The MOU institutes a two-phase process to explore a possible arrangement for the sale and purchase of power. The first part of the process is a six-month mutual assessment of the merits of long-term sale and purchase agreement, as well as the development of an action plan to address any technical, regulatory and statutory requirements of the transaction. Upon completion of Phase I, the parties may enter Phase 2 negotiations for a binding agreement on the sale and purchase of power.Key to developing the Lower Churchill successfully would be long-term power purchase agreements that would insure creditors can recover investments in the project, which has been estimated to cost upwards of CDN $9.0 billion to complete.
Even if Rhode Island enters into a power purchase agreement the total involved is only 7% of the project's total estimated generating capacity. Rhode Island is also one of the farthest potential markets for Lower Churchill power.
No other power purchases or potential power purchases have been announced to date.