Nfld. & Labrador

Nalcor seeking Supreme Court of Canada appeal after recent Churchill Falls decision

Following a Quebec court decision in August, the Churchill Falls (Labrador) Corporation is trying to make its case before the Supreme Court of Canada.

N.L. utility says there are 'serious grounds to seek leave to appeal the decision'

Churchill Falls remains a sore point for many Newfoundland and Labrador, because of a long-running contract signed decades ago with Hydro-Quebec. (CBC)

The Churchill Falls (Labrador) Corporation is trying to take a dispute over its decades-old contract with Hydro-Québec to the Supreme Court of Canada.

CF(L) Corp. filed an application with the SCC on Friday for permission to appeal a decision handed down from the Quebec Court of Appeal on Aug. 1. That decision upheld the 1969 contract between CF(L) Corp. and Hydro-Québec, as well as its renewal contract which went into effect Sept. 1, allowing the Quebec utility to continue buy Churchill Falls power for cheap, flat rates and resell it at much higher prices.

In a press release Monday, Nalcor Energy, the parent company of CF(L) Corp., said it "has decided there are serious grounds to seek leave to appeal the decision" after reviewing the Aug. 1 judgement and seeking advice from its legal counsel. 

The corporation first filed a motion with the Quebec Superior Court requesting an amendment to the pricing terms of the renewal contract in 2010, saying the contract was unfair and did not share the value of power equitably.  

However, the court ruled against CF(L) Corp.

It then filed an appeal with the Quebec Court of Appeal in Aug. 2014, which also ruled against CF(L) Corp. 

The renewal contract that came into effect on Sept. 1 will remain in effect for 25 years.