineers for a few years: the transmission of the large amounts of power produced by generating stations located hundreds of kilometres away from the urban centers in southern Quebec in an economical fashion. A young engineer named Jean-Jacques Archambault
Jean-Jacques Archambault
Jean-Jacques Archambault was a Quebec engineer, died December 23, 2001. He worked at Hydro-Québec and is known for is work on the 735kV electric transmission technology.-735-kV transmission line:...

 drafted a plan to build 735 kV power lines, a much higher voltage than what was used at the time. Archambault persisted and managed to convince his colleagues and major equipment suppliers of the viability of his plan. The first 735 kV power line was put into commercial service on November 29, 1965.

Churchill Falls

When it bought the Shawinigan Water & Power Company, Hydro-Québec acquired a 20% share of a planned hydroelectric facility at Hamilton Falls
Churchill Falls
Churchill Falls are waterfalls named after former British Prime Minister, Winston Churchill. They are high, located on the Churchill River in Newfoundland and Labrador, Canada....

The falls were renamed to honor the late British Prime Minister, Sir Winston Churchill
Winston Churchill
Sir Winston Leonard Spencer-Churchill, was a predominantly Conservative British politician and statesman known for his leadership of the United Kingdom during the Second World War. He is widely regarded as one of the greatest wartime leaders of the century and served as Prime Minister twice...

, soon after his passing, in 1965.
in Labrador
Labrador
Labrador is the distinct, northerly region of the Canadian province of Newfoundland and Labrador. It comprises the mainland portion of the province, separated from the island of Newfoundland by the Strait of Belle Isle...

, a project led by a consortium of banks and industrialists, the British Newfoundland Corporation Limited
British Newfoundland Development Corporation
The British Newfoundland Development Corporation, or BRINCO was incorporated by a consortium of British companies in 1953 which undertook industrial development opportunities in the Canadian province of Newfoundland and Labrador...

(Brinco). After years of hard bargaining, the parties reached a deal on May 12, 1969 to finance the construction of the power plant. The agreement committed Hydro-Québec to buy most of the plant's output at one-quarter of a cent per kilowatt-hour for 65 years, and to enter into a risk-sharing agreement. Hydro-Québec would cover part of the interest risk and buy some of Brinco's debt, in exchange for a 34.2% share in the company owning the plant, the Churchill Falls (Labrador) Corporation Limited
Churchill Falls Labrador Corporation Limited
The Churchill Falls Corporation, also known as CFCo or CFLco is a Canadian electric company. The company was founded in 1961 and is based in St. John's, Newfoundland...

. The 5,428-megawatt Churchill Falls generating station delivered its first kilowatts on December 6, 1971. Its 11 turbines were fully operational by June 1974.

In the aftermath of the 1973 oil crisis
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...

, the Newfoundland government
Government of Newfoundland and Labrador
The Government of Newfoundland and Labrador refers to the provincial government of the province of Newfoundland and Labrador. Its powers and structure are set out in the Constitution Act, 1867....

, unhappy with the terms of the agreement, bought all of the shares in the Churchill Falls company that were not held by Hydro-Québec. The Newfoundland government then asked to reopen the contract, a demand refused by Hydro-Québec. After a protracted legal battle between the two neighboring provinces, the contract's validity was twice affirmed by the Supreme Court of Canada
Supreme Court of Canada
The Supreme Court of Canada is the highest court of Canada and is the final court of appeals in the Canadian justice system. The court grants permission to between 40 and 75 litigants each year to appeal decisions rendered by provincial, territorial and federal appellate courts, and its decisions...

, in 1984 and 1988.

The nuclear option

In the late 1960s and early 1970s, Hydro-Québec briefly considered building nuclear power plants to meet the energy needs of Quebec. The company partnered with Atomic Energy of Canada Limited (AECL) to build two CANDU nuclear reactors, in Bécancour
Bécancour, Quebec
Bécancour is a town in the Centre-du-Québec region of Québec, Canada; it is the seat of the Bécancour Regional County Municipality. It is located on the south shore of the Saint Lawrence River at the confluence of the Bécancour River, opposite Trois-Rivières.Wôlinak, an Abenaki Indian reserve, is...

, on the south shore of the Saint Lawrence River
Saint Lawrence River
The Saint Lawrence is a large river flowing approximately from southwest to northeast in the middle latitudes of North America, connecting the Great Lakes with the Atlantic Ocean. It is the primary drainage conveyor of the Great Lakes Basin...

, opposite Trois-Rivières
Trois-Rivières
Trois-Rivières means three rivers in French and may refer to:in Canada*Trois-Rivières, the largest city in the Mauricie region of Quebec, Canada*Circuit Trois-Rivières, a racetrack in Trois-Rivières, Quebec...

