Churchill River Independent Review Committee finds MOU ‘not in the public interest’ 

News May 19th, 2026

The Churchill River Independent Review Committee has found that the MOU regarding future financial arrangements for hydro-electric power generation on the Churchill River, despite some benefits, is not in the public interest. 

The document details the MOU has important financial and economic benefits for the province in the period up until 2041. But states a significant limitation is that NL Hydro’s restricted access to incremental Churchill Falls power up to 2075 is likely to constrain long-run growth in energy-intensive industries such as mining and would hinder other economic development. 

Other areas of concern include what they call problematic pricing and payment models, lack of NL Hydro transmission access for Churchill Falls power to export markets. 

The committee found that the Government of Newfoundland and Labrador oversight and intervention during negotiations effectively superseded the NL Hydro board’s governance role, contributing to a riskier and more expensive deal. 

Although the committee has found the MOU is not in the public interest, the group does say the Government of Newfoundland and Labrador could make significant decisions that may ultimately allow NL Hydro to work toward a revised agreement with Hydro-Quebec to best serve the public interest. 

The total financial benefits to the provincial treasury from the MOU over the 2025 to 2085 period are estimated to be $36 billion in the present value. Out of the $36 billion, $9.2 billion will be received before 2042. Therefore, $7.3 billion is the short-term financial benefit at risk to the province if the HQ CF PPA contemplated in the MOU is not implemented. 

Recommendations: 

1. The Government of Newfoundland and Labrador should determine, based on a comprehensive analysis of long-run economic development options, the extent to which power generation from the Churchill River should provide financial versus economic value to the province over time. 

2. The Government of Newfoundland and Labrador should sanction and support NL Hydro’s construction of new transmission line capacity between Churchill Falls and Labrador West in order to enable economic growth of the province’s energy-intensive industries. 

3. The Government of Newfoundland and Labrador and NL Hydro should remain committed to the objective of building respectful relationships with and consulting Indigenous communities in connection with future developments on the Churchill River and in Labrador. 

4. The Government of Newfoundland and Labrador should rigorously evaluate alternative ownership, operating and right-of-use models for new hydroelectric generation at Gull Island that are consistent with the province being the primary beneficiary of the financial and economic value created. 
5. 5. The Government of Newfoundland and Labrador should prepare for future negotiations with Hydro-Quebec by preparing a fully articulated negotiation strategy and best-practice governance process.