Judgments

Decision Information

Decision Content

A-1057-90
Attorney General of Quebec (Appellant)
v.
National Energy Board (Respondent)
INDEXED AS: QUEBEC (ATTORNEY GENERAL) v. CANADA (NA- TIONAL ENERGY BOARD) (CA.)
Court of Appeal, Pratte, Marceau and Desjardins JJ.A.—Montréal, June 10, 11, 12, 13, 14; Ottawa, July 9, 1991.
Energy NEB granting Hydra -Québec licences to export electricity to U.S.A. on condition EARPGO complied with Hydro -Québec appealing condition Indians appealing granting of licences NEB lacking jurisdiction to impose conditions as to energy production in export licence Board did not err in considering recent statutory amendments, aimed at deregulation, which lay down less strict conditions in ruling on export applications Natural justice rules not breached Board finding former export price requirements met While no direct evidence as to cost recovery, there was evidence supporting Board's finding as to feasibility.
Environment NEB granting licences for electricity export to U.S.A. on condition EARPGO complied with Condition struck down as NEB lacking information to impose conditions as to energy production in export licence Board concerned only with environmental consequences of sending power from Canada Authorities other than NEB responsible for serious environmental questions raised by construction of electrical energy production facilities.
In September 1990, the National Energy Board granted Hydra -Québec seven licences authorizing the export, over some twenty years, of 1,450 megawatts of electricity to the United States, generating income of close to $25 billion. The licences were all subject to the same conditions which had the effect of requiring Hydro-Quebec to comply with the EARP Guidelines Order. The Attorney General of Quebec and Hydro -Québec seek to have those conditions vacated while the Grand Council of the Crees and the Cree Regional Authority object to the licences being granted at all.
Held, the principal and related appeal with respect to the conditions should be allowed and the conditions vacated. The appeals with respect to the decision granting the licences should be dismissed.
It is clear from the Board's reasons that it imposed the conditions affecting the construction of production facilities on the basis that it was bound by the EARP Guidelines Order and
that the Hydro -Québec applications were covered by that Order.
The Board does not have jurisdiction to make the granting of an export licence subject to conditions pertaining to production. The factors which may be relevant in considering an applica tion for leave to export electricity and the conditions which the Board may place on its leave cannot relate to anything but the export of electricity. As it is understood in the Act with respect to electricity, export does not cover production itself. The only question can be as to the environmental consequences of the export. Authorities other than the Board are responsible for the serious environmental questions raised by the construction of electrical energy production facilities. The conditions imposed herein cannot stand, but since they can be dissociated from the licences themselves, the quashing of the conditions does not entail quashing the decision itself.
Contrary to what was argued by the Grand Council of the Crees, the Board did not err in law by applying the provisions of amendments to the National Energy Board Act which came into effect in June 1990, before the decision was rendered but after the hearing had taken place and the applications taken under advisement. The new statutory provisions were enacted with a view to deregulation and placed less strict conditions on the exercise of the Board's discretion in considering applica tions to export electricity. The Board was bound by the new Act rather than by the provisions concerning cost recovery in force when the licence applications were made. The application of the new Act was not contrary to the rules of natural justice since the Grand Council of the Crees had complete latitude at the hearing to act on the understanding that the coming into effect of the new Act could affect the decision to be rendered. In any case, the application of the new provisions would not be a basis for reopening the hearing or holding a special additional hearing. Furthermore, even if the argument were valid, it lead nowhere since the Board had chosen to analyse the evidence in light of the old Act and decided, in accordance with its obligations, thereunder, that the Hydro -Québec applications met the traditional requirements of an export price that was just and reasonable in relation to the public interest.
Hydro -Québec had objected to openly disclosing its detailed estimate of certain costs for fear of injury in its business dealings with its neighbours. The Indians were, therefore, correct in noting that the Board had no direct evidence on which to base its conclusion that the export price would recover the appropriate share of the costs incurred in Canada. There is, however, nothing which requires the Board to decide only on direct evidence. There was evidence which, while not direct in all respects, carried a strong persuasive force in determining feasibility. The Court therefore could not dispute the Board's conclusion on that basis.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
An Act to amend the National Energy Board Act and to repeal certain enactments in consequence thereof (Bill C-23), S.C. 1990, c. 7.