, the Gentilly nuclear generating stations
Gentilly Nuclear Generating Station
Gentilly Nuclear Generating Station is a Canadian nuclear power station located near Bécancour, Quebec. The facility derives its name from the Gentilly suburb of the city of Bécancour, in which it is located...

.

The first reactor, Gentilly-1, was a 266-megawatt CANDU-BWR
Boiling water reactor
The boiling water reactor is a type of light water nuclear reactor used for the generation of electrical power. It is the second most common type of electricity-generating nuclear reactor after the pressurized water reactor , also a type of light water nuclear reactor...

 unit, built between 1966 and 1970. Except for two brief periods, extending over 183 days in 1972, the plant was never put in commercial operation. In 1980, the plant was mothballed by AECL, who still owns the plant.

The second plant, Gentilly-2, is a 675-megawatt CANDU-PHW unit commissioned in 1983, after a 10-year construction period. On August 19, 2008, after several years of studies, the government of Quebec and Hydro-Québec announced its decision to go ahead with Gentilly-2's refurbishment in 2011 and 2012 at a cost of C$1.9 billion. The project will extend the plant's useful life until 2035.

"The Project of the Century"

Almost a year to the day after his April 1970 election
Quebec general election, 1970
The Quebec general election of 1970 was held on April 29, 1970 to elect members of the National Assembly of Quebec, Canada. The former Legislative Assembly had been renamed the "National Assembly" in 1968...

, Quebec Premier Robert Bourassa
Robert Bourassa
Jean-Robert Bourassa, was a politician in Quebec, Canada. He served as the 22nd Premier of Quebec in two different mandates, first from May 12, 1970, to November 25, 1976, and then from December 12, 1985, to January 11, 1994, serving a total of just under 15 years as Provincial Premier.-Early...

 launched a project which he hoped would help him fulfill a campaign promise to create new jobs. On April 30, 1971, in front of a gathering of loyal liberal supporters, he announced plans for the construction of a 10,000-megawatt hydroelectric complex in the James Bay
James Bay
James Bay is a large body of water on the southern end of Hudson Bay in Canada. Both bodies of water extend from the Arctic Ocean. James Bay borders the provinces of Quebec and Ontario; islands within the bay are part of Nunavut...

 area. After assessing three possible options, Hydro-Québec and the government chose to build three new dams on La Grande River
La Grande River
La Grande River is a river in northwestern Quebec, Canada, which rises in the highlands of north central Quebec and flows roughly west to drain into James Bay. It is the second largest river in Quebec, surpassed only by the Saint Lawrence River....

, named LG-2
Robert-Bourassa generating station
The Robert-Bourassa generating station is a hydroelectric power station on the La Grande River that is part of Hydro-Québec's James Bay Project in Canada...

, LG-3
La Grande-3 generating station
The La Grande-3 or LG-3 is a hydroelectric dam on the La Grande River in northern Quebec, part of Hydro-Québec's James Bay Project. The station can generate 2,418 MW and was commissioned in 1982-1984. It generates electricity through the reservoir and dam system. The dam and reservoir both are...

 and LG-4
La Grande-4 generating station
The La Grande-4 is a hydroelectric generating station on the La Grande River that is part of Hydro-Québec's James Bay Project. The station can generate 2,779 MW and was commissioned in 1984–1986...

.

On top of the technical and logistical challenges posed by a public works project of this scope in a harsh and remote setting, the man in charge, Société d'énergie de la Baie James
James Bay Energy
The Société d'énergie de la Baie James is the company in charge of building the hydroelectric development known as the James Bay Project in northern Quebec...

 president Robert A. Boyd
Robert A. Boyd
Robert A. Boyd, CM, OQ was a Canadian electric engineer and utility executive. He successfully led the construction of first phase of the James Bay hydroelectric project, a large dam complex built in northern Quebec by Hydro-Québec during the 1970s and early 1980s.Born in Sherbrooke in the Eastern...

, had to face the opposition of the Cree
Cree
The Cree are one of the largest groups of First Nations / Native Americans in North America, with 200,000 members living in Canada. In Canada, the major proportion of Cree live north and west of Lake Superior, in Ontario, Manitoba, Saskatchewan, Alberta and the Northwest Territories, although...

 residents of the area, who had grave concerns about the project's impact on their traditional lifestyle. In November 1973, the Crees got a preliminary injunction
Preliminary injunction
A preliminary injunction, in equity, is an injunction entered by a court prior to a final determination of the merits of a legal case, in order to restrain a party from going forward with a course of conduct or compelling a party to continue with a course of conduct until the case has been decided...

 that temporarily stopped the construction of the basic infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...

 needed to build the dams, forcing the Bourassa government to negotiate with them.

