Hydro-Québec says it will pay about six cents per kilowatt-hour for the new supply, roughly one-third the cost of alternative sources
After decades of frustration over the 1969 Churchill Falls contract, the province says it has finally secured a new deal designed to deliver far greater value from Labrador’s hydroelectric resources. The original agreement allowed Quebec to purchase Churchill Falls power at extremely low rates and resell much of that electricity for enormous profits.
That contract remains in place until 2041.
In 2024, the former Liberal government under Andrew Furey signed a memorandum of understanding with Quebec, intended to pave the way for a new agreement. But after the Liberals were defeated in last year’s provincial election, Premier Tony Wakeham and the Progressive Conservatives promised to get a better deal.
And on Monday, that deal was unveiled. Wakeham says the key difference was Ottawa’s involvement.
Prime Minister Mark Carney delivered up to $10 billion in potential federal financing to the table.
Just hours after the announcement, Hydro-Quebec issued a new release on its website – noting the new agreement will provide Quebec with access to more than 10,000 megawatts of potential electricity from Labrador.
The agreement extends guaranteed access to Churchill Falls electricity until 2077. It also calls for an expansion of the Churchill Falls generating station, construction of the Gull Island project, and studies into new hydroelectric and wind projects in Labrador.
Hydro-Québec says it will pay about six cents per kilowatt-hour for the new supply, roughly one-third the cost of alternative sources. The province also stands to benefit from development, construction and jobs tied to the projects.
Hydro-Québec President and CEO Claudine Bouchard says the agreement will secure Quebec’s energy future while creating value for both provinces.
“At a time when demand for electricity is growing rapidly, we have reached an agreement that will secure Québec’s energy future at an advantageous cost. This will give us access to a significant amount of reliable and affordable energy for Quebec,” says Bouchard. “This agreement is based on a renewed partnership with NL Hydro, based on a shared vision for long-term energy development to maximize value creation for both provinces. This collaboration paves the way for the largest renewable energy project in North America and will contribute to Québec’s prosperity for generations to come.”
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