Hydro-Quebec: TransEnergie U.S. Ltd. Key in Directlink Project

Boston-Jan. 20-FWN--Hydro-Quebec, a leading North American energy provider based in Montreal, announced that its subsidiary, TransEnergie U.S. Ltd., will play a key role in the construction and operation of Directlink, a new interconnection linking the states of New South Wales and Queensland, Australia. The project, estimated at U.S.$70 million, will be completed early in 2000, using new ABB High Voltage Direct Current (HVDC) Light technology.

The company said that another subsidiary, Hydro-Quebec International (HQI), has become a co-owner of the new interconnection in partnership with the Quebec Solidarity Fund--the investment arm of the Quebec Federation of Labor- -and NorthPower, an Australian electrical distribution company.

TransEnergie U.S. Ltd. will provide technical expertise during the construction and operation of the interconnection, as well as transmission marketing expertise. HQI is investing 33.33% of the total project cost, the Quebec Solidarity Fund is investing 16.67% and NorthPower, 50%. ABB, a world leader in electrical engineering, will supply the cables and converters and will provide technical expertise during other phases of the project.

"Directlink will enable us to further hone our expertise in transmission services in a deregulated market, expertise that can later be put to use in North America as deregulation here evolves," said Jeffrey A. Donahue, President of TransEnergie U.S. Ltd.

The 180-MW interconnection will link the two existing grids via 80-kV D.C. underground cables over a distance of 42 miles, with A.C. and D.C. converters at each end of the line.

HQI and NorthPower will each independently market their own 90 MW of transmission capacity, through an auction to be held later this year. The difference in energy and capacity prices between the two states will allow surplus electricity produced in New South Wales to be sold at competitive prices in Queensland, thus assuring revenue for each co-owner of the interconnection link.

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