After a year of difficult negotiations, the Quebec
Government of Quebec
The Government of Quebec refers to the provincial government of the province of Quebec. Its powers and structure are set out in the Constitution Act, 1867....

 and Canadian governments
Government of Canada
The Government of Canada, formally Her Majesty's Government, is the system whereby the federation of Canada is administered by a common authority; in Canadian English, the term can mean either the collective set of institutions or specifically the Queen-in-Council...

, Hydro-Québec, the Société d'énergie de la Baie James and the Grand Council of the Crees
Grand Council of the Crees
The Grand Council of the Crees , or the GCC, is the political body that represents the approximately 16,357 Crees or “Iyyu” / “Iynu” of the Eeyou Istchee territory in the James Bay and Nunavik regions of Northern Quebec, Canada...

 signed the James Bay and Northern Quebec Agreement
James Bay and Northern Quebec Agreement
The James Bay And Northern Quebec Agreement was an Aboriginal land claim settlement, approved in 1975 by the Cree and Inuit of northern Quebec, and later slightly modified in 1978 by the Northeastern Quebec Agreement, through which Quebec's Naskapi First Nations joined the treaty...

 on November 11, 1975. The agreement granted the Crees financial compensation and the management of health and education services in their communities in exchange for the continuation of the project.

Between and tradesmen were employed on various James Bay construction sites in the period stretching from 1977 to 1981. Inaugurated on October 27, 1979, the LG-2 generating station, an underground powerhouse with a peak capacity of 5,616 megawatts is the most powerful of its kind in the world. The station, the dam and the associated reservoir were renamed in honor of Premier Bourassa a few weeks after his death in 1996. The construction of the first phase of the project was completed with the commissioning of LG-3 in June 1982 and of LG-4 in 1984. A second phase of the project was built between 1987 and 1996, adding five more power plants to the complex.

A controversial power line to the US

After two consecutive decades of sustained growth, the late 1980s and the 1990s were much more difficult for Hydro-Québec, especially on the environmental front. A new hydroelectric development and the construction of a direct current high voltage line built to export power to New England
New England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...

 faced strong opposition from the Crees as well as environmental groups from the US
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

.

In order to export power from the James Bay Project to New England, Hydro-Québec planned the construction of a 1200 kilometres (745.6 mi) long direct current power line, with a capacity of 2,000 megawatts, the so-called "Réseau multiterminal à courant continu" (English: Direct Current Multiterminal Network). Construction work on the line went without a problem except at the location where the power line had to cross the Saint Lawrence River
Saint Lawrence River
The Saint Lawrence is a large river flowing approximately from southwest to northeast in the middle latitudes of North America, connecting the Great Lakes with the Atlantic Ocean. It is the primary drainage conveyor of the Great Lakes Basin...

, between Grondines and Lotbinière
Lotbinière, Quebec
Lotbinière is a municipality in the Municipalité régionale de comté de Lotbinière in Quebec, Canada. It is part of the Chaudière-Appalaches region and the population is 909 as of 2009. It is named after seigneurie of which it was part...

.

Facing strong opposition from local residents to other options, Hydro-Québec built a 4 kilometres (2.5 mi) tunnel under the river, at a cost of C$144 millions, which delayed the project completion by two and a half years. The line was finally commissioned on November 1, 1992.

Great Whale Project

Hydro-Québec and the Bourassa government had a much harder time circumventing the next hurdle in northern Quebec. Robert Bourassa was reelected in late 1985
Quebec general election, 1985
The Quebec general election of 1985 was held on December 2, 1985, to elect members of the National Assembly of the Province of Quebec, Canada. The Quebec Liberal Party, led by former premier Robert Bourassa, defeated the incumbent Parti Québécois, led by premier Pierre-Marc Johnson.This election...

 after a 9-year hiatus. Shortly after taking office he announced yet another hydro development in the James Bay area. The C$12.6 billion Great Whale Project involved the construction of three new generating stations with a combined capacity of 3,160 megawatts. It was to produce 16.3 terawatt-hours of energy each year by the time it was completed in 1998–1999.

The plan immediately proved controversial. As they had in 1973, the Cree people opposed the project and filed lawsuits against Hydro-Québec in Quebec and Canada to prevent its construction, and also took action in many US states to prevent sales of the electricity there.

The Crees succeeded in getting the Canadian federal government
Canadian federalism
Canada is a federation with two distinct jurisdictions of political authority: the country-wide federal government and the ten regionally-based provincial governments. It also has three territorial governments in the far north, though these are subject to the federal government...

 to establish a parallel environmental assessment process in order to delay construction. Cree leaders also got support from US-based environmental groups and launched a public relation campaign in the US and in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

, attacking the Great Whale Project, Hydro-Québec and Quebec in general
Quebec bashing
Anti-Quebec sentiment is opposition or hostility toward the government, culture, or the francophone people of Quebec.The term Quebec bashing is used in the French-language media to refer to what is perceived and depicted by Quebec nationalists as defamatory anti-Quebec coverage, in the...

