Carney, Wakeham, and Fréchette seal historic Churchill Falls energy deal in St. John's

The governments of Newfoundland and Labrador and Quebec have been engaged in extensive negotiations to replace the 1969 Churchill Falls contract, which is set to expire in 2041. The original agreement jointly owned the generating station but heavily favored Quebec. In 2024, a framework agreement was unveiled to end the old deal and establish a new arrangement for sharing energy and expanding the Churchill River's generating capacity. However, when Tony Wakeham was elected premier of Newfoundland and Labrador last fall, he subjected the draft deal to an independent review and sent a negotiating team back to the bargaining table, seeking better terms for his province.

Sources with direct knowledge of the new agreement, who are not authorized to speak publicly, have revealed key details. The deal includes guaranteed transmission access of 985 megawatts through Quebec, allowing Newfoundland and Labrador to sell that amount of power to outside markets. Each province will receive significantly more electricity than the previous memorandum of understanding stipulated, with nearly 40 percent more for Quebec and between 25 and 60 percent more for Newfoundland and Labrador. Quebec could receive around 10,000 megawatts, while Newfoundland and Labrador could get at least 2,350 megawatts, possibly as much as 3,000. To achieve this increase in electricity production, the two sides have agreed to develop an even more powerful hydroelectric facility at Gull Island and further increase the generating capacity of the turbines at the existing Churchill Falls plant. The new agreement also notably includes wind power, which was not part of the 2024 memorandum of understanding signed by former Liberal premier Andrew Furey and former Quebec premier François Legault.

The announcement is scheduled for Monday afternoon in St. John's, Newfoundland and Labrador. Premier Wakeham's office confirmed that Quebec Premier Christine Fréchette, Quebec's Energy Minister Bernard Drainville, and Hydro-Québec president and CEO Claudine Bouchard will be in attendance. The presence of Prime Minister Mark Carney, confirmed late on Sunday by his office, elevates the event to a national level, underscoring the significance of the deal for Canada's energy security and economic development. Hydro-Québec has also scheduled a closed-door technical briefing for reporters on Monday morning, and Natural Resources Canada is holding a media technical briefing in Ottawa, indicating a coordinated effort to explain the complex agreement to the public.

The consequences of this new agreement are far-reaching. For Newfoundland and Labrador, the deal represents a long-sought correction to a historical grievance, providing a massive increase in revenue and energy sovereignty. The guaranteed transmission access through Quebec opens up new markets for the province's hydroelectric power. For Quebec, the deal secures a massive amount of clean energy to meet its own growing demands. The inclusion of wind power and the development of the Gull Island facility signal a major expansion of renewable energy infrastructure in Atlantic Canada. The agreement is expected to reshape the economic and political relationship between the two provinces, ending decades of acrimony over the 1969 contract and setting the stage for a new era of energy cooperation.