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The Federal Energy Regulatory Commission (FERC) has approved the funding arrangement for a major transmission project linking Hydro-Quebec with ISO New England that would deliver low-cost hydropower to consumers in the New England region.

The project is expected to reduce greenhouse gas emissions by an estimated 4 million to 6 million tons of carbon dioxide per year by displacing gas-fired generation in New England.

Northeast Utilities Service Co., NSTAR Electric Co. and Hydro-Quebec TransEnergie are currently negotiating a joint development agreement for the design, planning and construction of a 1,200 MW high-voltage transmission line that will cross over the U.S.-Canadian border and connect to ISO New England's backbone 345 kV transmission system. This expansion will make significant amounts of surplus hydropower available for export to the U.S.

"This project provides the opportunity for consumers in a region of the country that has tight constraints on electricity supplies to get access to clean, low-cost energy," says Jon Wellinghoff, chairman of FERC.

H.Q. Energy Services Inc. is taking responsibility for any of the project's risks and agreed to participant funding for the project. Under a participant funding plan, the project costs will not be included in the rates for transmission service under ISO New England's Open Access Transmission Tariff.

SOURCE: Federal Energy Regulatory Commission



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