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.
56-661: 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
112-524: A guaranteed peak capacity of 34,342 MW —at a set price of 2.79¢ per kWh. Order in council 1277-2001 specifies quantities to be delivered for each of the 8,760 hourly intervals, which vary from 11,420 to 34,342 MW. According to the 2017 annual report the workforce stood at 19,786 employees, both permanent and temporary workers. And, a total of 1,304 employees were hired. In 1981, the Parti Québécois government redefined Hydro-Québec's mission by modifying
168-488: A network of 112,089 kilometres (69,649 mi) of medium and low voltage lines. The division is the sole electric distributor across the province, with the exception of 9 municipal distribution networks — in Alma , Amos , Baie-Comeau , Coaticook , Joliette , Magog , Saguenay , Sherbrooke and Westmount —and the electric cooperative of Saint-Jean-Baptiste de Rouville . Hydro-Québec Distribution buys most of its power from
224-580: A target of 25% of cars sold in 2020 to be electric. The plan also called for provincial utility company Hydro-Quebec to develop a strategy for the deployment of public charging infrastructure. This resulted in the creation of "The Electric Circuit" ( French : Le Circuit Électrique ), the largest public network of charging stations for electric vehicles in Quebec . The first 30 charging stations were put into use in March 2012. The network's first 400V fast charger
280-512: A way to increase the government's annual dividend without resorting to privatization. Others, like columnist Bertrand Tremblay of Saguenay 's Le Quotidien , claim that privatization would signal a drift to the days when Quebec's natural resources were sold in bulk to foreigners at ridiculously low prices. "For too long, Tremblay writes, Quebec was somewhat of a banana republic, almost giving away its forestry and water resources. In turn, those foreign interests were exporting our jobs associated with
336-619: 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
392-645: Is also responsible for the production of power in remote communities not connected to the main power grid. The division operates an off-grid hydroelectric dam serving communities on the Lower North Shore and 23 small diesel power plants in the Magdalen Islands , in Haute-Mauricie and in Nunavik . In April 2011 the government of Quebec published a plan to encourage the adoption of electric vehicles, setting
448-409: Is by far the largest source, followed by wind (2.16%) and biomass, biogas and waste (0.75%). The remainder came from nuclear (0.19%) and thermal (0.12%) generation. Emissions of carbon dioxide (1,130 tonnes/TWh), sulfur dioxide (4 tonnes/TWh) and nitrogen oxides (10 tonnes/TWh) were between 49 and 238 times lower than the industry average in northeastern North America. Imported electricity bought on
504-413: Is often seen by Quebecers as a national success story and a source of pride. This could explain why various privatization proposals in the past have received little public attention. The liberal government has repeatedly stated that Hydro-Québec is not for sale. Like many other economists, Yvan Allaire, from Montreal's Hautes études commerciales business school, advocate increased electricity rates as
560-590: Is one of these. The heir to the Couture wheel motor is now marketed by TM4 Electrodynamic Systems , a spin-off established in 1998 that has made deals with France's Dassault and Heuliez to develop an electric car, the Cleanova , of which prototypes were built in 2006. Hydro-Québec announced in early 2009 at the Montreal International Auto Show that its engine had been chosen by Tata Motors to equip
616-505: The 2008 election campaign . A Léger Marketing poll conducted in November 2008 found that a majority of Quebec respondents (53%) were opposed to his proposal to sell 7.5% of the company's equity to Quebec citizens and businesses, while 38% were in favour. Commenting on the issue on Guy A. Lepage 's talk show , former PQ Premier Jacques Parizeau estimated that such an idea would be quite unpopular in public opinion, adding that Hydro-Québec
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#1732884690796672-867: The Agreement Respecting a New Relationship Between the Cree Nation and the Government of Quebec between the Grand Council of the Crees and the Quebec government made possible the development of the Eastmain Reservoir . The Eastmain-1-A and Sarcelle powerhouses and Rupert River diversion project were completed for $ 5,000 million CAD. This will provide water power to the turbines at Eastmain-1 , Eastmain-1-A and Sarcelle powerhouses and will provide increased flow at
728-553: The Eastern Interconnection . Although Quebec uses the same 60 hertz frequency as the rest of North America, its grid does not use the same phase as surrounding networks. TransÉnergie mainly relies on back to back HVDC converters to export or import electricity from other jurisdictions. This feature of the Quebec network allowed Hydro-Québec to remain unscathed during the Northeast Blackout of August 14, 2003 , with
784-533: The James Bay Project . Today, with 63 hydroelectric power stations , the combined output capacity is 37,370 megawatts. Extra power is exported from the province and Hydro-Québec supplies 10 per cent of New England 's power requirements. The company logo, a stylized "Q" fashioned out of a circle and a lightning bolt, was designed by Montreal -based design agency Gagnon/Valkus in 1960. In 2018, it paid CA$ 2.39 billion in dividends to its sole shareholder ,
