Todd Williams

Applicants under multiple long-term power purchase agreements sought declarations that the respondent miscalculated Total Market Cost after the 2011 global adjustment reallocation regime came into force.

The court held that the contractual definition of TMC implicitly required aggregated electricity costs to be allocated pro rata based on electricity consumption, and that the respondent's new formula improperly reflected a regulatory reallocation between customer classes rather than the underlying costs of generation and supply.

Although the court found the respondent breached the PPAs, it also held that neither the change of law clauses nor the material change provisions were triggered by the reallocation regulation.

Declaratory and consequential relief was granted requiring recalculation from January 1, 2011 and compensation with interest.

A small hydroelectric power producer sought a declaration and damages concerning the interpretation of a long‑term electricity purchase contract.

The plaintiff argued that payments after the tenth year of the agreement were required to escalate annually with inflation, while the defendant maintained that the contract fixed the tenth‑year rate as a floor and permitted annual rate determinations thereafter.

The court held the contract language was clear and contained no entitlement to an automatic inflation escalator.

Claims based on estoppel arising from the treatment of other generators were rejected.

Although the limitation period did not bar claims arising within two years before the action, the plaintiff ultimately failed to establish entitlement under the contract.