. Launched in the months following the failure of the Meech Lake Accord
Meech Lake Accord
The Meech Lake Accord was a package of proposed amendments to the Constitution of Canada negotiated in 1987 by Prime Minister Brian Mulroney and ten provincial premiers. It was intended to persuade the government of the Province of Quebec to endorse the 1982 Canadian Constitution and increase...

 and the Oka Crisis
Oka Crisis
The Oka Crisis was a land dispute between a group of Mohawk people and the town of Oka, Quebec, Canada which began on July 11, 1990 and lasted until September 26, 1990. At least one person died as a result...

, the campaign prompted a coalition of Quebec-based environmental groups to dissociate themselves from the Cree campaign.

However, the Cree campaign was successful in New York State, where the New York Power Authority
New York Power Authority
The New York Power Authority , officially the Power Authority of the State of New York , is a New York State public benefit corporation and the largest state-owned power organization in the United States. NYPA provides some of the lowest-cost electricity in New York State, operating 17 generating...

 canceled a US$5 billion power contract signed with Hydro-Québec in 1990. Two months after the 1994 general election
Quebec general election, 1994
The Quebec general election of 1994 was held on September 12, 1994, to elect members of the National Assembly of Quebec, Canada. The Parti Québécois, led by Jacques Parizeau, defeated the incumbent Quebec Liberal Party, led by Daniel Johnson, Jr.....

, the new Premier, Jacques Parizeau
Jacques Parizeau
Jacques Parizeau, is an economist and noted Quebec sovereignist who was the 26th Premier of the Canadian province of Quebec from September 26, 1994 to January 29, 1996.-Early life and career:...

, announced the suspension of the Great Whale Project, declaring it unnecessary in order to meet Quebec's energy needs.

The moratorium
Moratorium (law)
A moratorium is a delay or suspension of an activity or a law. In a legal context, it may refer to the temporary suspension of a law to allow a legal challenge to be carried out....

 on new hydro projects in northern Quebec after the Great Whale cancellation forced the company's management to develop new sources of electricity to meet increasing demand. In September 2001, Hydro-Québec announced its intention to build a new combined cycle
Combined cycle
In electric power generation a combined cycle is an assembly of heat engines that work in tandem off the same source of heat, converting it into mechanical energy, which in turn usually drives electrical generators...

 gas turbine
Gas turbine
A gas turbine, also called a combustion turbine, is a type of internal combustion engine. It has an upstream rotating compressor coupled to a downstream turbine, and a combustion chamber in-between....

 plant—the Centrale du Suroît plant—in Beauharnois
Beauharnois, Quebec
Beauharnois is a city located in the Beauharnois-Salaberry Regional County Municipality of southwestern Quebec, Canada and is part of Greater Montreal Area. The city's population as of the Canada 2006 Census was 11,918...

, southwest of Montreal, stressing the pressing need to secure additional electricity supply to mitigate against any shortfall in the water cycle
Water cycle
The water cycle, also known as the hydrologic cycle or H2O cycle, describes the continuous movement of water on, above and below the surface of the Earth. Water can change states among liquid, vapor, and solid at various places in the water cycle...

 of its reservoir
Reservoir
A reservoir , artificial lake or dam is used to store water.Reservoirs may be created in river valleys by the construction of a dam or may be built by excavation in the ground or by conventional construction techniques such as brickwork or cast concrete.The term reservoir may also be used to...

s. Hydro's rationale also stressed the cost-effectiveness of the plant and the fact that it could be built within a two year period.

The announcement came at a bad time since attention was drawn to the ratification by Canada of the Kyoto Protocol
Kyoto Protocol
The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...

. With estimated emissions levels of 2.25 Mt of carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...

 per year, the Suroît plant would have increased the provincial CO2 emissions by nearly 3%. Faced with a public uproar—a poll conducted in January 2004 found that two of every three Quebecers were opposed to it—the Jean Charest
Jean Charest
John James "Jean" Charest, PC, MNA is a Canadian politician who has been the 29th Premier of Quebec since 2003. He was leader of the federal Progressive Conservative Party of Canada from 1993 to 1998 and has been leader of the Quebec Liberal Party since 1998....

 government abandoned the project in November 2004.

Battling the elements


During the same period, Hydro-Québec had to deal with three major disruptions to its electric transmission system that were primarily caused by natural disasters. The incidents highlighted a major weakness of Hydro's system: the great distances between the generation facilities and the main markets of southern Quebec.

