A $3-billion deal has been signed between Manitoba Hydro and Xcel Energy of Minneapolis to sell surplus power to the Crown Corporation. The details of the deal were announced on Friday by Premier Greg Selinger and Hydro CEO Bob Brennan.

Hydro CEO pointed that it will help them to sell energy to the US state and also get a good price for it. He stressed that the Company will not need to build anything new and still get a good price. It also makes the Company optimistic to supply power to other places in US.

The sale of the electricity will start in the year 2015 and can be extended till 2025. Xcel will purchase between 375 and 500 megawatts of electricity. The deal is still subject to the approval of regulators in both the countries.

Premier Salinger confirmed that the deal will help Manitoba and its reputation as a place providing clean energy and will allow people in the region to pay very low rates for power in the North American region.

Manitoba already has deals with the US states of Wisconsin and Minnesota. These deals are based on the construction of a dam.

The deal will offer 250 megawatts of power over 15 years. The deal will ensure that Manitoba Hydro will generate billions of dollars in revenues.