Massachusetts Utilities Sue Hydro-Quebec Over $40 Million in Unpaid Power
Eversource, National Grid, and Unitil have filed federal lawsuits against Hydro-Quebec, claiming the Canadian utility breached its contract by cutting power during a cold snap while continuing to bill for energy.
Massachusetts utilities are suing Hydro-Quebec for $40 million in replacement energy costs. The state’s three major electric providers allege that the Canadian company shut off power during a severe cold snap. This outage occurred just eight days after the new transmission line began operating.
Hydro-Quebec filed a counter-suit the same day, demanding $50 million in unpaid invoices. The two lawsuits were filed in US District Court in Boston. The dispute centers on a 12-day period in late January and early February when the line went dark. According to GN markets/energy (en-US), the utilities claim they had to buy expensive backup power to keep the grid stable.
Utilities Claim Breach of Contract
The lawsuit states that Hydro-Quebec violated its agreement by interrupting service. The utilities argue the shutdown was discriminatory and non-transparent. They claim the Canadian company continued to charge for power it did not deliver. This forced New England to rely on higher-cost and higher-emitting energy sources.
Hydro-Quebec Cites Force Majeure Defense
Hydro-Quebec argues that extreme weather conditions constituted force majeure. The company states that emergency reliability curtailments issued by grid operators required the power cut. It denies liability for breach of contract under these circumstances. The utility maintains that events beyond its control justify withholding energy exports.
Project Viability Faces Legal Scrutiny
The New England Clean Energy Connect project was designed to supply 20 percent of Massachusetts electricity. It runs through 145 miles of rural wooded areas in Maine. The line had previously won a high-stakes court fight against a ballot measure. The project was approved by regulators in 2018 as part of a 20-year power purchase agreement.
Massachusetts electric rates are currently double the national average. Governor Maura Healey hailed the project's launch as a milestone. The legal battle now threatens to limit the state’s energy options. This comes as offshore wind projects face regulatory hurdles and affordability concerns rise.