Two blackouts in a year

On April 18, 1988 at 2:05 am, all of Quebec and parts of New England
New England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...

 and New Brunswick
New Brunswick
New Brunswick is one of Canada's three Maritime provinces and is the only province in the federation that is constitutionally bilingual . The provincial capital is Fredericton and Saint John is the most populous city. Greater Moncton is the largest Census Metropolitan Area...

 lost power because of an equipment failure at a critical substation on the North Shore
Côte-Nord
Côte-Nord is the second largest administrative region by land area in Quebec, Canada, after Nord-du-Québec...

, between Churchill Falls and the Manicouagan area. The blackout
Power outage
A power outage is a short- or long-term loss of the electric power to an area.There are many causes of power failures in an electricity network...

, which lasted for up to 8 hours in some areas, was caused by ice deposits on transformation equipment at the Arnaud substation.

Less than a year later, on March 13, 1989 at 2:44 am, a large geomagnetic storm
March 1989 geomagnetic storm
The March 1989 geomagnetic storm was a severe geomagnetic storm that caused the collapse of Hydro-Québec's electricity transmission system. It occurred during solar cycle 22.-Geomagnetic storm and auroras:...

 caused variations in the earth's magnetic field
Earth's magnetic field
Earth's magnetic field is the magnetic field that extends from the Earth's inner core to where it meets the solar wind, a stream of energetic particles emanating from the Sun...

, tripping circuit breaker
Circuit breaker
A circuit breaker is an automatically operated electrical switch designed to protect an electrical circuit from damage caused by overload or short circuit. Its basic function is to detect a fault condition and, by interrupting continuity, to immediately discontinue electrical flow...

s on the transmission network. The James Bay network went off line in less than 90 seconds, giving Quebec its second blackout in 11 months. The power failure lasted 9 hours, and forced Hydro-Québec to implement a program to reduce the risks associated with geomagnetically induced currents.

Ice storm of 1998

In January 1998, five consecutive days of heavy freezing rain
Freezing rain
Freezing rain is the name given to rain that falls when surface temperatures are below freezing. The raindrops become supercooled while passing through a sub-freezing layer of air, many hundred feet , just above the surface, and then freeze upon impact with any object they encounter. The resulting...

 caused the largest power failure in Hydro-Québec's history. The weight of the ice collapsed 600 kilometres (372.8 mi) of high voltage
High voltage
The term high voltage characterizes electrical circuits in which the voltage used is the cause of particular safety concerns and insulation requirements...

 power lines and over 3000 kilometres (1,864.1 mi) of medium and low voltage
Low voltage
Low voltage when used as an electrical engineering term concerning an electricity supply grid or industrial use, broadly identifies safety considerations of the system based on the voltage used. The meaning of the term "low voltage" is somewhat different when used with regard to a more typical end...

 distribution lines in southern Quebec. Up to 1.4 million Hydro-Québec customers were forced to live without power for up to five weeks.

Part of the Montérégie
Montérégie
Montérégie is an administrative region in southwest Québec. It includes the cities of Boucherville, Brossard, Granby, Longueuil, Salaberry-de-Valleyfield, Saint-Jean-sur-Richelieu, Saint-Hyacinthe, Sorel-Tracy, and Vaudreuil-Dorion....

 region, south of Montreal, was the worst hit area and became known as the Triangle of Darkness (French: Triangle noir) by the media and the population. Ice accumulation exceeded 100 millimetres (4 in) in some locations. Customers on the Island of Montreal
Island of Montreal
The Island of Montreal , in extreme southwestern Quebec, Canada, is located at the confluence of the Saint Lawrence and Ottawa Rivers. It is separated from Île Jésus by the Rivière des Prairies....

 and in the Outaouais region were also hit by the power outage, causing significant concerns since many Quebec households use electricity for heating.

Hydro-Québec immediately mobilized all crews, including retirees, and asked for the assistance of utility crews from Eastern Canada and the northeastern US. The Canadian Army
Canadian Forces
The Canadian Forces , officially the Canadian Armed Forces , are the unified armed forces of Canada, as constituted by the National Defence Act, which states: "The Canadian Forces are the armed forces of Her Majesty raised by Canada and consist of one Service called the Canadian Armed Forces."...

 was also involved in the restoration of power. More than 10,000 workers had to rebuild a significant portion of the network one pylon at a time. At the height of the crisis, on January 9, 1998, the island of Montreal was fed by a single power line. The situation was so dire the Quebec government temporarily resorted to rolling blackouts in downtown Montreal in order to maintain the city's drinking water supply.

