After decades of disputes and years of negotiations, an agreement between Newfoundland and Labrador and Quebec to renew the contract for the Churchill Falls hydroelectric project could be within reach, according to Radio-Canada.
Deal long disliked by Newfoundland and Labrador premiers runs until 2041
Alex Kennedy · CBC News
·
After decades of disputes and years of negotiations, an agreement between Newfoundland and Labrador and Québec to renew the contract for the Churchill Falls hydroelectric project could be within reach, according to Radio-Canada.
Radio-Canada is reporting that senior executives from Newfoundland and Labrador Hydro and  Hydro-Québec had met several times over the past year, and that talks have ramped up in recent weeks. The offices of both Premier Andrew Furey and Québec Premier François Legault declined interviews with Radio-Canada on the matter.
CBC News has contacted Furey’s office for comment.
The legal dispute over Churchill Falls has been long running. Under the terms of the agreement, Hydro-Québec agreed to buy most of the electricity produced by the plant and protect Churchill Falls from cost overruns. In return, Churchill Falls agreed to fixed prices for the entire term of the contract.
Signed in 1969, the contract has made more than $28 billion for Québec’s hydro utility, while only returning $2 billion to Newfoundland and Labrador. The deal is in place until 2041.
Furey, like other premiers before him, has openly called the contract a thorn in the side of Newfoundland and Labrador. He also stated in November that he wouldn’t negotiate a new deal in public.
In November 2018, the Supreme Court rejected Churchill Falls Corp.’s bid to reopen the energy deal with Hydro-Québec, ruling the Québec utility had no obligation to renegotiate the contract.
The two premiers met in St. John’s in February 2023, where Legault told both Furey and reporters that he understood the frustration around what he called a “bad deal” for Newfoundland and Labrador.
The possibility of a new Churchill Falls contract also comes at a time of election speculation in Newfoundland and Labrador. An election must happen by at least Oct. 14, 2025, as part of the province’s fixed-date election laws, but Furey could call an election before then.
An election also must happen in Québec by Oct. 5, 2026. Legault’s Coalition Avenir Québec (CAQ) government has lagged in the polls for more than a year.
The Churchill Falls dam has also proven controversial with the Innu Nation, who have been vocal about their lack of involvement in the negotiations. Grand Chief Simon Pokue has said they will prevent any new agreement without their consent.
As well, the Innu Nation is suing both Churchill Falls Corp. and Hydro-Québec for their role in environmental damage caused by the hydroelectric dam, which is constructed on lands that were traditionally used by the Innu.Â
Download our free CBC News app to sign up for push alerts for CBC Newfoundland and Labrador. Sign up for our daily headlines newsletter here. Click here to visit our landing page.
Corrections
-
A previous version of this story said an election would have to be held in Newfoundland and Labrador by Oct. 20, 2025. In fact, that date is Oct. 14, 2025.
Dec 10, 2024 9:16 PM NT
With files from Veronique Prince
