After N.L. Election, Churchill Falls Hydroelectric Deal With Quebec on Shaky Ground
A change in government in Newfoundland and Labrador has cast uncertainty over a tentative $200-billion hydroelectric agreement with Quebec that would reshape energy cooperation between the two provinces.
The Churchill Falls memorandum of understanding (MOU) — signed last December — was designed to replace the 1969 contract long viewed as unfair to Newfoundland and Labrador. It included plans for a new Gull Island project slated for 2035 and a second generating station at Churchill Falls, alongside expanded production at the existing facility.
Wakeham vows review, referendum before proceeding
Following Tuesday’s election, Progressive Conservative leader Tony Wakeham ousted the Liberals and became premier-designate, promising to revisit the deal.
“The era of a rubber-stamp government is over,” Wakeham said in his victory speech. “If this agreement needs to be amended or renegotiated, we will do so.”
Wakeham pledged a “true independent review” and said any final deal on the Churchill River would require voter approval through a referendum.
Quebec signals confidence in agreement
Quebec Premier François Legault congratulated Wakeham on his win and reaffirmed support for the MOU, calling it “beneficial for both Newfoundland and Labrador and Quebec.”
Hydro-Québec echoed the optimism in a statement to Radio-Canada, saying it remains confident the deal is “fair and beneficial to both parties.”
“We have made significant progress in recent months toward a detailed agreement and are committed to continuing negotiations,” the utility said.
Future of Churchill River development uncertain
The MOU could generate more than $200 billion over 50 years, but Wakeham’s stance introduces new uncertainty just as Quebec approaches its 2026 provincial election.
While Legault is keen to finalize terms within his current mandate, Newfoundland and Labrador’s incoming government insists local control and public consent will determine whether the landmark hydro project moves forward.
