Abstract
The contract negotiation that led to the 1969 agreement between Newfoundland and Labrador, and Quebec, is systemically analyzed within the framework of Graph Model for Conflict Resolution. The Great Canadian Hydroelectric Power Conflict has been ongoing since 1963 and shows no signs of ending. In this dispute, the Province of Quebec has the right to buy almost all of the power generated from the Upper Churchill Falls, which is located in the Labrador territory in Newfoundland and Labrador, at a very low price. Originally, the contract was signed by Churchill Falls Labrador Corporation to secure finances for the Upper Churchill Falls development. The unpopularity of the contract led to several unsuccessful attempts by the Newfoundland and Labrador Government to escape its provisions. Newfoundland and Labrador is currently negotiating to develop the Lower Churchill Project and seeking to avoid the mistakes of the first contract. Furthermore, the automatic renewal clause of the original contract is expected to cause another round of conflict in 2016. The analysis shows that, given the circumstances in which the agreement was signed, the outcome was almost inevitable. A third party intervener rule could have remediated the damage caused by the conflict.
•The Canadian Power Conflict is systematically explained and investigated according to how it evolved over time since the 1960s.•We formally model and analyze the negotiations that led to the great hydroelectric power conflict.•We explain how the conflict started and what could have been done to avoid it.•We explain how the conflict can be resolved and provide other strategic insights.