N.L. fights for access to Quebec hydro lines

Quebec's energy board heard final arguments Thursday in a high-stakes case that may have repercussions for a proposed Newfoundland and Labrador hydroelectric energy project.

The board will decide whether Hydro-Qubec is providing fair access to its transmission lines.

Nalcor, Newfoundland and Labrador's provincial energy company, says it needs access to the system to move power from its $6.5-billion Lower Churchill project in central Labrador to markets across North America.

The U.S. Federal Energy Regulatory Commission, which licenses Quebec to sell power in the United States, requires that Hydro-Qubec provide fair and open access to available space on its lines.

Nalcor alleges that Hydro-Qubec is not providing open access to its lines.

Hydro-Qubecargues there is no available spaceand it would cost$3 billion to upgradethe system to handle the Lower Churchill power.

Nalcor officials argue the questions raised at the hearings have significance beyond the two provinces.

"This is not confined to being just a Newfoundland-Quebec issue," Nalcor president Ed Martin said in an interview. "Really what we have here is a northeastern North America situation. We're talking open access to competitive electricity markets. We're talking northern U.S., Ontario and the Atlantic provinces."

Martin argued Quebec should be enabling thetransmission of power from Newfoundland and Labrador.

"We haven't got that situation here," he said. "We're being slowed down, blocked and being held back."

The U.S. regulatory commission is also interested in the access issue. If it believesQuebec is not providing open access to its lines, it could revoke the province's licence to sell energy in the U.S.

Martin said it's difficult to predict how long it will take the Quebec energy board to make a decision. Lawyerssuggested a decision may come in March or April, he said.

If Nalcor's arguments aren't accepted, Newfoundland and Labrador may have to build an expensive alternative transmission route for its power.