840-573: The Montreal area. Major projects included: Between 1944 and 1962, Hydro-Québec's installed capacity increased from 616 to 3,661 MW while lowering residential power rates by half in the Montreal area. Duplessis's conservative reign, now known as the Grande Noirceur , ended when he died in office in 1959. The subsequent election of the Quebec Liberal Party , led by Jean Lesage , marked
896-738: 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
952-659: The Québec interconnection of the North American Electric Reliability Corporation system, and is part of the Northeast Power Coordinating Council (NPCC). TransÉnergie manages the flow of energy on the Quebec network and ensures non-discriminatory access to all participants involved in the wholesale market. The non-discriminatory access policy allows a company such as Nalcor to sell some of its share of power from Churchill Falls on
1008-469: The conservative think tank The Montreal Economic Institute —have often raised the issue, claiming that the company could be better managed by the private sector and that the proceeds from a sale would lower public debt . Without going as far as Boyer and Garcia, Mario Dumont , the head of the Action démocratique du Québec , briefly discussed the possibility of selling a minority stake of Hydro-Québec during
1064-524: The generation , transmission , distribution and construction. In 2017, production division generated 1.9B $ of net income (68.4%), transmission division 0.55B$ (19.4%), distribution division 0.33B $ (11.7%), and construction division did not generate any income. Hydro-Quebec redistributes all profits back to the government. In 2017, the crown corporation contributed $ 4 billion to the Quebec government by means of net income ($ 2.8B), royalties ($ 0.7B), public utilities tax ($ 0.3B) and debt securities ($ 0.2B). In
1120-400: The 165-TWh heritage pool provided by Hydro-Québec Production at 2.79¢/ kWh . The division usually purchases additional power by entering into long-term contracts after a public call for tenders. For shorter term needs, it also buys power from the neighboring systems at market prices. As a last resort, Hydro-Québec Production can also provide short-term relief. Supply contracts above and beyond
1176-451: The 46 rural coops accepted Hydro-Québec's 1963 buyout offer, except Saint-Jean-Baptiste-de-Rouville which still exists. In 1964, the Province of British Columbia provided the Province of Quebec with a $ 100 million loan. $ 60 million from that loan went to Hydro-Québec. The loan faced controversy in the Quebec legislature. Major projects during this period included: Because of the economic climate, demand for electricity dropped significantly in
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#17328846907961232-499: 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
1288-649: The Boston area. Phase II of the James Bay Project started in 1987 and took nine years to complete. Construction of the Denis-Perron Dam began in 1994. Like its counterparts in the North American utility industry, Hydro-Québec was reorganized in the late 1990s to comply with electricity deregulation in the United States. The transmission division, TransÉnergie , was the first to be spun off in 1997, in response to
1344-474: 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
1400-488: 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
1456-541: 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
1512-519: 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
1568-506: The Government of Quebec. Its residential power rates are among the lowest in North America. In Quebec , advocates for the creation of a public hydroelectric utility protested against high costs, poor rural electrification , and the lack of French speakers in management positions in hydroelectricity companies. In 1944, Montreal Light, Heat & Power company was nationalised, along with its subsidiary, Beauharnois Power, and Hydro-Québec
1624-448: The U.S. Federal Energy Regulatory Commission 's publication of Order 888. In the same year, the U.S. Federal Energy Regulatory Commission granted Hydro-Québec a licence to sell wholesale electricity at market prices, enabling Hydro-Québec to expand its market. Hydro-Québec also acquired a substantial share of Noverco , controller of natural gas distributor Gaz Métro , to participate in that market in northeastern North America. In 2002
1680-475: The United States. TransÉnergie's high voltage network stretches over 33,630 km (20,900 mi), including 11,422 km (7,097 mi) of 765 and 735 kV lines , and a network of 514 substations. It is connected to neighbouring Canadian provinces and the United States by 17 ties, with a maximum reception capacity of 10,850 MW and a maximum transmission capacity of 7,994 MW. The TransÉnergie's network operates asynchronously from that of its neighbours on
1736-716: The beginning of the Quiet Revolution , a period of reform and modernization. In 1962, the US government lent Quebec $ 300 million. The funds were used to acquire independent power companies. The new government gave Hydro-Québec an exclusive mandate to develop new sites. In 1963 the government authorized it to acquire private electricity distributors, including the Gatineau Power Company and the Shawinigan Water & Power Company Hydro-Québec achieved province-wide scope. All of
