Hydro-Qubec lawsuit a 'desperate move,' Dunderdale says

Newfoundland and Labrador Premier Kathy Dunderdale is slamming Hydro-Qubec's lawsuit over the 1969 Churchill Falls power deal.

"I think that I would characterize this as a desperate move by a company thats been trying, one way or another, to thwart development on the Lower Churchill for a number of years unless it was clearly in the best interests of the people of Quebec," Dunderdale told reporters in St. Johns Tuesday.

A day earlier, Hydro-Qubecannounced it is going to courtover its rights under the original Churchill Falls power deal.

• Hydro-Qubec suing over Churchill Falls contract rights

But Dunderdale said she is confident the province and its energy corporation, Nalcor, will prevail.

The premier says legal advice shows that Newfoundland and Labrador is not in a vulnerable position as it works to developthe $7.7-billionMuskrat Falls project further down the Churchill River.

'Were looking at the claim, the case that they have put forward, and were highly confident that it wouldnt have a significant impact.' Premier Kathy Dunderdale

"Theres a nebulous line, without a doubt, between the renewal contract of the Upper Churchill contract and the development of the Lower Churchill, but it is nebulous," Dunderdale said.

"Were looking at the claim, the case that they have put forward, and were highly confident that it wouldnt have a significant impact. There are ways to mitigate."

While Hydro-Qubec says recent positions taken by CF(L)Co, which operates the Churchill Falls facility, are "ill-founded," Dunderdale said there are "numerous" legal opinions backing them up.

"The agenda wont be set by Quebec in terms of how we do our work, how we develop our resources, and how we access markets," she said.