Hydro-Qubec reaches draft agreement to buy energy from Apuiat wind farm

Hydro-Qubecannounced Wednesday it has concluded adraft contractwith promoters of the 200-megawattApuiatwind turbine project.

But "out of respect for their respective governance procedures," Hydro said the two sides have agreed to suspend the process leading to the signature of a final agreement until after the Quebec election.

The commercial elements of the proposed contractwere not disclosedand aHydro-Qubecspokesperson said theutility had nothing to say beyond its news release.

The Apuiat project would generatewind power in a partnership with the private renewable energy firmBoralexInc., which is a minority shareholder, and three Innucommunities in the province.

They are Pekuakamiulnuatshin the Lac Saint-Jean region,Essipitand Uashat Mak Mani-Utenamon the North Shore of the St. Lawrence River.

Renewable Energy Systems (RES) Canada Inc. is providing technical assistance for the wind farm.

Construction of the project has become an election issue, with Coalition AvenirQubecLeader FranoisLegaultquestioning the value of Hydro-Qubec buying more wind energywhen the utility already has an unsoldsurplus of electricity.

On Wednesday,Legaultcalled on Couillard to make the details of the draft agreement public.

"I am asking for more transparence from Philippe Couillard," Legaultsaid."Wemight have questions to ask [Hydro-Qubecpresident and CEO] ricMartel whoisn't too keen on the idea."

Legaultsaid he agrees the government needs better relations with the InnuFirst Nation.

"But we are going to produce electricity we do not need?" he said, adding that the government would be paying royalties for a project he says is not needed.

"At some point buying votes has its limits, it seems to me."

Legaultpointed out that last week, Martel said he believes the project could cost Hydro between$1.5 billion and $2 billion over 25 years.

Legaultalso noted that Quebec's auditor-general estimates Hydro-Qubechas lost $2.5 billion buying wind energy, which is more costly than hydro power, in the Gasp region.

The CAQis not opposed to somemix of hydro power and wind energy, the CAQleader said, but is concerned about the cost.

Wind project is needed, Couillard says

At a news conference in Montreal's West Island, Premier Philippe Couillard said the project was neededto create jobs and economic activity for theInnuNation.

He said in the21stcentury, Quebec can no longer take the natural resources and energyof theInnuwithout there being "visible and important benefits" in return.

"I'm not just talking about creating a few jobs,"Couillardadded. "They have to have their share and that is how we are going to succeed in developing northern Quebec.

"We have the choice either we develop in a spirit of constant confrontation or we develop in cooperation and sharing. And I clearly choose the second [option]."

Couillard was asked whether Martel, who is thought to still havequestions about Apuiat, would be president of Hydro after the election.

"We will start the election campaign and we are going to go ahead with the Apuiat project," Couillard said, calling the project"essential for the future of Quebec, the development of northern Quebec."

Energy Minister PierreMoreau, who supportsApuiatover the objections ofHydro-Qubec,told Radio-Canada he was happy "the parties came to an agreement."

The Apuiatproject calls for construction on a 113-squarekilometre site about 40 kilometres west of Port-Cartier on the North Shore of the St. Lawrence.

The site is in an area ofNistassinan, claimed by theInnuFirst Nation of UashatmakMani-utenamon in the Sept-les region, on public landinthe municipality of Port-Cartier

Port-Cartier Mayor AlainThibaultsupports the Apuiatproject.

"I have always been confident we would reach a negotiated agreement," he said on Wednesday.

With files from Radio-Canada