Department of the Environment Act, R.S.C., 1985, c. E-10, s. 6.
Environmental Assessment and Review Process Guide lines Order, SOR/84-467.
Federal Court Rules, C.R.C., c. 663, R. 1307.
Government Organization Act, 1979, S.C. 1978-79, c. 13, s. 14.
Hydro -Québec Act, R.S.Q. 1987, c. H-5.
National Energy Board Act, R.S.C., 1985, c. N-7, ss. 2, 22, 118 (as am. by S.C. 1990, c. 7, s. 32), 119.06(2)(b) (as enacted idem, s. 34), 119.08(2) (as enacted idem), 119.09(2) (as enacted idem).
National Energy Board Part VI Regulations, C.R.C., c. 1056, ss. 6(1),(2)(z),(aa), 15(m).
CASES JUDICIALLY CONSIDERED
APPLIED:
Consumers' Ass'n (Can.) v. Ontario Hydro [No. 11, [1974] I F.C. 453; (1974), 2 N.R. 467 (C.A.).
COUNSEL:
Jean-K. Samson, Robert Monette, Alain Gingras, Jean Robitaille for Attorney Gener al of Québec.
Bernard A. Roy, Pierre Bienvenue, Jean G. Bertrand for Hydro -Québec.
Robert Mainville, James O'Reilly, Johanne Mainville for Grand Council of the Crees of Quebec and Cree Regional Authority.
Jean-Marc Aubry, René Leblanc, James Mabbutt, F. Jean Morel for National Energy Board and Attorney General of Canada.
William G. Lea for Maritime Electric Co. Ltd.
Harvey Morrison, John K. Poirier for Nova Scotia Power Corp.
SOLICITORS:
Bernard Roy & Ass., Montréal, for Attorney
General of Québec.
Ogilvy Renaud, Montréal, for Hydro -Québec.
O'Reilly, Mainville, Montréal, for Grand Council of the Crees of Quebec and Cree Regional Authority.
Deputy Attorney General of Canada for Na tional Energy Board and Attorney General of Canada.
Campbell, Lea, Michael, McConnell & Pigot, Charlottetown, for Maritime Electric Co. Ltd.
Nova Scotia Power Corp., Halifax, for Nova Scotia Power Corp.
The following is the English version of the reasons for judgment rendered by
MARCEAU J.A.: On July 28, 1989 Hydro -Qué- bec applied to the National Energy Board for leave to export a certain quantity of electricity. The purpose of its applications, made in accordance with the provisions of Part VI of the National Energy Board Act, R.S.C., 1985, c. N-7, were: first, the issuing of a licence authorizing export to the New York Power Authority of two blocks of power and energy guaranteed for a twenty-year period; second, the issuing of six licences authoriz ing the export to Vermont Joint Owners of seven blocks of power and energy guaranteed for periods ranging from five to twenty-two years.
The mission of Hydro -Québec, an agent of the Crown in right of the province created by the Hydro -Québec Act, R.S.Q. 1987, c. H-5, is to anticipate and to supply demand for energy in Quebec, and to this end it is empowered to pro duce, acquire, sell, transport and distribute energy. Hydro -Québec in fact operates a vast network in the province, consisting of production facilities and facilities for the transport and distribution of elec trical energy, the capacity of which is now over 30,000 megawatts (MW). In order to meet con stantly rising demand, Hydro -Québec has pre pared a development plan for its equipment which it expects to implement in the coming years, and this plan contemplates the sale outside of Quebec of a certain quantity of electricity produced by its facilities as a whole. The purpose of the two applications to the Board was to give effect to two agreements, negotiated and signed shortly before,
which covered a total quantity of 1,450 MW and would provide income of nearly $25 billion.
