Hydro-Quebec files court case aimed at Churchill, Muskrat Falls

James McLeod jmcleod@thetelegram.com
Published on July 22, 2013

Hydro Quebec made a filing in Quebec Superior Court Monday asking for a declaration from the court about its rights respecting the Churchill Falls contract.

In a news release, Hydro-Quebec objected to two recent positions taken by the company that runs Churchill Falls jointly for Nalcor and Hydro Quebec, calling them “ill founded.”

While the news release does not specifically mention Muskrat Falls, it appears to be aimed at the water management plan and the joint management agreement that allows the new develop to proceed lower down the river.

In the release, Hydro-Quebec asserts that it has “the exclusive right to purchase virtually all of the power and energy produced by Churchill Falls Generating Station until August 31, 2041,” and “the right to benefit from operational flexibility.”

The current plan to essentially operate the Churchill Falls and Muskrat Falls developments on an integrated basis has been the plan for several years, and Hydro-Quebec has not publicly objected before now, but a group of lawyers in the province have previously warned that this is a possibility.

In the release, Hydro-Quebec said that CFLCo has also been selling more power to Newfoundland and Labrador Hydro than it is allowed to under the original 1969 power contract.

The Canada Newswire release can be read HERE.