HQ - NO CHANGE IN POWER MARKET STRATEGY

12:23 18Sep2001 RSF-Hydro-Quebec says no change of strategy in US trade

QUEBEC CITY, Sept 18 (Reuters) - Hydro-Quebec said on Tuesday it had been staying out of the U.S. power market over the past few weeks because of mild weather and not because it was reevaluating its trade strategy as some traders suggested this week.
"There is no change in our sales strategy. There is nothing extraordinary there as the weather has been mild and the month of September is more quiet this year," said Hydro-Quebec spokeswoman Claudine Aucuit.
Hydro-Quebec, North America's largest power producer, has sold very little power to the United States. since Aug. 31, when its long-term contracts with New England utilities expired.
Some traders said the most interesting occurrence this week has been Hydro-Quebec's lack of participation in the New York and New England markets and that the Canadian utility's traders may have pulled back to evaluate their positions now that long-term contracts have expired.
Other traders said they believed Hydro-Quebec is conserving water for this winter because of a drought in parts of Canada.
Hydro-Quebec denied all these rumors.
"We are less present but there is no policy change," Hydro-Quebec's Aucuit told Reuters.
Hydro-Quebec said last month its sales outside Quebec, mainly to the United States, rose to C$638 million ($406 million) from C$438 million in the last quarter.
($1=$1.57 Canadian)
((Patrick White, Reuters Quebec City Bureau, +1-418-648-6442, patrick.white@reuters.com))

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