An Innu community is suing Hydro Quebec for 22 billion

An Innu community is suing Hydro-Québec for $2.2 billion

The Innus of Uashat mak Mani-utenam (UMM) ruled that the Churchills Falls hydroelectric power plant had “devastating effects” on their ancestral lands and initiated a $2.2 billion lawsuit against Hydro-Québec and a lawsuit in US$200 million against Churchill Falls (Labrador) Corporation Limited ( CF(L)Co).

Begun in the late 1960s for commissioning in 1971, the Labrador facility was “built in UMM’s Innu ancestral territory without the approval or even the slightest consultation of UMM’s Innu,” we can say in an originally filed application read before the Superior Court of Quebec last Friday.

The construction of the 5428.5 MW dam has caused several disturbances on the territory, including the flooding of large areas, the construction of more than 1,000 kilometers of power lines or the construction of roads and warehouses, the plaintiffs pointed out that its development and Operation “are illegal and unconstitutional and constitute a continued violation of the defendants’ ancestral rights.”

An aerial view of the Churchill Falls, Labrador community about 150 miles from the Quebec border.

Archival Photos, The Canadian Press

An aerial view of the Churchill Falls, Labrador community about 150 miles from the Quebec border.

“The Churchill Falls mega-project has had a devastating impact on our people. Hydro-Québec and CF(L)Co have illegally appropriated our lands to capitalize on their energy wealth for decades. To be a responsible company, Hydro-Québec must right its wrongs and demonstrate its respect for our country, our people and our rights,” responded Uashat mak Mani-utenam Innu chief Mike Mckenzie.

Over $2.4 billion in damages

Although Hydro-Québec owns only 34.2% of the plant, the Innu believe it would never have seen the light of day without the support of the state-owned company, which buys most of the electricity produced by the dam.

As a result, the Innus are seeking US$2 billion in damages from UMM “for prior and contingent damages,” in addition to an amount of US$200 million in exemplary and punitive damages.

In addition, the community is seeking $200 million in compensation from CF(L)Co, the company that built and operates the facility.

The interior of Churchill Falls station.  The power generation facilities are underground.

Archival Photos, The Canadian Press

The interior of Churchill Falls station. The power generation facilities are underground.

“An annual compensation of 12.5% ​​of 15% of the annual profit of the HQ from the judgment to be issued” was also demanded as compensation.

Crown Corporation declined to comment on the lawsuit as it is in court.

“However, we believe that ongoing dialogue with the community will allow us to build a relationship of trust,” said a spokesperson, Francis Labbé, emphasizing that “Hydro-Québec strives to create harmonious and mutually satisfying relationships to develop and sustain Aboriginal communities related to activities related to their hydroelectric power plants”

This lawsuit comes as Quebec already has to review the contract between Hydro-Quebec and the plant, which expires in 2041. Currently, Hydro-Quebec pays barely 0.2 cents per kWh produced at the plant. In comparison, Quebecers pay 6.139 cents for each kWh consumed, an amount 30 times higher.

However, the Innu believe that no renegotiation of the treaty can take place without their approval.

“Any agreement or negotiation regarding the future of the Churchill Falls Megaproject facilities must be made with our participation and consent. Without it, Hydro-Québec will be unable to build a relationship of trust with our nation,” said Chief Mckenzie.

Recall that UMM’s Innus won another round against Hydro-Québec last December when the Supreme Court ruled they were not adequately consulted on building a power line to supply the Alouette aluminum smelter in Sept-Iles had been.