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MONTREAL, Jun 8, 2006 -- Canada NewsWire
In its Strategic Plan 2006-2010, Hydro-Québec will continue to focus on its three main priorities: energy efficiency, complementary development of hydroelectricity and wind power-the two major renewable energy sources in Québec-and technological innovation. This Strategic Plan comes in the wake of the Québec government's energy strategy, which stresses energy efficiency and the development of renewable energies. Financial Outlook Hydro-Québec anticipates net income of $2.5 billion per year from 2006 to 2010, in accordance with its shareholder's expectations. During this five-year period, the company will pay $6 billion in dividends to the Québec government, as well as $2 billion in water-power royalties that will be allocated to the Generations Fund. Note that these royalty payments will have no impact on electricity rates. Over the same period, the company will purchase more than $10 billion in goods and services from Québec businesses and support the equivalent of 236,000 person-years in jobs. Hydro-Québec Distribution Hydro-Québec Distribution will continue to offer its customers reasonable rates. Based on current forecasts, the division will file an application with the Régie de l'énergie to raise its rates by 4.8% effective April 1, 2007. For 2008 to 2010, the estimated annual rate increases are 3%, 1.6% and 0.1%. All rate applications will be filed for approval of the Régie de l'énergie, which will conduct a detailed analysis. With regard to energy efficiency, the division is boosting its objective to 4.7 TWh by 2010 and targeting 8 TWh by 2015. Hydro-Québec Distribution also plans to increase customer satisfaction. To this end, it will work harder at communication, improve the reliability of electricity service, and receive and process customer requests more efficiently. In addition, the division will continue to strive for greater efficiency and will step up its efforts to help customers who have difficulty making payments. Hydro-Québec Production Hydro-Québec Production will increase its generating capacity by accelerating project development. By 2014, the division will add 2,848 MW to its generating fleet, for an additional annual output of 15.8 TWh. The Eastmain-1-A/Sarcelle/Rupert project is of key importance in this regard: on its own, it will supply 8.5 TWh at a favorable cost of under 5cents/kWh. Hydropower development will give Hydro-Québec Production a 15-TWh margin of flexibility by the end of the decade, which is necessary to safeguard Québec's energy security and maintain the company's profitability. As announced in the Québec energy strategy, Hydro-Québec Production will create a portfolio of projects totaling 4,500 MW, including developments on the Romaine and Petit Mécatina rivers, among others. All projects will have to meet three criteria: they must be profitable, environmentally acceptable, and favorably received by local communities. Development of the hydroelectric generating fleet will enable the integration of wind power. Hydro-Québec Production will offer integration services for the 2,000 MW of wind power targeted by Hydro-Québec Distribution's second call for tenders. Hydro-Québec TransÉnergie Hydro-Québec TransÉnergie will continue to develop the transmission system. It will invest $5 billion between 2006 and 2010 to maintain service reliability and quality and meet growing needs by integrating the new generating capacity. Among these investments, the division plans to build a new 1,250-MW interconnection with Ontario. SOURCE: HYDRO-QUEBEC News Provided By |
