Carbon-free Marblehead Municipal Light Dept (MMLD) Power Portfolio Announcement with Hydro-Quebec

Posted on: December 14, 2020 - 10:52am

Marblehead Municipal Light Department Announces Carbon-Free Power and Transmission
Agreement with Hydro-Québec
Marblehead, Mass. – November 30, 2020 – The Marblehead Municipal Light Department (MMLD) is
participating in a new hydroelectric power and transmission agreement that will increase the carbon-free
generation in its power portfolio without increasing electric rates to its customers.
MMLD is participating in a five year power flow rights agreement negotiatied by its public joint action
agency, the Massachusetts Municipal Wholesale Electric Company (MMWEC). MMWEC and the joint
action agency in Connecticut, the Connecticut Municipal Electric Energy Cooperative (CMEEC)
collaborated on behalf of their municipal utility members to sign the deal with Hydro-Québec (HQ), a
Canadian public utility. The carbon-free hydroelectric power from Canada is flowing on existing
transmission lines on which MMWEC and CMEEC hold contractual transmission rights. Under the terms
of the new agreement, carbon-free hydroelectric power began flowing on November 1, 2020.
Under the deal, HQ agrees to purchase transmission rights owned by MMWEC and CMEEC. The transfer
of transmission rights enables HQ to flow clean hydroelectric power from northern Quebec to a delivery
terminal just outside of Boston. The power puchase is for firm power, thus guaranteeing the amount of
clean carbon-free power Marblehead and other MMWEC participating utilities will receive annually. The
agreement specifies that the cost of the power to Marblehead and other MMWEC members is effectively
reduced by the price HQ pays to Marblehead and other MMWEC members for the transfer of their
contractual transmission rights to HQ.
Marblehead and eighteen other MMWEC member utilities participating in this agreement are collectively
purchasing 15 megawatts through this transaction. The 15 megawatts of firm power translates to 131,400
megawatt hours of electric power annually. Marblehead’s share, 0.75 megawatts, translates to 6,570
megawatt hours of electric power supplied annually to Marblehead customers. Marblehead’s annual
share of the firm carbon-fee power equates to the annual power consumed by 828 Marblehead residential
customers--- 9.3% of all Marblehead residential customers.
As indicated in annual reports submitted to the Massachusetts Department of Environmental Protection
and Department of Public Utilities, MMLD’s power portfolio was 37% carbon-free in 2019. Assuming
Marblehead’s annual electric power remains flat next year, this new power purchase will increase
MMLD’s reported carbon-free generation by approximately 6.2%, to a projected total of 43% reported
carbon-free power.
“The Marblehead Municipal Light Department is very pleased we’re participating in this deal,” stated
MMLD General Manager Joe Kowalik. “It aligns well with our strategy to Go Green without Going in the
Red.”
“It’s exactly the type of power deal that MMLD and all Massachusetts municipals want in our power
portfolios today,” said MMLD Board Chairman Mike Hull. “We truly appreciate the fine work done by the
MMWEC team. They saw an opportunity in the changing New England energy market and made this deal
a reality.”
The Marblehead Municipal Light Department is the local, town-owned electric utility that’s been providing
electricity to Marblehead customers for 125 years. Hydro Quebec is a public electric utility, established by
the Province of Quebec government 75 years ago. Today it owns and manages more than 60
hydroelectric generators with a combined capacity of more than 37,000 megawatts. MMWEC was created
45 years ago by the Commonwealth of Massachusetts as a non-profit, public corporation and political
subdivision, authorized to assist municipal electric utilities in Massachusetts with financial and technical
expertise. Today MMWEC has 20 municipal utility members and 28 power project participants.