Williams eyes U.S. in Quebec battle

Newfoundland and Labrador Premier Danny Williams says he will take his latest battle with Quebec over hydroelectric power to the United States and intensifyenergytalks with possible Maritime partners.

Williams was outraged Wednesday when Quebec's energy regulator turned down Newfoundland and Labrador's complaint that it was being treated unfairly by Hydro-Qubec in its attempt to obtain access to the Quebec grid for the gigantic Lower Churchill project.

The Rgie de l'nergie dismissed a complaint of fair dealing from Nalcor, Newfoundland and Labrador's Crown-owned energy corporation.

Williams said his attentionwill shift south of the border, where theU.S. Federal Energy Regulatory Commission (FERC)licenses Quebec to sell power in the United States. FERC requires anyoneselling in the American marketplace to also provide open transmission, andWilliams says Quebec is flouting that rule.

"[Quebec] is not following the rules that they are forced to follow in the United States of America," Williams told the legislature.

"So they are doing [that on] one side of the border and shafting Newfoundland and Labrador on the other side of the border."

Hydro-Qubec, meanwhile, has welcomed the regulator's decision.

"We will not comment any further as this decision really confirms that Hydro-Qubec constantly respects the energy market rules that are based on the open and non-discriminatory access to transmission," spokeswoman Ariane Conor told CBC News.

Newfoundland and Labrador is planning an appeal of the regulator's decision, although Williams said going back to the regulator itself is "obviously a dead-end street." He said court challenges are likely.

As well, Williams said, Newfoundland and Labrador will continue talks with officials in other Atlantic provinces about an alternate route to bring Lower Churchill power to customers.

"We have the Maritime route, and that is a route that we have been diligently proceeding with," said Williams, adding that his officials have been negotiating with Emera, the holding company that owns Nova Scotia Power.

"As [soon] as next week, we will be having a discussion with the Atlantic premiers, and that of course had been set up prior to this Rgie hearing," Williams said in an interview with CBC News.