The Province of Ontario and the predecessor in title of Boise Cascade Canada entered into an agreement in 1905 to develop hydro-electric power on the Rainy River.
The agreement required the company to supply the Town of Fort Frances with electrical power at a rate not exceeding $14 per horsepower per annum.
The agreement created a reserve of 4,000 horsepower for use on the Canadian side.
The Town's energy consumption eventually exceeded the 4,000 horsepower reserve.
The Supreme Court of Canada held that the company's obligation to supply power to the Town at the fixed price of $14 per horsepower per annum was limited to the 4,000 horsepower reserved under the agreement.
