Reference Re Upper Churchill Water Rights Reversion Act (Nfld) [1984] 1 S.C.R. 297 is a famous constitutional reference question put to the Supreme Court of Canada . The Court found that legislation passed by the government of Newfoundland to take back water rights contracted out to the province of Quebec was unconstitutional. The decision had a huge impact on both provinces, as the Churchill Falls generating station is one of the biggest producers of hydro-electric power in the region and the agreement guarantees Quebec will receive a majority of the revenue from the Falls until 2034.
16-695: By an Act of the Province of Newfoundland, the Churchill Falls (Labrador) Corporation (CFLCo) developed hydro-electric generators at the Churchill Falls , in Labrador . In 1969, the company, controlled by the British Newfoundland Development Corporation (BRINCO) entered an agreement with Hydro-Québec , a public utility owned by the government of Quebec , to sell a large majority of the power generated by
32-630: Is 0.25425¢ per kilowatt-hour until 2016 and 0.20¢ for the last 25 years of the contract —to build and maintain power lines to carry the power to market and to enter into a risk-sharing agreement whereas the Quebec Crown corporation would cover part of the interest risk and buy some of BRINCO's debt, in exchange for an increased share in CF(L)Co. The 5,428-megawatt generating station delivered its first kilowatt hours on December 6, 1971 and its 11 turbines were fully operational by June 1974. In 1974
48-430: Is the second largest underground power station in the world, with a rated capacity of 5,428 MW of power, one oil-fired plant, four gas turbines and 26 diesel plants. Every year, Hydro generates and transmits over 80% of the electrical energy consumed by Newfoundlanders and Labradorians – over 6,487 GWh of energy in 2004. Hydro also distributes power directly to 35,000 customers in rural Newfoundland and Labrador. In 1975,
64-783: The Newfoundland Supreme Court to recall 800 megawatts (MW) of the Churchill Falls power from CF(L)Co based upon the lease granted to the corporation in 1961. By 1980, the case had not been resolved, and in that year the Newfoundland Legislature passed the Re Upper Churchill Water Rights Reversion Act to reclaim the water rights granted to the corporation. Both legislations and the contract itself were subject to protracted legal battles between
80-691: The Newfoundland and Labrador Power Commission , a crown corporation originally established to assist in rural electrification , was renamed Newfoundland and Labrador Hydro Corporation . Newfoundland and Labrador Hydro is the parent company of the Hydro Group of Companies, which comprises The Nova Scotia government commissioned (from SNC-Lavalin ) a study in 2009 to consider an Atlantic wide regional electricity market operator. A $ 6.2 billion deal between Newfoundland and Labrador's Nalcor Energy and Halifax, Nova Scotia-based Emera to develop
96-506: The Act's purpose and effect, the Court found that the Act was colourable . That is, the form of the Act appears to address a valid matter but in substance actually addresses a matter outside its authority. The "Pith and Substance" of the Act, its dominant feature or purpose, was to interfere with the right of Hydro-Québec granted by the agreement with Churchill Falls Corp to receive power from across
112-482: The CF(L)Co, expropriated the company's assets, including Hydro-Québec 's participation in the joint venture. The province submitted a reference to the Newfoundland Court of Appeal , which found it intra vires (within the power of) the province. The Court stated that the Act was ultra vires the province and so struck it down. In performing pith and substance analysis on the legislation by looking at
128-499: The Churchill Falls Corporation in 1965 when the name of the falls was changed to commemorate former British Prime Minister Winston Churchill . CF(L)Co began construction on Churchill Falls Generating Station in 1966 and on May 12, 1969, signed a power contract with Hydro-Québec . The agreement committed Hydro-Québec to buy most of the plant's output at one-quarter of a cent per kilowatt-hour—the exact rate
144-561: The Falls at a low fixed rate for the next 65 years. After buying out BRINCO 's shares in 1974, the government of Newfoundland began to explore ways to get a greater portion of the power generated from the Falls. In 1980, the legislature passed the Upper Churchill Water Rights Reversion Act , which reverted ownership of the Falls to the provincial government, repealed the Act that granted the land to
160-534: The Government of Newfoundland and Labrador purchased a controlling interest in CF(L)Co from BRINCO and turned it over to the Newfoundland and Labrador Power Commission . The Commission had a 65.8% share in the corporation and the remaining 34.2% was owned by Hydro-Québec . In 1967, the year CF(L)Co qualified for Crown Corporation status , the Newfoundland Government initiated proceedings in
176-543: The Lower Churchill Project was announced in November 2010. On November 30, 2012, a federal loan guarantee deal for financing of the project was signed by Prime Minister Stephen Harper , Newfoundland and Labrador Premier Kathy Dunderdale and Nova Scotia Premier Darrell Dexter . On December 17, 2012, the provincial government announced project sanction. Emera received approval to proceed with
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#1732782917931192-662: The Maritime Link from the Nova Scotia Utility and Review Board in 2013. Financial close for the loan guarantee occurred in late 2013. On September 23, 2020, the first unit at Muskrat Falls was synced to the electricity grid in Labrador. Power from the remaining three units was originally expected to come online in the fall of 2021. However, there were delays in construction, including on the corresponding Labrador–Island Link which will transmit generated power to
208-552: The north-eastern areas of the United States. Between 2007 and 2021, NL Hydro was a subsidiary of the provincial Crown-owned energy holding company Nalcor Energy . Newfoundland and Labrador Hydro's installed generating capacity, 8034 megawatts (MW), is the fourth largest of all utility companies in Canada . Generating assets consist of 16 hydroelectric plants, including the Churchill Falls hydroelectric plant , which
224-455: The provincial border. Churchill Falls (Labrador) Corporation Limited Churchill Falls (Labrador) Corporation Limited , also known as CF(L)Co or CFLco is a Canadian electric company. The company was founded in 1961 and is based in St. John's, Newfoundland and Labrador . Churchill Falls (Labrador) Corporation Limited operates as a subsidiary of Newfoundland and Labrador Hydro . CF(L)Co
240-572: The two neighboring provinces, ending up before the Supreme Court of Canada . The court declared the Upper Churchill Water Rights Reversion Act ultra vires in 1984, and twice affirmed the validity of the 1969 contract in 1988. Newfoundland and Labrador Power Commission Newfoundland and Labrador Hydro ( NL Hydro ), commonly known as Hydro , is a provincial Crown corporation that generates and delivers electricity for Newfoundland and Labrador , as well as portions of Quebec and
256-618: Was originally formed in 1958 as a subsidiary of British Newfoundland Development Corporation (BRINCO) and known as the Hamilton Falls Power Corporation, it built and operated the Churchill Falls hydroelectric complex. In 1961, the Government of Newfoundland and Labrador granted the Hamilton Falls Power Corporation a 99-year lease to the 67,340 square kilometers watershed of the Upper Churchill. The Hamilton Falls Power Corporation became known as
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