The Hydro -Québec applications gave rise to a lengthy public hearing in which a number of per sons took part and which continued until March 5, 1990. On September 27, 1990 the Board made public the decision it had taken a few days earlier and published the reasons for that decision. Sub ject to the approval of the Governor in Council approval which was in fact given soon afterwards the Board granted the seven licences requested, except that it made them all subject to the same conditions, among which were the following two, Nos. 10 and 11:
10. This licence remains valid to the extent that
(a) any production facility required by Hydro-Quebec to supply the exports authorized herein, for which construction had not yet been authorized pursuant to the evidence pre sented to the Board at the EH-3-89 hearing that ended on 5 March 1990, will have been subjected, prior to its con struction, to the appropriate environmental assessment and review procedures as well as to the applicable environmental standards and guidelines in accordance with federal govern ment laws and regulations.
(b) Hydro -Québec, following any of the environmental assessment and review procedures mentioned in subcondi- tion (a), will have filed with the Board
(i) a summary of all environmental impact assessments and reports on the conclusions and recommendations aris ing from the said assessment and review procedures;
(ii) governmental authorizations received; and
(iii) a statement of the measures that Hydro-Quebec intends to take to minimize the negative environmental impacts.
I I. The generation of thermal energy to be exported hereunder shall not contravene relevant federal environmental standards or guidelines.
The Board's decision seemed questionable to many. In October 1990 first Hydro -Québec and then the Attorney General of Quebec both applied to this Court, pursuant to section 22 of the Na tional Energy Board Act, for leave to appeal the decision with respect to these conditions 10 and 11, while the Grand Council of the Crees of Quebec and the Cree Regional Authority also took steps to object to the licences even being granted. Leave to
appeal was granted to the three parties and the first notice of appeal entered was, pursuant to the Rules of the Court [Federal Court Rules, C.R.C., c. 663], designated the principal appeal, the others related appeals.
Maritime Electric Company Limited, which had appeared before the Board, and Nova Scotia Power Corporation intervened in the appeal pursu ant to Rule 1307 of the Rules of practice of the Court, both in support of the objection by Hydro - Québec and the Attorney General of Quebec to the imposition of conditions 10 and 11.
Two observations should be made on the reasons for judgment I am about to render.
The hearing of the principal and related appeals lasted for five days and gave rise to lengthy argu ment submitted with a host of authorities. The setting out of my views and my conclusions will be nowhere near reflecting the importance and com plexity of the arguments presented. As I will explain in a moment, several of the arguments made were only made alternatively by counsel and it will not be necessary for me to consider them.
Furthermore, I will first examine the challenge to the imposition of conditions 10 and 11. The reason is not only that it originates with the appli cant to the Board, Hydro -Québec, is supported by three of the four other appellants and interveners and was argued before the other one at the hear ing, but also that by disposing of it first I feel I can simplify my analysis as a whole.
Challenge by Attorney General of Quebec and Hydro -Québec to imposition of conditions 10 and 11
It is clear from reading the introductory "whe- reases" to each of the licences' and the lengthy reasons published in support of the decision that the Board imposed conditions 10 and 11 because it felt it was bound by the Environmental Assess ment and Review Process Guidelines Order, SOR/ 84-467, adopted on June 22, 1984 on the recom mendation of the Minister of the Environment pursuant to subsection 6(2) of the Government Organization Act, 1979, S.C. 1978-79, c. 13, s. 14 2 (hereinafter the "EARP Order"), and it con sidered that the Hydro -Québec applications were covered by the EARP Order. This obvious connec tion between the imposition of the conditions and compliance with the EARP Order raises the ques tion of the application of that Order, first to the Board itself, and then to the promoter Hydro -Qué- bec as an agent of the Crown in right of the province, and even ultimately its constitutional validity. It is these problems, raised among the appellants' grounds of challenge, which required the most extensive analysis; however, as I have just said, they were only mentioned alternatively, and I will explain why.
