QUEBEC - Vermont's two biggest utilities signed a deal Thursday aimed at increasing the amount of power the state gets from Quebec.
"Reaching a new long-term agreement with Hydro-Quebec is a good deal for ratepayers and strengthens the state's economic future," Gov. James Douglas said. "This new contract will provide stable, clean renewable power at a competitive price through 2038."
Terms of the deal are confidential but the U.S. utilities involved - Central Vermont Public Service and Green Mountain Power - anticipate buying up to 225 megawatts from Hydro-Quebec starting in 2012.
The agreement will have to be approved by the Vermont Public Service Board.
Thierry Vandal, Hydro-Quebec's president, said the memorandum of understanding is a natural extension of the business relationship between the utility and Vermonters.
"It will allow us to optimize our exports of clean renewable electricity, and Vermonters will continue to benefit from a reliable energy source," he said.
Premier Jean Charest said Quebec and Vermont had established relationships in many sectors.
"Today's agreement is yet another example of this collaboration," he said. "Today, Quebec strengthens its commercial ties to Vermont; together we continue to pursue the fight against climate change."
Quebec and Vermont also signed deals on sharing data and expertise in the agrifood and agriculture sector after a two-day meeting between Charest and Douglas.
They also signed an accord on the management of Lake Champlain.
Charest praised Douglas' commitment to greater ties with Quebec and invested him as an officer of the Order of Quebec, the first time an American governor has received the honour.
The premier says Vermont and Quebec have shared interests and the state and the province have worked together to promote policies conducive to free trade.
He says he and Douglas have worked together to get the administration of U.S. President Barak Obama to recognize hydroelectricity as a source of clean and renewable energy.
Vermont was Quebec's main New England trading partner in 2009.