What did Hydro-Quebec want? What did we agree to?

I'm sure we can all agree on one thing - Hydro-Quebec does not give up a thing unless something greater of value is there for it.

In 1999 when CFLCo was threatened with going broke - our province sought ways to generate more revenue into the Corporation. This of course was another disastrous consequence of the Upper Churchill deal wherein under certain circumstances HQ could invest money in CFLCo in return for common shares.

It is of course arguable that the Government of Newfoundland and Labrador could keep CFLCo afloat with tax dollars - thus avoiding a complete HQ takeover of the Upper Churchill - however Brian and Deano went for a "new" deal.

The Guaranteed Winter Availability Contract (GWAC) was born and with that "new" rights for Hydro-Quebec.

The way CFLCo functioned was a 2/3 (NL) 1/3 (HQ) ownership/management situation wherein we had majority shareholder rights. The new agreement changed that to requiring an approval from HQ on all important business/contract/management issues.

Let's get one thing clear - HQ did not have to accept GWAC - they had rights to power anyway and had them cheap. The GWAC gave us the better deal on the power sales at market value. Therefore it is certain that HQ got something out of the deal.

Despite HQ's winning protest and position that the Upper Churchill Contract could not be changed - leaving us the poor owners of an extremely lucrative resource; HQ got a change and it was definitely in their favour.

So what then was HQ after? Why did they "give" us a deal for power at market value?

Even the current government is out touting HQ as the devil - opposed to Newfoundland and Labrador. So in that case what did we give up in 1999?

Here's the wording in part;

Part of the Shareholders Agreement among NL Hydro, Hydro-Quebec, and CFLCo June 18th 1999

Article 3 Board of Directors

3.4 Special Majority Decisions of the Board of Directors

The following decisions will require the approval of a majority of the directors on the Board of Directors, including at least one director nominated by NL Hydro and one director nominated by Hydro-Quebec on the Board of Directors:

3.4.6

...the entering into, amendment or termination of any Material Contract to which CFLCo or any Subsidiary of CFLCo is a party or to which CFLCo or any Subsidiary of CFLCo may become a party, unless such entering into, amendment or termination has been previously approved in a budget approved under Section 3.4.2 or 3.4.3;

Material Contract defined: "Material Contract" means (i) any contract involving a monetary commitment of CFLCo or having a value to CFLCo of $10 million or more in the aggregate and (ii) any contract which restricts CFLCo from carrying on its Business, including the contracts listed on Schedule E;

Business defined: "Business" means the business of CFLCo which shall be limited to the following purposes and objects:
(a) to produce or otherwise acquire and to transmit and to sell electricity;
(b) to harness or otherwise make use of water for the purpose of producing hydroelectric and hydraulic power and for any other purpose;

Our politicians need to all come clean. Why did HQ want the change above? - and now that they have it - what did they want it for?