N.L. hopes Hydro-Québec will reopen contract

The head of Newfoundland and Labrador's energy corporation, Nalcor, says he isn't discouraged by Quebec's public rejection of a request to reopen the Upper Churchill Falls hydroelectric power contract.

Nalcor's leader said Wednesday the contract was made between the two power companies and he is waiting  to hear officially from Hydro-Québec.

"We made a good strong decision here. Obviously, we stand by it. We need to hear back from Hydro-Québec and, when we do, we'll determine what the next steps are," said Nalcor CEO Ed Martin.

He said Nalcor is giving Hydro-Québec until Jan. 15 to deliver an official response.

A Quebec law firm told Nalcor there are grounds to mount a legal challenge of the Upper Churchill Falls contract.

On Tuesday, Quebec Natural Resources Minister Nathalie Normandeau told reporters in Quebec City she saw no grounds to reopen the deal.

The 65-year Upper Churchill contract, signed in 1969, has been the subject of several failed court actions by Newfoundland and Labrador and continues to be at the heart of a longstanding resentment toward Quebec.

On Monday, Newfoundland and Labrador Premier Danny Williams told the legislature that last year Hydro-Québec earned about $1.7 billion from the contract, while the Churchill Falls (Labrador) Corp., known as CF(L)Co, received only $63 million.

The deal allows Hydro-Québec to buy power at inexpensive rates from Newfoundland and Labrador, at a quarter of a cent per kilowatt hour, according to Williams, and then resell it for up to 36 times the price it paid.