UPDATE 1-Boralex Power says AbitibiBowater cancels 8 contracts

* Cancellation to hit two power plants

* Contracts include biomass supply deals for Dolbeau plant

July 8 (Reuters) - Boralex Power Income Fund (BPT_u.TO) said bankrupt AbitibiBowater Inc (ABWTQ.PK) cancelled eight service and supply contracts affecting Boralex's Dolbeau cogeneration plant and Senneterre power station.

Abitibi cancelled the contracts following an initial order issued by the Quebec Superior Court on April 17, 2009, after Abitibi's bankruptcy filing under the Companies' Creditors Arrangement Act.

Quebec-based Boralex said the contracts involved are the service and maintenance contracts for Dolbeau, which Abitibi had been operating since Boralex bought the plant in 1999.

The cancellation also includes five biomass supply contracts for Dolbeau, a contract to sell steam to the Dolbeau pulp and paper mill owned by Abitibi and a biomass supply contract for Senneterre, Boralex said in a statement.

Under the biomass supply contracts, the Dolbeau plant should get about 90 percent of its biomass fuel from Abitibi sawmills, the company said.

Shares of the company were trading down 12 Canadian cents at C$3.83 in morning trade on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Unnikrishnan Nair)