Hydro-Québec has won an important legal victory to allow its proposed interconnection line in Maine to go ahead and export electricity to Massachusetts.
The Maine Superior Court delivered a verdict in favour of the utility and its American partner, NECEC. Jurors found Thursday morning that the developers of the project, which was rejected by 59 per cent in a 2021 referendum, did not move up the construction schedule to create a grandfathered right. The decision was made unanimously by the nine jurors.
In August, the Maine Supreme Court had ruled that the referendum was unconstitutional. However, it sent the case back to the Maine Superior Court to determine whether Hydro-Québec's American partners had all the required permits before the referendum.
"We are pleased with the jury's decision," said Hydro-Québec spokesperson Lynn St-Laurent in an interview. "This is an important victory for the transition to clean energy."
The 336-kilometre project that would cross Quebec and Maine to deliver electricity to Massachusetts was rejected by Maine citizens in a November 2021 referendum. Work was suspended a few weeks later. The battle between Hydro-Québec's American partners and opponents of the project continued on the legal front.
"It's still too early to confirm if and when work will resume," says St-Laurent, "but it's not impossible that the opponents will appeal the decision."
The objectors have a window of about 30 days to appeal, 21 days after the decision is registered with the registry, she explained.
There are other court cases underway, but Thursday's case was the most important "in the range of opponents," St-Laurent said. As an example, she points to efforts to invalidate a permit granted by the Maine Department of Environmental Protection. "The opponents had challenged and appealed the permit. It was denied. This decision to reject that appeal is being appealed again."
SIGNIFICANT REVENUES FOR HYDRO-QUEBEC
If the project were to be abandoned, Hydro-Québec would have incurred significant financial costs in addition to losing potential revenues of $10 billion over 20 years.
The Crown corporation estimated that it would have to take a charge of nearly $530 million if the project were cancelled, according to its annual report. To this would be added amounts it would have had to pay 'under agreements', which totalled $160 million as of Dec. 31, 2022.
NECEC, for its part, had already spent nearly US$450 million, representing 43 per cent of the anticipated costs, according to court filings.
The Massachusetts power deal would reduce greenhouse gases by 3 million metric tons, the equivalent of taking 700,000 cars off the road.
- This report by The Canadian Press was first published in French on April 20, 2023