While the connection between imposition of the disputed conditions and the EARP Order is not formally stated in the formal text of the conclu sions of the decision (a fact which the Attorney General of Canada relied on as a basis for dis sociating the validity of the conditions as such from questions of the implementation and consti tutionality of the EARP Order, a pointless effort in my opinion), the very wording of the conditions indicates that they relate to production facilities. The Board made the licences subject to conditions 10 and 11 because it felt it could, and under its legal mandate had to, be concerned about the
' Including the following two:
AND WHEREAS pursuant to the Environmental Assessment and Review Process Guidelines Order ("EARP Guidelines Order"), the Board has performed an environmental screen ing of the application by considering the evidence gathered during the above-mentioned public hearing;
AND WHEREAS the Board has determined, subject to the undertaking of appropriate environmental reviews prior to the construction of production facilities used in part to support the proposed exports, that the requirements of the EARP Guidelines Order will have been fulfilled ....
2 Now section 6 of the Department of the Environment Act, R.S.C., 1985, c. E-10.
environmental consequences that might be caused by the eventual construction of production facili ties. This explains the first question that arises, namely whether the Board's jurisdiction in fact extends to facilities for the production of goods for export, or in other words, whether the Board can make the granting of a licence to export certain goods subject to conditions pertaining to their production. Clearly, a negative answer to this question will make any question about the EARP Order academic; and I do feel that the answer should be negative.
Naturally, the Board derives its authority and jurisdiction from its enabling Act, the National Energy Board Act, which prohibits anyone from exporting electricity without leave of the Board. At the time the Hydro -Québec applications were filed, that leave necessarily took the form of a licence and certain of the factors which the Board had to take into account were expressly mentioned. Now, since the coming into effect on June 1, 1990 of Bill C-23, An Act to amend the National Energy Board Act and to repeal certain enact ments in consequence thereof, S.C. 1990, c. 7 ("Bill C-23"), the leave may consist of a permit or a licence and the criteria the Board must consider are not the same. We will see below that applying the new provisions to the Hydro -Québec applica tions then pending created a problem; however, in any case the Board's jurisdiction still is and has always been the granting of leave to export elec tricity. The factors which may be relevant in con sidering an application for leave to export electrici ty and the conditions which the Board may place on its leave clearly cannot relate to anything but the export of electricity. Section 2 of the Act defines what is meant by export (in French "exportation") in the case of electricity:
2. ...
"export" means, with reference to
(a) power, to send from Canada by a line of wire or other
conductor power produced in Canada ...
It seems clear that, as it is understood in the Act with respect to electricity, export does not cover production itself, and it is only reasonable that this
should be so. Of course, anyone wishing to export a good must produce it or arrange for it to be produced elsewhere, but when he produces it or arranges for its production elsewhere he is not exporting it, and when he is exporting it he is not producing it.
I do not think anyone would dispute for a moment that in considering an application for leave to export electricity, the Board must be concerned about the environmental consequences, since the public interest is involved. The Board's function in this respect is in any case confirmed in several enactments.' However, the only question can be as to the environmental consequences of the export, namely the consequences for the environ ment of "[sending] from Canada ... power pro duced in Canada". It might be possible to conceive of a situation in which a production facility was so much a part of export operations that it would be possible to bring the use of that facility within the Board's jurisdiction though I do not see how such a situation could arise, and I even strongly doubt whether the consequence I am assuming would follow but it is clear that there is nothing of the kind here. Some of the Hydro -Québec con struction projects will be moved up by several years to meet the needs of the export contracts, but the carrying out of these projects is not in any way connected with the exports, which will be supplied by the network itself and which only affect a small fraction of its total capacity.
It is clear that the construction of electrical energy production facilities raises serious environ mental questions which must be considered and resolved, but those questions are the responsibility of other authorities besides the Board, and those authorities have no need of the Board's support in
3 First, it should be noted that this function is based on ss. 119.06(2)(b), 119.08(2) and 119.09(2) of the National Energy Board Act (R.S.C., 1985, c. N-7, as amended by An Act to amend the National Energy Board Act and to repeal certain enactments in consequence thereof, S.C. 1990, c. 7, s. 34), and on ss. 6(2)(aa), 15(m) of the National Energy Board Part VI Regulations, C.R.C., c. 1056, as amended, and to this might be added the Canadian Electricity Policy of September 1988 and the Guidelines of the National Energy Board of December 1988, although this Policy and these Guidelines have not been given legislative or regulatory form.
order to act, nor in any case is it the Board's function to lend such support.
