New York City, March 3, 2010 — Pioneer Power Solutions, Inc. announced today that Hydro Quebec has entered into two contracts with Pioneer unit Pioneer Transformers for the manufacture of distribution transformers.
Hydro Quebec is the largest generator of electricity in Canada and operates the largest power transmission network in North America, including 15 interconnections allowing energy interchanges with other Canadian provinces and the U.S. Northeast.
The first of the two contracts is a renewal of Pioneer’s existing master agreement for the production of pad-mount transformers. Pad-mount transformers are designed for use in grade level and underground commercial and residential electric distribution systems where safety, reliability and aesthetics are especially important.
The existing supply contract was executed in 2006 and provided for an initial term of two years, with two one-year extension options. Both options were exercised by Hydro Quebec. The new contract takes effect in April 2010 and is also for a maximum term of four years, including two one-year extension options.
In addition, Pioneer received a first-time contract from Hydro Quebec for the supply of submersible transformers. The submersible product line is intended for frequent or continuous submerged or underground operation, designed to withstand hot, cold or unclean environments while operating securely and efficiently over many years.
Like the pad-mount contract, the master agreement for submersibles provides for a maximum term of four-years, including extension options.
“We are extremely pleased by this extension and expansion of our critical supply relationship with one of the largest utilities in North America and the world’s largest producer of hydropower,” said Nathan Mazurek, CEO of Pioneer. Mr. Mazurek continued, “Hydro Quebec is a strong supporter of local engineering and manufacturing expertise and we have been a proud beneficiary of this commitment for over four decades.”
Hydro Quebec generates, transmits and distributes electricity. Its sole shareholder is the Quebec government. It uses mainly renewable generating options, in particular hydropower, and supports the development of wind energy through purchases from independent power producers. It also conducts research in energy-related fields, such as energy efficiency.