Electric service was fully restored on February 7, 1998, 34 days later. The storm cost Hydro-Québec C$725 million in 1998 and over C$1 billion was invested in the following decade to strengthen the power grid against similar events. However, part of the operation needed to close the 735 kV loop around Montreal was approved at the height of the crisis without prior environmental impact assessment
Environmental impact assessment
An environmental impact assessment is an assessment of the possible positive or negative impact that a proposed project may have on the environment, together consisting of the natural, social and economic aspects....

 and quickly ran into opposition from residents of the Val Saint-François area in the Eastern Townships
Eastern Townships
The Eastern Townships is a tourist region and a former administrative region in south-eastern Quebec, lying between the former seigneuries south of the Saint Lawrence River and the United States border. Its northern boundary roughly followed Logan's Line, the geologic boundary between the flat,...

. The opponents went to court to quash the Order in Council authorizing the power line.

Construction work resumed after the National Assembly
National Assembly of Quebec
The National Assembly of Quebec is the legislative body of the Province of Quebec. The Lieutenant Governor and the National Assembly compose the Parliament of Quebec, which operates in a fashion similar to those of other British-style parliamentary systems.The National Assembly was formerly the...

 passed a law retroactively approving the work done in the immediate aftermath of the ice storm, but it also required public hearing
Hearing (law)
In law, a hearing is a proceeding before a court or other decision-making body or officer, such as a government agency.A hearing is generally distinguished from a trial in that it is usually shorter and often less formal...

s on the remaining projects. Construction of the Hertel-Des Cantons high voltage line was properly approved in July 2002 and commissioned a year later.

New hydroelectric developments

After a pause in the 1990s, Hydro-Québec restarted its construction activities in the early years of the 21st century. Recent projects include the Sainte-Marguerite-3 (SM-3) station in 2004 (884 megawatts); Toulnustouc in 2005 (526 megawatts); Eastmain-1 in 2007 (480 megawatts); Peribonka (385 megawatts) and Mercier in 2008 (50.5 megawatts), Rapides-des-Cœurs (76 megawatts) and Chute-Allard (62 megawatts) in 2009.

On February 7, 2002, Premier Bernard Landry
Bernard Landry
Bernard Landry, is a Quebec lawyer, teacher, politician, who served as the 28th Premier of Quebec , leader of the Opposition and leader of the Parti Québécois .-Personal:...

 and Ted Moses
Ted Moses
Ted Moses, is a Cree politician from Eastmain, a small remote village in northern Quebec, Canada. He is a former Grand Chief of the Crees . In addition, Mr. Moses is a recipient of the title of "Officer" of the National Order of Quebec.-Profile:Ted Moses was born in Eastmain, in the James Bay...

, the head of the Grand Council of the Crees
Grand Council of the Crees
The Grand Council of the Crees , or the GCC, is the political body that represents the approximately 16,357 Crees or “Iyyu” / “Iynu” of the Eeyou Istchee territory in the James Bay and Nunavik regions of Northern Quebec, Canada...

, signed an agreement allowing the construction of new hydroelectric projects in northern Quebec. The Paix des Braves
Agreement Respecting a New Relationship Between the Cree Nation and the Government of Quebec
The Agreement Respecting a New Relationship Between the Cree Nation and the Government of Quebec is an agreement between the Government of Quebec, Canada, and the Grand Council of the Crees...

agreement clarified some provisions of the James Bay and Northern Quebec Agreement
James Bay and Northern Quebec Agreement
The James Bay And Northern Quebec Agreement was an Aboriginal land claim settlement, approved in 1975 by the Cree and Inuit of northern Quebec, and later slightly modified in 1978 by the Northeastern Quebec Agreement, through which Quebec's Naskapi First Nations joined the treaty...

, granted a C$4.5 billion compensation to the Cree Nation to be paid over a 50 year period, established a special wildlife and forestry regime, and gave assurances that Cree businesses and workers would get a share of the economic spin offs of future construction projects in the area.

In return, the Cree nation agreed not to challenge new construction projects in the area, such as the Eastmain-1 generating station—authorized by the government in March 1993—and the partial diversion of the Rupert River
Rupert River
The Rupert River is one of the largest rivers in Quebec, Canada. From its headwaters in Lake Mistassini, the largest natural lake in Québec, it flows west into Rupert Bay on James Bay. The Rupert drains an area of . There is some extremely large whitewater on the river, but paddlers can avoid...

 to the Robert-Bourassa Reservoir
Robert-Bourassa Reservoir
The Robert-Bourassa Reservoir is a man-made lake in northern Quebec, Canada. It was created in the mid 1970s as part of the James Bay Project and provides the needed water for the Robert-Bourassa and La Grande-2-A generating stations. It has a maximum surface area of , and a surface elevation...

, subject to a number of provisions regarding the protection of the natural and social environment.

