U.S. wind power firm awarded $28M after NAFTA challenge

A trade tribunal has awarded a U.S. firm about $28 million following Ontario's decision five years ago to put a moratorium on offshorewind power development.

The company,WindstreamEnergy LLC, said it has been awarded damages of more than $25.1 million, plus $2.9 million in legal costs.

Windstreamsigned a deal with the Ontario Power Authority back in 2010to build a 130-turbine, 300 MW offshore wind power project in theWolfeIsland Shoals of Lake Ontario, near Kingston.

However, the Ontario government, in a surprise move,said in February 2011 that it was scrapping all offshore wind power projectsuntil it hadmore scientific research intotheir impact on people's health.

Windstreammade a claim under the rules of the North American Free Trade Agreement, saying Canada violated its obligations under theNAFTA, and sought about $568 million in damages. The case was made against Canada, not the province of Ontario,because matters underNAFTAare a federal responsibility.

The case was heard in February before the Permanent Court of Arbitration, which is based in theNetherlands.

In a release issued Thursday,Windstreamsaid the tribunal declared that itscontract is formally "in force" and has not been unilaterally terminated by the provincial government.

"This award is an appropriate first step at remedying the challenges we have faced," David Mars, director ofWindstreamEnergy, in a release. "We look forward to working with the government of Ontario to build this project in accordance with the contract."

The tribunal's decision has not been made public yet.

"This is another outrageous example of taxpayers having to fund foreign corporations who do not respect the democratic rights of governments to regulate in the interests of their citizens," Maude Barlow, national chairperson of the Council of Canadians, said in a release.

"This challenge should have gone to a Canadian court and not to an arbitration panel that favours foreign investors over domestic companies," Barlow said.

The governments of Canada and Ontario have both said they are considering their next moves.