- Newfoundland and Labrador will have 985 megawatts of guaranteed transmission access through Quebec's network, allowing it to sell power to other markets, as reported by allNewfoundlandLabrador.
- This new deal enables Newfoundland and Labrador to sell up to 985 megawatts of electricity from the Churchill River through Hydro-Quebec's transmission network to other markets.
- CBC confirmed the details of the new deal through a source with direct knowledge who is not authorized to speak publicly.
- Sources indicate that two or three issues remain but are close to resolution, with a formal announcement expected early next week.
- Ron Penney described the change as 'a big change' and 'very advantageous' to Newfoundland and Labrador, while cautioning about a looming Quebec election.
- The previous Churchill Falls MOU did not guarantee transmission access, allowing Quebec to have first access to any unused energy from Newfoundland and Labrador.
- Concerns have been raised about the looming Quebec election and the potential opposition from the PQ regarding the new agreement.
- Penney also noted that negotiations cannot occur during an election, which could delay the legal agreement process.
A new deal between Newfoundland and Labrador and Quebec guarantees 985 megawatts of transmission access through Quebec's network, a significant improvement over the previous agreement that lacked such guarantees. This access allows Newfoundland and Labrador to sell electricity from the Churchill River to other markets, enhancing its economic prospects.12
Sources confirmed that the previous Churchill Falls MOU did not ensure transmission access, allowing Quebec to have first access to unused energy set aside for Newfoundland and Labrador. Ron Penney, a local expert, stated, "It would be a big, a big change, no question and very advantageous to us."6
The deal is expected to be formally announced soon, with only a few outstanding issues remaining. However, Penney cautioned against premature celebration, noting that political changes in Quebec could impact the agreement's future. “I don't think we should celebrate too much even if the deal is signed because the polls show that the PQ is going to be the next government in Quebec and they oppose the existing MOU,” he said.
The new agreement reflects a shift in priorities, with officials emphasizing the need for Newfoundlanders and Labradorians to be the primary beneficiaries of their resources. “My focus remains firmly on acting in the and my priority will always be to ensure that Newfoundlanders and Labradorians are the primary beneficiary of our resources,” said Wakeham in January.
As negotiations continue, the outcome remains uncertain, but the potential benefits of this deal could significantly impact the province's energy landscape.
“The previous MOU gave Quebec first access to unused N.L. energy, but the new deal ensures N.L. can sell up to 985 megawatts to markets like Massachusetts. However, Ron Penney warns a looming Quebec election and PQ opposition could derail the agreement, as negotiations can't happen during an election.”
