Canada-to-U.S. Hydropower Agreements Withstand NextEra’s Suit

Massachusetts officials reasonably approved contracts allowing electricity distribution companies to purchase Canadian hydroelectric power, the state’s top court court ruled Thursday in a loss for NextEra Energy Resources LLC.

The disputed purchase agreements provide for power generated by Hydro-Quebec Energy Services U.S. Inc. to be transmitted from Quebec to Maine over a 20-year term.

Hyrdo-Quebec Energy would be allowed pursuant to the PPAs to deliver energy over any transmission line after shortfalls caused by outages. The company would otherwise pay penalties or additional costs incurred by companies that have to purchase replacement energy.

NextEra Energy argued the terms of ...