By imposing conditions 10 and 11, in my opin ion, the Board clearly exceeded the limits of its jurisdiction and its authority. Such an imposition cannot stand. Does it then follow that the decision itself is vitiated and the Board must reconsider the matter? I do not think so. These conditions can clearly be dissociated from the licences themselves, and there is nothing in the reasons for the decision to suggest that, within the limits of its jurisdiction, the Board had reasons for refusing to grant the applications made to it. The quashing of these two conditions therefore should not entail quashing the decision itself.
However, the decision may be void on other grounds.
Challenge by the Grand Council of the Crees of Quebec and the Cree Regional Authority to grant ing of licences themselves
The Grand Council of the Crees of Quebec and the Cree Regional Authority (hereinafter "the Grand Council of the Crees") argued that by deciding the Hydro -Québec applications as it did, the Board did not observe the requirements of its mandate and that its decision is void because it was not made in accordance with the provisions of the Act. Their argument is based on two propositions.
1. First, the Grand Council of the Crees argued that the Board erred in law by applying to the Hydro -Québec applications the new provisions of An Act to amend the National Energy Board Act and to repeal certain enactments in consequence thereof, supra ("Bill C-23"), which as we have seen above came into effect on June 1, 1990, that is well before the decision but after the hearing had taken place and the applications been taken under advisement.
It must be recalled that, with a view to deregu lation, Bill C-23 placed less strict conditions on the exercise of the Board's discretion in considering applications to export electricity. Section 118 of the National Energy Board Act read as follows before June 1990:
118. On an application for a licence, the Board shall have regard to all considerations that appear to it to be relevant and, without limiting the generality of the foregoing, the Board shall:
(a) satisfy itself that the quantity of oil, gas or power to be exported does not exceed the surplus remaining after due allowance has been made for the reasonably foreseeable requirements for use in Canada having regard, in the case of an application to export oil or gas, the trends in the discovery of oil or gas in Canada;
(b) satisfy itself that the price to be charged by an applicant for power exported by the applicant is just and reasonable in relation to the public interest; and
(c) where oil or gas is to be exported and subsequently imported or where oil or gas is to be imported, have regard to the equitable distribution of oil or gas, as the case may be, in Canada.
and the National Energy Board Part VI Regula tions, under the heading "Information to be Fur nished by Applicants for Licence to Export Pow er", echoed this obligation contained in paragraph (b) by stating:
6. (1) Every applicant for a licence for the exportation of power shall furnish to the Board such information as the Board may require.
(2) Without restricting the generality of subsection (I), the information required to be furnished by any applicant described in subsection (1) shall, unless otherwise authorized by the Board, include
(z) evidence to demonstrate that the price to be charged by the applicant for electric power and energy exported by him is just and reasonable in relation to the public interest, and in particular that the export price
(i) would recover its appropriate share of the costs incurred in Canada,
(ii) would not be less than the price to Canadians for equivalent service in related areas ...
With the coming into effect of Bill C-23 in June 1990, section 118 simply reads:
118. On an application for a licence, the Board shall have regard to all considerations that appear to it to be relevant and shall
(a) satisfy itself that the quantity of oil or gas to be exported does not exceed the surplus remaining after due allowance has been made for the reasonably foreseeable requirements for use in Canada having regard to the trends in the discov ery of oil or gas in Canada; .. .
and a new subsection 119.08(2), dealing with the factors to be considered in issuing a licence, merely states:
119.08.. .
(2) In deciding whether to issue a licence, the Board shall have regard to all considerations that appear to it to be relevant.
The Board was wrong, the Grand Council of the Crees said, to take into account the provisions of Bill C-23, which led it to neglect or at least to not apply in the same way the criteria of price in the Act as it stood at the time the Hydro -Québec applications were made and taken under advise ment, in particular the first criterion of cost recov ery, defined in subparagraph 6(2)(z)(i) of the Regulations.
