Quebec, Newfoundland set to unveil major electricity deal; 'energy security' announcement due Monday amid reports of agreement

Quebec and Newfoundland and Labrador are on the verge of announcing a major electricity supply agreement that aims to resolve a long-standing dispute over energy sharing from the Churchill River. The announcement is scheduled for Monday afternoon, with Premier Tony Wakeham of Newfoundland and Labrador and Quebec Premier Christine Fréchette leading the event in St. John’s.¹

The two provinces have been negotiating a deal to replace the current 1969 agreement governing the operation of the Churchill Falls generating station, which Newfoundland and Labrador considers unfair. Hydro-Québec currently purchases electricity from the plant at 0.2 cents per kilowatt hour, a rate that is set to increase to an effective average price of 5.9 cents per kilowatt hour by 2075 under the new agreement.

The tentative deal is expected to provide both provinces with more electricity than previously outlined in a December 2024 memorandum of understanding. Quebec is counting on this agreement to secure the megawatts needed to meet growing demand through 2075, while Newfoundland and Labrador seeks better terms to ensure fair compensation for its resources.

Wakeham's office indicated that significant progress has been made in negotiations, with both sides expressing optimism about finalizing the agreement soon. Fréchette noted that talks had accelerated, giving her confidence that a deal could be signed in the near future.

The announcement will also feature Quebec’s energy minister, Bernard Drainville, and Hydro-Québec president Claudine Bouchard, highlighting the importance of this agreement for regional energy security and economic development.