Details are expected Thursday on what could be a multi-billion dollar agreement between Newfoundland and Labrador and Québec to reshape the contract of the Churchill Falls hydroelectric project, a bitter point of contention for decades between the two provinces.
Newfoundland and Labrador Premier Andrew Furey and Quebec Premier François Legault are expected to outline what Furey’s government has called a “historic partnership agreement” at The Rooms cultural complex in St. John’s at 2 p.m. NT.
The two premiers met in St. John’s Wednesday night, and had what Legault described on the X social media platform as a working dinner. Writing in French, he said, “See you tomorrow with great news.”
In a post of his own on X, Furey described Legault as “my friend” and said the two had had “a productive discussion, indeed.”
The announcement is widely believed to address the multi-billion dollar Churchill Falls hydroelectric project — the majority of which Newfoundland and Labrador owns, but with the majority of the revenue flowing to Hydro-Québec. Québec pays just 0.2 cents per kilowatt hour for electricity from the plant, and sells at vastly higher prices.
In its most recent annual report, Hydro-Québec says the average sale price for exported electricity in 2023 was 10.3 cents/kWh.
That would mean electricity it exported was sold at 51 times higher than what it paid for Churchill Falls electricity.
While the original agreement between the provinces expires in 2041, a renegotiated deal to renew the contract could be within reach, as first reported by Radio-Canada on Tuesday.
Quebec and Newfoundland and Labrador officials have been meeting frequently for months, with few details released.
Quebec Premier Francois Legault and Newfoundland and Labrador premier Andrew Furey are coming together in St. John’s for a potentially historic announcement. It is believed a deal is close on a renewed contract for the Churchill Falls hydroelectric plant. The CBC’s Terry Roberts reports.
Furey, though, has maintained that any renegotiation has to lead to dramatically better results for Newfoundland and Labrador.
“Quebec needs to show us the money,” Furey said in 2023.
Legault himself has acknowledged that the deal needs adjustments. In February 2023 in St. John’s, Legault acknowledged that the agreement was a “bad deal” for Canada’s easternmost province, but he stopped short of agreeing with Furey that it was “an injustice.”
Much at stake, Tory leader says
Tony Wakeham, leader of the political opposition in Newfoundland and Labrador, said he was left in the dark on details on Wednesday. However, anything involving a new Churchill Falls deal would be significant, he said.
“This is a deal that’s been in the face of Newfoundlanders and Labradorians for a long, long time. And I don’t think anybody would suggest that it’s been a great deal,” Wakeham said. “It has not been a good deal for Newfoundland and Labrador.”
Wakeham also voiced concern about the timing of the announcement. He questioned whether or not the deal could be used by Furey as an election ploy — on account that he can call an election anytime before Oct. 14, 2025. Wakeham said the deal needs to be more than a potential boost of political prospects.
Progressive Conservative Leader Tony Wakeham says a renewed contract between Quebec and Newfoundland and Labrador for the Churchill Falls hydro project could be transformative for generations. But, he cautions, there has to be oversight — and there shouldn’t be a rush for political reasons.
“In addressing that deal, it can’t simply be about the next election. It has to be about the next generation. And I say that because I think it’s very, very important, that we have a one-time opportunity here and we have to get this right,” Wakeham said.
“We are in the driver seat. So I want to make sure there are a lot of people out there who will want to have an opportunity to express an opinion and to weigh in on this.”
Both Wakeham, and NDP Leader Jim Dinn when speaking on Wednesday, said openness and transparency have to happen in any negotiation.
Wakeham called on Furey to immediately reopen the House of Assembly come January so the contents of the deal can be explored and scrutinized.
Deal still on the minds of Innu Nation
Joe Goudie, a former Tory cabinet minister and veteran political figure in Labrador, remembers when the deal was first signed in 1969. The 65-year contract came into effect seven years later, in 1976, and was the subject of unsuccessful court challenges that Newfoundland and Labrador took to the Supreme Court of Canada.
“There have been a number of attempts on the part of Newfoundland and Labrador to try and correct this unfair situation,” Goudie said. “It’s going to be interesting to hear if there are compromises and what they are, and what their future might hold for any future dealings.”
Meanwhile, eyes will also be on the Innu Nation’s role in any kind of agreement. Innu were not consulted in the original project’s construction, which is built on lands they traditionally use.
The area was also used by trappers, including in Goudie’s family. The Innu Nation has said said they will prevent any new agreement without their consent.
“They claim, and I assume their claim is reasonably accurate, that this is their historical land. There are Innu burial grounds and historic sites, but none of that was even thought about, I guess, is the best way to put it,” Goudie said.
Goudie said he’ll be watching to see how a new agreement will affect the current deal still in place, and whether or not it involves any progress in developing the Gull Island project — a separate undeveloped and long-proposed megaproject downstream on the Churchill River.
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