Churchill Falls Corp. seeks negotiation on Upper Churchill contract

Churchill Falls Corp. has asked Hydro-Quebec to enter into negotiations regarding the Upper Churchill power contract pricing.

Ed Martin, Churchill Falls Corp. president and president and chief executive officer of Nalcor Energy, said he has asked Hydro-Quebec to renegotiate pricing terms for the remainder of the 1969 contract to “establish a fair and equitable return to both (Churchill Falls Corporation) and Hydro-Quebec for the future.”

The purchase price under the existing contract is one-quarter of one cent per KWh and the renewal contract fixes the purchase price at one-fifth of one cent for the 25 year period beginning in 2016, according to Nalcor Energy.

That means Upper Churchill power will be sold to Hydro-Quebec at a fraction of its value for the remaining 32 years of the contract, according to Nalcor Energy.

Churchill Falls Corp. has asked Hydro-Quebec to reply to its request to commence negotiations by Jan. 15, 2010.

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