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

October 03, 2016 - 7:50 AM

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.

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.

News from © The Canadian Press, 2016
The Canadian Press

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