Hydro-Québec and Newfoundland in court over Churchill Falls contract again
For the umpteenth time Hydro-Quebec and Newfoundland and Labrador are going to court in an effort by the Newfoundland government to open the 1969 contract for hydroelectricity produced at Churchill Falls in Labrador.
The Supreme Court will hear the case today.
Under that agreement Hydro-Quebec has been purchasing electricity from the plant at .02 cents per kilowatt-hour and has been reselling it domestically and internationally at many times the purchase price.
The CBC says to date, the contract has generated more than $26 billion for Hydro-Quebec and about $2 billion for Newfoundland and Labrador.
Hydro and the Newfoundland government have been in court over the issue 17 times with Newfoundland arguing that the price of electricity was unpredictable at the time and that the contract is now unfair.
Hydro has argued that it assumed the costs and the risks of the project at that time.
The contract is due to expire in 2041.