Reference Re Upper Churchill Water Rights Reversion Act (Nfld) - Misplaced Pages Continue
1792-464: The bulk of electricity generated and sold by the company. Non-hydro plants included the baseload 675-MW gross Gentilly nuclear generating station , a CANDU-design reactor which was permanently shut down on December 28, 2012 the 660-MW Tracy Thermal Generating Station , a heavy fuel oil-fired plant shutdown in March 2011 and two gas turbine peaker plants , for a total installed capacity of 36,971 MW in 2011. Hydro-Québec's average generation cost
1848-538: The company plans to build a new 1200-MW direct current link between the Des Cantons substation at Windsor, Quebec in Quebec's Eastern Townships and Deerfield, New Hampshire , with an HVDC converter terminal built at Franklin, New Hampshire . The US segment of the US$ 1.1 billion line, would be built by Northern Pass Transmission LLC , a partnership between Northeast Utilities (75%) and NSTAR (25%). In order to go ahead,
1904-403: The development of our natural resources with the complicity of local vultures". Left-wing academics, such as UQAM 's Léo-Paul Lauzon and Gabriel Sainte-Marie, have claimed that privatization would be done at the expense of residential customers, who would pay much higher rates. They say that privatization would also be a betrayal of the social pact between the people and its government, and that
1960-412: The early 1980s, which led to structural changes at Hydro-Québec. It became a joint stock company whose sole shareholder is Government of Québec , to which it pays an annual dividend. It was also given the mandate to export power and to work in any energy-related field. In 1986 the Quebec – New England Transmission began bringing power from the James Bay Project 1,100 kilometers (700 miles) south to
2016-455: The effects of the large-scale deployment of electric vehicles on the power grid . Projects focus on technologies to increase range , improve performance in cold weather and reduce charging time . Hydro-Québec has been criticized for not having taken advantage of some of its innovations. An electric wheel motor concept that struck a chord with Quebecers, first prototyped in 1994 by Pierre Couture, an engineer and physicist working at IREQ,
2072-688: The exception of 5 hydro plants on the Ottawa River radially connected to the Ontario grid at the time. A new 1250-MW back to back HVDC tie has been commissioned at the Outaouais substation, in L'Ange-Gardien , near the Ontario border. The new interconnection has been online since 2009 and the 315 kV line is fully operational since 2010. One drawback of the TransÉnergie network involves the long distances separating
2128-515: The existing La Grande-1 generating station as well as Robert-Bourassa and the La Grande-2-A generator stations. Output will be 918 MW. Other stations commissioned since 1997 are: In 1988, all of Quebec and parts of New England and New Brunswick lost power because of an equipment failure at a substation on the North Shore . The March 1989 geomagnetic storm tripped circuit breakers on
2184-464: The export of power to portions of the Northeast United States . More than 40 percent of Canada ’s water resources are in Quebec and Hydro-Québec is the fourth largest hydropower producer in the world. It was established as a Crown corporation by the government of Quebec in 1944 from the expropriation of private firms. This was followed by massive investment in hydro-electric projects like
2240-616: The generation sites and the main consumer markets. For instance, the Radisson substation links the James Bay project plants to the Nicolet station near Sainte-Eulalie , south of the Saint Lawrence, over 1,200 kilometres (750 mi) away. In 2011, TransÉnergie invested C$ 1.3 billion in capital expenditures, including C$ 460 million to expand its network. In addition to the new tie with Ontario,
2296-516: The heritage pool must be approved by the Régie de l'énergie du Québec and their costs are passed on to customers. The division signed one natural gas cogeneration agreement for 507 MW in 2003, three forest biomass deals (47.5 MW) in 2004 and 2005, and ten contracts for wind power (2,994 MW) in 2005 and 2008, all with private sector producers. It also signed two flexible contracts with Hydro-Québec Production (600 MW) in 2002. Hydro-Québec Distribution
Reference Re Upper Churchill Water Rights Reversion Act (Nfld) - Misplaced Pages Continue
2352-422: The markets account for most of these emissions. Hydro-Québec's expertise at building and operating a very high voltage electrical grid spreading over long distances has long been recognized in the electrical industry. TransÉnergie, Hydro-Québec's transmission division, operates the largest electricity transmission network in North America. It acts as the independent system operator and reliability coordinator for
2408-584: The open market in the State of New York using TransÉnergie's network, upon payment of a transmission fee. In recent years, TransÉnergie's Contrôle des mouvements d'énergie (CMÉ) unit has been acting as the reliability coordinator of the bulk electricity network for Quebec as a whole, under a bilateral agreement between the Régie de l'énergie du Québec and the Federal Energy Regulatory Commission of