Construction on the first 480-megawatt plant started in the spring of 2002 with a road linking the project site to the Nemiscau substation 80 kilometres (49.7 mi) away. In addition to the plant, built on the left bank of the Eastmain River
Eastmain River
The Eastmain River is a river in northwestern Quebec which rises in north central Quebec and flows 800 km west to drain into James Bay. 'East Main' is an old name for the east side of James Bay. This river drains an area of 46,400 km²...

, the project required the construction of a 890 metres (2,919.9 ft) wide and 70 metres (229.7 ft) tall dam, 33 smaller dams and a spillway. The three generating units of Eastmain-1 entered into service in the spring of 2007. The plant has an annual output of 2.7 terawatt-hours.

These projects are part of Quebec's 2006–2015 energy strategy. The document called for the development of 4,500 megawatts of new hydroelectric generation, including the development of the 1,550 MW Romaine River
Romaine River
The Romaine River is a river in the Côte-Nord region of the Canadian province of Quebec. It is long. It is not to be confused with the Olomane River that is to the east and had the same name for a long time....

 complex, under construction since May 2009, the integration 4,000 megawatts of wind power
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....

, increased electricity exports and the implementation of new energy efficiency
Efficient energy use
Efficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...

 programs.

Expansion in the Maritime provinces

On October 29, 2009, the premier
Premier
Premier is a title for the head of government in some countries and states.-Examples by country:In many nations, "premier" is used interchangeably with "prime minister"...

s of New Brunswick
New Brunswick
New Brunswick is one of Canada's three Maritime provinces and is the only province in the federation that is constitutionally bilingual . The provincial capital is Fredericton and Saint John is the most populous city. Greater Moncton is the largest Census Metropolitan Area...

, Shawn Graham
Shawn Graham
Shawn Michael Graham, MLA is a New Brunswick politician, who served as the 31st Premier of New Brunswick. He received a Bachelor of Physical Education Degree in 1991 and a Bachelor of Education Degree in 1993, he worked for New Brunswick's civil service before being elected to the Legislative...

, and Quebec, Jean Charest
Jean Charest
John James "Jean" Charest, PC, MNA is a Canadian politician who has been the 29th Premier of Quebec since 2003. He was leader of the federal Progressive Conservative Party of Canada from 1993 to 1998 and has been leader of the Quebec Liberal Party since 1998....

, signed a controversial memorandum of understanding
Memorandum of understanding
A memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...

 to transfer most assets of NB Power
NB Power
NB Power , formerly known as New Brunswick Power Corporation and New Brunswick Electric Power Commission is the primary and former monopoly electrical utility in the Canadian province of New Brunswick...

 to Hydro-Québec. The C$4.75 billion agreement would transfer most generation, transmission and distribution assets of the New Brunswick Crown corporation to a subsidiary of the Quebec utility, including the Point Lepreau Nuclear Generating Station
Point Lepreau Nuclear Generating Station
Point Lepreau Nuclear Generating Station is a Canadian nuclear power station located 2 km northeast of Point Lepreau, New Brunswick. The facility was constructed between 1975-1983 by NB Power, the provincially-owned public utility....

 and 7 hydroelectric plants
Hydroelectricity
Hydroelectricity is the term referring to electricity generated by hydropower; the production of electrical power through the use of the gravitational force of falling or flowing water. It is the most widely used form of renewable energy...

, but would exclude three thermal generating stations
Thermal power station
A thermal power station is a power plant in which the prime mover is steam driven. Water is heated, turns into steam and spins a steam turbine which drives an electrical generator. After it passes through the turbine, the steam is condensed in a condenser and recycled to where it was heated; this...

 in Dalhousie, Belledune and Coleson Cove. The deal also includes provisions to reduce industrial power rates at the levels offered by Hydro-Québec to similar customers and a 5-year rate freeze on residential and commercial rates. The controversial scheme is subject to review and approval by the New Brunswick Legislative Assembly.

Hydro-Québec will pay C$750 million from its cash flow
Cash flow
Cash flow is the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, finite period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company's value and situation.Cash flow...

 and issue C$4 billion in bonds
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...

. CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...

 Thierry Vandal says the deal would allow Hydro-Québec to double its sales to the United States by 2011, but some, like New England Power Generators Association president, Angela O'Connor, worry that it could be standing in the way of Canadian competitors from exporting energy to New England. However, these worries are unfounded responds Jean-Thomas Bernard, chair of Electricity economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...

 at Université Laval
Université Laval
Laval University is the oldest centre of education in Canada and was the first institution in North America to offer higher education in French...

, in Quebec City
Quebec City
Quebec , also Québec, Quebec City or Québec City is the capital of the Canadian province of Quebec and is located within the Capitale-Nationale region. It is the second most populous city in Quebec after Montreal, which is about to the southwest...

