Contract with Hydro-Quebec hasn’t been misinterpreted: energy company

ST. JOHN’S, N.L. – The company that runs the generating station at Churchill Falls in Labrador says it has accurately interpreted its contract with Hydro-Quebec, which has filed a motion asking a court to affirm its right to buy virtually all of the power from the Upper Churchill dam.

The Churchill Falls (Labrador) Corp. says it has completed a preliminary review of the motion filed Monday by Hydro-Quebec in Quebec Superior Court.

The legal challenge involves the Crown-owned utility’s right to access energy from the Upper Churchill dam based on a deal signed in 1969.

The government-owned utility in Quebec takes issue with assertions by the Churchill Falls (Labrador) Corp. that from 2016 — when the Upper Churchill power contract is renewed — until 2041 when it expires, Hydro-Quebec would only be entitled to monthly allotments of energy.

The Churchill Falls (Labrador) Corp. says after reviewing the contract, that position doesn’t change.

It says it will continue to fulfil contractual obligations and will not comment further because the matter is before the courts.

Premier Kathy Dunderdale of Newfoundland and Labrador has said the legal challenge is an attempt to foil the $7.7-billion Muskrat Falls hydro project now under construction farther down the Churchill River in Labrador.