Hydro-Quebec has won a major legal victory to allow its Maine interconnection line project to go ahead to export electricity to Massachusetts.
The Maine Superior Court has delivered a verdict in favor of the state-owned company and its American partner, NECEC. The jurors concluded Thursday morning that the promoters of the project, which had been rejected by 59% by a referendum in 2021, had not advanced the work schedule to create an acquired right. The decision was made unanimously by the nine jurors.
In August, the Maine Supreme Court ruled that the referendum was unconstitutional. However, it had referred the case to the Superior Court of Maine to determine whether the American partners of Hydro-Québec had all the permits required before the referendum.
“We are satisfied with this decision rendered by the jury,” commented 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 bring electricity to Massachusetts was rejected by the citizens of Maine in a referendum in November 2021. 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 is still too early to confirm if and when work will be able to resume, replies Ms. St-Laurent. “It is not impossible that the opponents appeal this decision. »
Opponents have a window of around 30 days to appeal, ie 21 days after the decision is registered at the registry, she explains.
Other steps are in progress before the courts, but the case of Thursday was the most important “in the range of opponents”, adds Ms. St-Laurent. She gives an example of steps taken to have a permit granted by the Maine Department of Environmental Protection invalidated. “The opponents had challenged and appealed the authorization of the permit. It was rejected. This decision to dismiss this appeal is being appealed again. »
Significant revenues for Hydro-Québec
If the project were to be abandoned, Hydro-Québec would have suffered significant financial costs in addition to losing a potential revenue of $10 billion over 20 years.
The state-owned company estimated that it would have to take a charge of nearly $530 million if the project was canceled, according to its annual report. To this would be added the amounts that it should have paid “under agreements”, which totaled $ 160 million as of December 31, 2022.
NECEC, for its part, had already spent nearly US$450 million, representing 43% of the anticipated costs, according to court filings.
The power sales contract with Massachusetts would reduce greenhouse gases by 3 million metric tons, the equivalent of taking 700,000 cars off the road.