Supreme Court to rule on Quebec-N.L. feud over Churchill Falls hydro riches
The Supreme Court of Canada will deliver a decision Friday in one of Canada’s bitterest interprovincial feuds — the notorious 1969 Churchill Falls hydro deal between Quebec and Newfoundland and Labrador.
Profits from the hydroelectric dam and power station in Labrador have been in dispute for decades, and a ruling in Newfoundland and Labrador’s favour could mean billions of dollars to ease the cash-strapped province’s considerable financial burdens.
The decision will determine whether Hydro-Quebec has a “good faith” obligation to re-negotiate the deal, based on unforeseeable changes in electricity markets over time.
Terms of the contract between the two provinces have delivered more than $27.5 billion to Hydro-Quebec and around $2 billion to Newfoundland and Labrador.