, since non-discrimatory policies set by the US Federal Energy Regulatory Commission
Federal Energy Regulatory Commission
The Federal Energy Regulatory Commission is the United States federal agency with jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates...

 has guaranteed open access to the North American power grid. "Since Hydro-Québec is already a major exporter to the United States, they would do nothing to jeopardize the agreements". Pierre-Marcel Desjardins, an economist at the Université de Moncton
Université de Moncton
The Université de Moncton is a French language university located in Moncton, New Brunswick serving the Acadian community of Atlantic Canada...

, stated that right now the grid is full so Hydro-Québec could slow the development of new transmission lines but it could be more difficult to develop additional transmission for new energy projects. Hydro-Québec's Vandal responds to this criticism by stating his company's intention to invest in extra transmission capacity to New England.

Two weeks after the New Brunswick announcement, Charest announced the start of formal discussions with the government of Prince Edward Island
Prince Edward Island
Prince Edward Island is a Canadian province consisting of an island of the same name, as well as other islands. The maritime province is the smallest in the nation in both land area and population...

, on November 13, 2009. The talks between the two provinces could lead to a long-term supply contract with Hydro-Québec, the sale of Maritime Electric
Maritime Electric
Maritime Electric is the supplier of electricity in Prince Edward Island, Canada. Maritime Electric is a public utility regulated by the Island Regulatory and Appeals Commission under the Electric Power Act and the Renewable Energy Act...

, the province's main electric distributor owned by Fortis Inc.
Fortis Inc.
Fortis Inc. is a St. John's, Newfoundland and Labrador based international diversified electric utility holding company. It primarily operates in Canada and the Caribbean. In 2005, it earned a profit of $137.1 million Canadian from revenue of $1.44 billion....

, and the construction of a submarine transmission line linking PEI and the Magdalen Islands
Magdalen Islands
The Magdalen Islands form a small archipelago in the Gulf of Saint Lawrence with a land area of . Though closer to Prince Edward Island and Nova Scotia, the islands form part of the Canadian province of Quebec....

.

After two months of controversies, New Brunswick and Quebec reprentatives signed a second agreement, reducing the scope of the sale. The Globe and Mail
The Globe and Mail
The Globe and Mail is a nationally distributed Canadian newspaper, based in Toronto and printed in six cities across the country. With a weekly readership of approximately 1 million, it is Canada's largest-circulation national newspaper and second-largest daily newspaper after the Toronto Star...

 and Radio-Canada
Canadian Broadcasting Corporation
The Canadian Broadcasting Corporation, commonly known as CBC and officially as CBC/Radio-Canada, is a Canadian crown corporation that serves as the national public radio and television broadcaster...

 both reported on January 18, 2010 that the sale would involve the hydroelectric and nuclear power plant, which would be bought by Hydro-Québec for C$3.4 billion. The government of New Brunswick would still own the transmission and distribution divisions and NB Power would enter into a long-term power purchase agreement with Hydro-Québec. The PPA would allow NB Power to deliver the rate freeze for residential and general customers. However, the industrial rates rollback would be smaller than under the original MOU.

On March 24, 2010, Premier Graham announced the deal had fallen through, due to Hydro-Québec's concern over unanticipated risks and costs of some aspects such as dam security and water levels.

Hydro-Québec's evolution

Hydro-Québec evolution, 1944-2008
Installed capacity
(in megawatts)
Sales
(in terawatt-hours)
Residential customers
(in thousands)
Permanent employees
1944 n/a
1949
1954
1959
1964
1969
1974
1979
1984
1989
1994
1999
2004
2008

See also

  • Montreal Light, Heat & Power
    Montreal Light, Heat & Power
    The Montreal Light, Heat and Power Company was a utility company operating the electric and gas distribution monopoly in the area of Montreal, Quebec, Canada until its nationalization by the government of Quebec in 1944, under a law creating the Quebec Hydroelectric Commission, also known as...

  • Shawinigan Water & Power Company
  • Gatineau Power Company
    Gatineau Power Company
    Gatineau Power Company was an electricity generation and distribution company in Quebec, Canada. It was originally a subsidiary of Canadian Pacific and later of International Paper...

  • James Bay Project
    James Bay Project
    The James Bay Project is a series of hydroelectric development with a combined installed capacity of over 16,000 megawatts built since 1974 for Hydro-Québec by the on the La Grande and other rivers of Northern Quebec....

  • Hydro-Québec's electricity transmission system
    Hydro-Québec's electricity transmission system
    Hydro-Québec's electricity transmission system is an expansive, international power transmission system located in Quebec, Canada with extensions into the Northeastern United States...

  • Timeline of Quebec history
    Timeline of Quebec history
    This article presents a detailed timeline of Quebec history. Events taking place outside Quebec, for example in English Canada, the United States, Britain or France, may be included when they are considered to have had a significant impact on Quebec's history....


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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