It is true that the Board considered it was bound by the new Act, but I think it was quite right in this respect and its reasoning seems to me to be faultless:
The Board shares the opinion of parties with respect to the application of the principle of non-retroactivity of legislation to Bill C-23, and can only say that none of the provisions of the Bill which apply to the export of electricity constitutes an express exception to this principle. The Board also believes that the provisions of Bill C-23 must begin producing their effects from the moment the bill came into force, on 1 June 1990, in accordance with the general principle of the immediate effect of legislation.
The substantive provisions of Bill C-23 dealing with electricity are essentially aimed at modifying the criteria which the Board must consider when authorizing exports, and the scope of the Board's jurisdiction in certain cases. Other provisions modify the procedure relating to applications for licences to export electricity. None of the provisions of the Bill deals with the manner in which the Board should handle pending applications, nor do they suspend the immediate effect of the amendments to section 118 of the NEB Act or to any other rules previously applicable to the export of electricity.
The Board believes that procedural amendments should have an immediate effect, but that the immediate application of substantive amendments should not affect vested rights, obliga tions acquired or responsibilities incurred before these amend ments came into force.
Counsel for the Grand Council of the Crees tried to show that application of the new Act to the pending applications could be contrary here to the rules of natural justice applicable to their clients as interested parties opposed to the grant ing of the licences. However, I admit that I am somewhat baffled by the argument since the Grand Council of the Crees had complete latitude at the hearing to act on the clear understanding that the coming into effect of the new Act could affect the decision to be rendered, and in any case the easing of the requirements resulting from application of the new provisions certainly would not be a basis for reopening the hearing or holding a special additional hearing.
That is by no means all. Even if the argument were valid, it leads nowhere. It appears from the reasons for the decision that once it had stated its conclusion that the new Act applied, the Board freely chose to analyse the evidence presented in light of the first price criterion of the old Act and decide in accordance with the obligation it had under the old Act. At page 29 of its decision, the Board wrote the following:
The coming into force of Bill C-23 on 1 June 1990 has removed these considerations as explicit criteria to which the Board is obliged to have regard under the new review procedures appli cable to electricity export applications. Nonetheless, under the Amended Act, there is nothing to preclude the Board from having regard to such considerations, either in making a recom mendation to the Governor in Council to designate a proposed export application for licensing procedures or in deciding whether to issue a licence.
In view of the fact that the application was filed prior to the removal of the surplus and price criteria from the Act by Bill C-23, these considerations have been afforded some importance in the Board's examination of the application.
Applications for export
The Board has given careful consideration to all the evidence and submissions presented and has reached the following conclusions.
6.1 Export Price
In assessing whether the price to be charged by an applicant is just and reasonable in the public interest, the Board has used the following two criteria: (a) the export price should recover the applicable costs incurred in Canada and (b) the export price should not be less than the price for an equivalent service to Canadian customers.
Indeed, as can clearly be seen from reading the Board's analysis and commentary on the first cri terion of price, the Board decided that the Hydro - Québec applications had to meet the traditional requirements dating from prior to June 1990. Clearly, it was by reference to the information provided by Hydro -Québec in compliance with the requirements of subparagraph 6(2)(z)(i) of the Regulations that the Board said it felt certain that the export price was just and reasonable in relation to the public interest. The new provisions of Bill C-23 had no influence in this regard. The first proposition of the Grand Council of the Crees is untenable.
2. Even though the Board said it intended to take into account the first criterion of price in subparagraph 6(2)(z)(i) of the Regulations, the Grand Council of the Crees went on in its second
alternative proposition, it could not validly arrive at the conclusion that the price "would recover (the) appropriate share of the costs incurred in Canada", because it had no direct evidence of this before it.
