The Manitoba Hydro-Electric Board : Reasons for decision in the matter of The Manitoba Hydro-Electric Board; application under the National Energy Board Act

Estimates of the revenue, cost and profit associated with the proposed export sale are summarized in Table 4. (page 15) For the purposes of the cost recovery analysis, MH took the revenues that could be realized by the alternative sale of the energy on an interruptible basis as representing the costs of the proposed sale to NSP. [...] In the submission of MH, the analysis showed that the estimated revenue of $15.8-18.5 million from the minimum export required under the agreement with NSP would be approximately twice the revenue that could be realized by the alternative sale of the energy on an interruptible basis. [...] Without limiting the generality of the foregoing, the Board is required to satisfy itself that the power to be exported is surplus to reasonably foreseeable Canadian requirements and that the price to be charged is just and reasonable in relation to the public interest. [...] Based on the above considerations the Board finds that the export revenues would exceed the associated costs and is satisfied that the export price would recover an appropriate share of the costs incurred in Canada. [...] The Board is satisfied that the export price would not be materially less than the least cost alternative price and that the export price is the best price that could be negotiated by the Applicant in the United States market.