Background
By an Act of the province of Newfoundland, the Churchill Falls (Labrador) Corporation (CFLCo) developed hydro-electric generators at the Churchill Falls, in Labrador. In 1969, the company, controlled by the British Newfoundland Development Corporation (BRINCO) entered an agreement with Hydro-Québec, a public utility owned by the government of Quebec, to sell a large majority of the power generated by the Falls at a low fixed rate for the next 65 years.
After buying out BRINCO's shares in 1974, the government of Newfoundland began exploring ways to get a greater portion of the power generated from the Falls. In 1980, the legislature passed the Upper Churchill Water Rights Reversion Act that reverted ownership of the Falls to the provincial government and repealed the Act that granted the land to the CF(L)Co and expropriated the company's assets, including Hydro-Québec's participation in the joint venture.
The province submitted a reference to the Newfoundland Court of Appeal which found it intra vires (within the power of) the province.
Read more about this topic: Re Upper Churchill Water Rights Reversion Act
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