2464-460: The project must receive regulatory approval in Quebec and the United States. The proposed transmission line could be in operation in 2015. According to Jim Robb, a senior executive from Northeast Utilities, New England could meet one third of its Regional Greenhouse Gas Initiative commitments with the hydropower coming through this new power line alone. Hydro-Québec Distribution is in charge of retail sales to most customers in Quebec. It operates
2520-577: The province would be short-selling itself by divesting of a choice asset for a minimal short term gain. Hydro-Québec sources of energy supply (2013) On December 31, 2013, Hydro-Québec Production owned and operated 61 hydro plants —including 12 of over 1,000 MW capacity — with 26 major reservoirs. These facilities are located in 13 of Quebec's 430 watersheds , including the Saint Lawrence , Betsiamites , La Grande , Manicouagan , Ottawa , Outardes , and Saint-Maurice rivers. These plants provide
2576-452: 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
2632-560: The research centre is located in Varennes , a suburb on the South Shore of Montreal . IREQ operates on an annual research budget of approximately C$ 100 million and specializes in the areas of high voltage, mechanics and thermomechanics, network simulations and calibration. Research conducted by scientists and engineers at IREQ has helped to extend the life of dams, improve water turbine performance, automate network management and increase
2688-495: The terms of the social pact of 1944. The government issued itself 43,741,090 shares worth C$ 100 each, and the amended statute stated that Hydro-Québec would now pay up to 75% of its net earnings in dividends. This amendment to the Hydro-Québec Act started an episodic debate on whether Hydro-Québec should be fully or partially privatized. In recent years, economist Marcel Boyer and businessman Claude Garcia—both associated with
2744-684: The transmission capacity of high voltage power lines. Another research centre, the Laboratoire des technologies de l'énergie (LTE) in Shawinigan, was opened in 1988 to adapt and develop new products while helping industrial customers improve their energy efficiency . In the last 20 years, the institute has also conducted research and development work towards the electrification of ground transportation . Current projects include battery materials, including innovative work on lithium iron phosphate and nano-titanate, improved electric drive trains and
2800-509: The transmission network causing a nine-hour Quebec-wide blackout. In the North American ice storm of 1998 , five days of freezing rain collapsed 600 kilometres (370 mi) of high voltage power lines and over 3,000 kilometres (1,900 mi) of medium and low voltage distribution lines in southern Quebec. Up to 1.4 million customers were without power for up to five weeks. Hydro-Québec has created separate business units dealing with
2856-528: 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. Hydro-Qu%C3%A9bec Hydro-Québec is a Canadian Crown corporation public utility headquartered in Montreal , Quebec. It manages the generation , transmission and distribution of electricity in Quebec, as well as
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#17328846907962912-495: The year 2000 with the adoption of Bill 116, which amended the Act respecting the Régie de l'énergie , to enact the functional separation of Hydro-Québec's various business units. Legislation passed in 2000 commits the generation division, Hydro-Québec Production, to provide the distribution division, Hydro-Québec Distribution, a yearly heritage pool of up to 165 TWh of energy plus ancillary services—including an extra 13.9 TWh for losses and
2968-732: Was 2.11 cents per kWh in 2011. The company also purchases the bulk of the output of the 5,428-MW Churchill Falls generating station in Labrador, under a long-term contract expiring in 2041. In 2009, Hydro-Québec bought the 60% stake owned by AbitibiBowater in the McCormick plant (335 MW), located at the mouth of the Manicouagan River near Baie-Comeau , for C$ 616 million. In 2013, the energy sold by Hydro-Québec to its grid-connected customers in Quebec and exported to neighboring markets came almost exclusively from renewable sources. Hydro (96.78%)
3024-515: Was created to manage the companies. Quebec Premier Adélard Godbout adopted a policy of investing 10 million dollars per year in rural electrification. However, in 1944 the government changed, and the new premier Maurice Duplessis was opposed to any form of government intervention in the economy. Local cooperatives were created to bring power to rural areas. Duplessis remained in power until 1960, and during that time there were no further nationalisations of companies, and Hydro-Québec mostly served
3080-605: Was installed in 2013. As of 2019, The Electric Circuit offers 2,389 public charging stations in Quebec and eastern Ontario . Usage is also compatible with the FLO and New Brunswick E-charge network adaptors. Hydro-Québec has made significant investments in research and development over the past 40 years. In addition to funding university research, the company is the only electric utility in North America to operate its own large-scale research institute, L' Institut de recherche d'Hydro-Québec (IREQ). Established by Lionel Boulet in 1967,
3136-598: 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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