After repeated failures in righting a 50-year-old wrong, there finally comes a victory for the province in its long-standing dispute with Hydro-Quebec over the Upper Churchill Falls contract.
The Quebec Court of Appeal has ruled that Churchill Falls Corporation has the right to sell energy produced from the Upper Churchill above a certain threshold, but the Quebec utility retains the right to sell Churchill Falls energy up to a monthly cap.
It’s the latest in a protracted legal battle between CF(L)Co and Hydro Quebec over the contentious Upper Churchill contract, which will remain in place until 2041.
(Churchill Falls generating station and Smallwood Reservoir.)
Premier Responds
Premier Dwight Ball says it’s based on the interpretation of the original 1969 contract and the water management rights, and how it affects Muskrat Falls.
He says the decision gives CF(L)Co the right to manage water on the Upper Churchill, meaning it won’t have an impact on Muskrat Falls power generation.
Meanwhile, President and CEO of CF(L)Co, Stan Marshall says while they are pleased with the decision, it is complex and the company will need some time to complete a comprehensive review of the judgement and its financial and operational impacts.
