Hydro-Quebec (cont.)

In 1994, GMP modified its power-supply arrangements with Hydro-Quebec, which effectively reduced the price of power Hydro-Quebec would supply to GMP. Under the 1994 arrangement GMP will purchase research-and-development work from Hydro-Quebec.

• As one example, GMP and Hydro-Quebec sponsor a specially equipped electric vehicle. The vehicle is part of EVermont, a research-and-demonstration project to test electric vehicles in northern rural settings. The GMP/Hydro-Quebec car is outfitted with a unique battery-warming system designed to improve its performance during cold weather.

In early 1996, as part of our continuing efforts to hold down the cost of power, GMP negotiated further changes to our power-supply purchases from Hydro-Quebec. Under the terms of the 1996 arrangement:

• Hydro-Quebec has the opportunity, through GMP, to sell additional power into the Northeast.
• GMP will receive payments totaling $4.1 million over the next two years.

These arrangements testify to the strong, mutually beneficial relationship GMP has developed with Hydro-Quebec.

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