NL Hydro has entered into a temporary power agreement with Corner Brook Pulp and Paper to buy 140,000 megawatt hours of power at $187 per hour.

That’s a significant reduction in cost from the current agreement at $275 per megawatt hour, which will come to an end in January.

The new agreement will be in place until the end of June, and NL Hydro will be able to use Corner Brook Pulp and Paper’s power supply when needed.

The provincial government says the agreement will provide them with the opportunity to review and consider Kruger’s $700 million proposal to diversify and upgrade its operations in Corner Brook.