Quebec to buy out New Brunswick power

FREDERICTON, New Brunswick, Oct. 29 (UPI) -- The province of Quebec is poised to spend $10 billion to buy out most of New Brunswick's electric utility, the St. John Telegraph-Journal reported Thursday.

The deal would erase the New Brunswick utility's $4.8 billion debt and open the doors for Quebec to export electricity to northeastern U.S. states, the newspaper said.

The premiers of both Canadian provinces were scheduled to sign a memorandum of understanding in Fredericton, New Brunswick, Thursday.

The deal has to be approved by New Brunswick's provincial legislature and if passed, won't take effect until next year, the newspaper said.

While some political dissent is expected, the deal will likely face popular support in New Brunswick as it guarantees no increases in electricity prices for five years and a reduction in industrial rates.