Ontario to pay another $28 million for not producing electricity, this time to U.S. wind-farm firm

Canada has to pay $28 million in damages and legal costs to a company that wanted to build a wind farm in Lake Ontario but whose plans were abruptly halted by the Ontario government in 2011, an international tribunal says.

Windstream Energy, whose plans were backed by American investors, filed a claim under the North American Free Trade Agreement alleging the province treated it unfairly and inequitably. The company demanded US$475 million in damages. Because it’s a claim under an international trade treaty, the federal government had to stick up for the province’s decision.