The New York Power Authority confirmed on March 29 that it will not buy $8 billion worth of power from Hydro-Quebec. NYPA was acting on the recommendation of its new president, David Freeman, who suggested on March 2 that the New York state utility shouldn’t buy the power.
“We don’t need the power, the price is too high and there are unresolved environmental questions in Quebec,” said a statement from Freeman on March 29. The contract would have provided New York State with 800 megawatts of
power starting in 1999.
Just a few days later, Consolidated Edison, a utility which serves New York City, backed away from an agreement to buy an estimated $2 billion worth of electricity from Hydro-Quebec. Con Ed notified some of its shareholders that it had agreed to put off for 18 months any decision on the 780-megawatt contract. If New York still faces huge power surpluses in 18 months, financial analysts told the Globe and Mail that Con Ed is unlikely to proceed with a 20-year contract with Hydro-Quebec.