A new agreement between Newfoundland and Labrador (N.L.) and Quebec regarding Churchill Falls is in the works, aiming to enhance energy production with revised distribution plans. Unnamed sources revealed to CBC News that a memorandum of understanding (MOU) is nearing finalization, with an official announcement likely next week. According to insiders cited by Radio-Canada, the updated deal will see Quebec receiving approximately 10,000 MW and N.L. securing between 2,350 MW and potentially up to 3,000 MW. The specifics are still being ironed out.
To achieve the increased energy output, both provinces have agreed to bolster the hydroelectric facility at Gull Island and enhance the turbine capacity at the current Churchill Falls plant. Notably, the new agreement also integrates wind power, a notable addition absent from the prior 2024 MOU. The pricing structure for the electricity sales is anticipated to remain relatively unchanged.
Minister Lela Evans avoided divulging detailed information about the upcoming MOU during a recent press interaction. While N.L. Premier Tony Wakeham had pledged a referendum on the Churchill Falls agreement if his party assumed power during the last election, Evans refrained from addressing the potential of a new deal going to referendum, highlighting the government’s focus on job creation and economic prosperity for residents.
Labrador City Mayor Jordan Brown emphasized the significance of a revised deal to bolster electricity generation in the region, citing potential economic repercussions if no progress was made. The renegotiated agreement includes guaranteed transmission access of 985 megawatts through Quebec, enabling N.L. to export electricity through Quebec’s network to other markets, offering new opportunities for energy trade.
Furthermore, Gabe Gregory, an accounting consultant involved in reviewing the 2024 MOU, acknowledged the potential significance of enhanced market access but cautioned against premature excitement until official details are disclosed. He advocated for an independent review of the new MOU, emphasizing the importance of public input in decisions concerning natural resources.
Ben Oates, chair of Friends of Renewable Churchill Energy, expressed contentment with the revised MOU’s similarities to its predecessor, emphasizing the need for fair value in power agreements. However, he raised concerns over potential risks associated with the upcoming Quebec elections and their impact on the deal’s stability.