The proposition can only be understood taken in context. Hydro -Québec had shown that exports of power and energy would come from its network as a whole, but in order to meet the additional needs resulting from the two contracts, as mentioned above, it would have to move up the date on which certain hydro-electric facilities contemplated in its development plan were brought on line. The Board thus concluded that the recoverable costs under the first criterion of price should include all mar ginal production costs, opportunity costs for the part of the exports taken from existing facilities and in particular the cost of bringing forward proposed new hydro-electric facilities. At the time its evidence was filed, Hydro -Québec nevertheless objected to openly disclosing with all supporting documentation its detailed estimate of the cost of bringing forward the production facilities, arguing that the disclosure of these costs would cause it serious injury in its business dealings with its neighbours. The Board did not feel it should insist and allowed Hydro -Québec to submit its evidence by indirect means, namely by filing the testimony of a chartered accountant, who after an audit was able to say, first, that the costs used in making the profitability studies were in fact the cost of the equipment used by Hydro -Québec, and second, that the methodology used by Hydro -Québec in determining the profitability of the exports allowed it to arrive at the results stated regarding the importance of recovering the costs involved. The Grand Council of the Crees was thus right in saying that the evidence was not direct in all respects.
However, why should the evidence be direct in all respects? There is nothing that requires the Board to decide only on direct evidence. The Board had before it the testimony of a series of witnesses and the abundant documentary evidence submitted by Hydro -Québec on the question of profitability. It also had before it the important statement that the Government of Quebec had
approved the contract because of the clear benefit the province would derive from it. At the same time, it was able to get the comments and note the lack of interest of those responsible for adjacent Canadian networks connected with Hydro -Québec (which use sources of electrical production based much less on hydraulic energy and whose produc tion costs are thus higher) regarding electricity to be sold at the price contemplated. All this evidence may not have been direct in all respects, but it certainly carried a strong persuasive force in deter mining feasibility.
The Board held that it was persuaded by this evidence, and I do not see on what basis this Court could undertake to dispute its conclusion. An appeal filed under section 22 of the National Energy Board Act can be concerned only with questions of law and jurisdiction. It cannot be concerned with the way in which the Board arrived at its opinion in light of the facts established before it. The oft-cited remarks of Jackett C.J. on this point in Consumers' Ass'n (Can.) v. Ontario Hydro [No. 1], [1974] 1 F.C. 453 (C.A.), at pages 457 and 458, are worth repeating:
Section 83(b) calls for a determination by the Board as to whether the price to be charged is "just and reasonable" in relation to the public interest. Generally speaking, as it seems to me, where Parliament leaves it to a tribunal to decide "fair and reasonable" or "just and reasonable" rates or prices or public convenience and necessity, the tribunal has a discretion to decide in what manner it will obtain information and the courts have no right to refute the Board's opinion based on the facts established before it. See Northwest Utilities Ltd. v. The City of Edmonton, Union Gas Company of Canada, Limited v. Sydenham Gas and Petroleum Company, Limited and Memorial Gardens Association (Canada) Limited v. Colwood Cemetery Company. Furthermore, where a tribunal adopts a rule of practice to guide it in the exercise of its statutory functions, the question whether it properly appreciates its own rule cannot be a question of law. Nor "can the question whether in a given case the Board has properly appreciated the facts for the purpose of applying the rule be such a question. This is so because ... there is no statutory rule and there is no rule of law that prescribes considerations by which the Board is to be governed in exercising its administrative discretion ...". See Bell Telephone Co. v. Canadian National Railways per Duff C.J.C. (giving the judgment of the Supreme Court of Canada) at page 21.
The second proposition put forward by the Grand Council of the Crees in support of its appeal has no more foundation than the first.
Conclusion
Thus, for all the reasons I have just stated, I consider that the Court should dismiss the related appeal filed by the Grand Council of the Crees of Quebec and the Cree Regional Authority, but allow the appeal of the Attorney General of Quebec and the related appeal of Hydro -Québec. It should thus vacate conditions Nos. 10 and 11 imposed by the National Energy Board on licences EL-179, EL-180, EL-181, EL-182, EL-183, EL-184 and EL-185 which it issued to Hydro - Québec, and at the same time find those licences to be valid.
PRATTE J.A.: I concur. DESJARDINS J.A.: I concur.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.