Decision on Upper Churchill contract being challenged
After having its arguments about the need to have Upper Churchill benefits redistributed dismissed by a Quebec Superior Court judge in late July, Nalcor Energy has challenged the decision to the Quebec Court of Appeal.
A file photo of Churchill Falls in Labrador. — RCMP photo
According to a statement issued this morning on behalf of subsidiary Churchill Falls (Labrador) Corporation (CFLCo), the provincial Crown corporation stated an appeal was filed Monday afternoon.
“CFLCo is disappointed with the judgment rendered by the trial judge in July dismissing the motion,” states the news release.
It goes on to state an appeal was always anticipated, whatever the initial decision, but Nalcor based its final decision to appeal on “a comprehensive review of the judgment and a thorough consultation with its external legal advisers.”
The case was first brought to the Quebec Superior Court in 2010, as reported previously in The Telegram, and provincial taxpayers are on the hook for at least $4 million in legal costs to date.
The provincial government, as a majority shareholder in CFLCo, has argued the Upper Churchill power contract signed in 1969 between CFLCo and Hydro-Québec is unfairly weighted, providing an unfair share of benefits to Quebec.
Judge Joel Silcoff, who dismissed the arguments for a renegotiation of the contract, said both sides are receiving what they bargained for.