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The Supreme Court of Canada has agreed to hear an appeal of the Churchill Falls contract.

Back in 2010, then-premier Danny Williams announced plans to try to reopen the 1969 Churchill Falls power contract. Churchill Falls (Labrador) Corp., which is 65 per cent owned by Nalcor, operates the generating station. It went to Quebec Superior Court to argue that Hydro-Quebec should renegotiate the contract under the good faith provisions of the Quebec Civil Code.

The contract allows Hydro-Quebec to buy almost all the power from Churchill Falls at a low, fixed price for 65 years. The price went down when the renewal contract came into effect last year. The contract has long been a sore point in Newfoundland and Labrador politics.

The Quebec Superior Court dismissed the case and the Court of Appeal upheld that judgement. It found that, except in cases of real hardship, the general principle of good faith would be of no assistance in this situation.

Nalcor says a date has not yet been set for the appeal hearing, but expects it will happen within the next 12 months.

 

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