11/18/2013 02:58 EST | Updated 01/25/2014 04:01 EST

Manitoba and Saskatchewan reach power deal to send hydro west

WINNIPEG - The Manitoba and Saskatchewan governments have reached a deal that will see more hydro power shipped west.

SaskPower has agreed to purchase an additional $100 million in power from Manitoba Hydro over the next eight years.

The two provinces signed a memorandum in 2011 to look at greater co-operation, partly in response to Saskatchewan's growing economy and energy demands.

The two provinces' Crown utilities also say they are working toward a much larger, 500-megawatt deal for the years after 2020.