Newfoundland and Labrador and Quebec are close to a new Churchill Falls deal, with a few issues still open.
Churchill Falls deal moves closer
Newfoundland and Labrador and Quebec are now close to a new deal on Churchill Falls.
However, the deal is not final yet.
Sources with knowledge of the talks told CBC News that only two or three issues remain. Meanwhile, both sides hope to make a formal announcement early next week.
The sources were not allowed to speak in public.
Governments report major progress
The news comes after La Presse reported that a deal had already been reached.
Still, the office of Newfoundland and Labrador Premier Tony Wakeham said no final deal has been signed.
Ashley Politi, a spokesperson for Wakeham, said talks have made “significant progress”. In addition, the talks involve the Government of Canada.
The goal is to replace the 2024 memorandum of understanding, or MOU, with a new deal for Churchill Falls and Gull Island.
Meanwhile, Quebec Premier Christine Fréchette’s office would not confirm the report. The office said it could neither confirm nor deny the news at this time.
A long fight over Churchill Falls
The talks come after years of debate over the Churchill Falls power contract.
In December 2024, former Newfoundland and Labrador premier Andrew Furey signed an MOU with Quebec. The plan aimed to replace the 1969 contract, which has long been a major source of anger in the province.
The 2024 deal also included plans for Gull Island.
Gull Island is a proposed hydro project on the Churchill River. However, the MOU was never made final.
It was expected to become a formal deal by April 2026. That deadline passed without an agreement.
New talks began this summer
After the 2025 provincial election, Wakeham’s Progressive Conservative government ordered an independent review of the MOU.
That review later found that the MOU was not in the public interest.
During the election, Wakeham also promised a referendum on the Churchill Falls MOU.
However, he has said little about that promise since taking office. Instead, he has said a new deal must come first.
Talks between Newfoundland and Labrador and Quebec resumed in June.
Then, just weeks ago, Wakeham met Fréchette in Prince Edward Island. The two leaders discussed a new deal for Churchill Falls power and the future of Gull Island.
Opposition calls for more openness
Meanwhile, the opposition Liberals want more details from the provincial government.
They are also unhappy that news of the talks came through Quebec media.
“Once again, Newfoundlanders and Labradorians are learning about the latest MOU developments through Quebec media rather than from our own government,” the opposition said in a statement.
The Liberals also said reports suggest the new deal may still be close to the old MOU.
As a result, they are calling on Wakeham to share more details with the public.
A final deal is still ahead
For now, the key point is simple: talks have moved forward, but no final deal has been signed.
Still, the two governments appear close.
If the remaining issues are settled, an announcement could come early next week.
For Newfoundland and Labrador, the stakes are high. The province has long sought a better return from the power generated at Churchill Falls.
So, after decades of debate, the next few days could mark a major step in the future of Churchill Falls.
