Labrador company asks top court to review lopsided hydro deal with Quebec

ST. JOHN’S, N.L. — Canada’s top court has been asked to review the 1969 Churchill Falls deal that has given Hydro-Quebec many times more in profits than Newfoundland and Labrador.

The case was launched in 2010 after Hydro-Quebec rebuffed calls from Newfoundland and Labrador to reopen the contentious deal.

The original agreement did not reflect rising energy values and has caused friction between the two provinces for decades.

The Churchill Falls dam in Labrador has generated more than $26 billion for Hydro-Quebec versus about $2 billion for Newfoundland and Labrador.

Hydro-Quebec has successfully argued in court that it took on costs and risks for the project when the original contract was signed.

SOUND OFF

SOUND OFF: Strengthening our wildfire training

18h ago

ARMCHAIR MAYOR

ROTHENBURGER: City caught flat-footed with sale of The Loop drop-in property

23h ago

The Tattle of Hastings

THE TATTLE OF HASTINGS: The Pearl of Schubert Drive

Apr 17, 2024

The Churchill Falls (Labrador) Corporation argues the 1969 deal was automatically renewed on Sept. 1 for another 25 years –raising new questions for the Supreme Court of Canada.

The Canadian Press