| Hydro-Quebec's electricity exports greatly affect our economy and our environment. They may be concluded either under "interconnection agreements" to sell excess capacity and production during off-peak periods, or completed under "firm sales" contracts. Hydro-Quebec exports could thereby replace production plants that are needed and difficult to build south of the border.; Economics and regulation of the American industry have led to the writing of too much rigidity into the clauses. There are long term, responsibility, major force and other clauses that prevent the contracts from adapting to the changing competitive market conditions. Utilities involved in such international sales would be well advised to adopt standard formats, preferably of medium term duration. In this way, Hydro-Quebec will ensure itself of becoming a specialized supplier of electricity to the United States and thereby take advantage of its low production costs. |
