Review will conclude Churchill Falls MOU not in public interest in its current form, source says
The review of the Churchill Falls MOU is expected to conclude that the current memorandum of understanding is not in the public interest of Newfoundland and Labrador, a source tells NTV News.
The long-awaited review will be made public at a news conference at 12:30 p.m. Newfoundland time on Tuesday. NTV will carry the announcement live.
Premier Tony Wakeham appointed the three-person independent review committee last December. The members are former Emera CEO Chris Huskilson, business professor Dr. Guy Holburn, and accountant Michael Wilson. They were charged with reviewing the Churchill Falls MOU signed by former N.L. premier Andrew Furey and former Quebec premier Francois Legault in 2024.
The source tells NTV News that the report is expected to show the MOU does have important economic benefits up until 2041, when the original Churchill Falls contract expires, but after 2041 there are significant limitations. It’s expected that the report will raise concerns about problematic pricing and payment models, and lack of access for Newfoundland and Labrador Hydro to export markets.
The report is also expected to raise concerns about other components of the MOU, including the terms to develop Gull Island and expand the Churchill Falls facility.
The independent review committee’s key conclusion is expected to be that, despite the benefits, the MOU in its current form is not in the public interest. Recommendations in the report will be aimed at helping the province work toward a revised agreement with Hydro-Quebec that is in public interest.
The report is expected to provide “a comprehensive roadmap for the way forward and clarifies what needs to change in order to make an improved agreement for Newfoundland and Labrador,” the source says.
The review has not been without controversy. The opposition Liberals and NDP have charged that the review committee is biased because Huskilson was involved in negotiating the Muskrat Falls project, while Wilson had already publicly stated his opposition to the MOU after quitting the previous oversight panel last year. The opposition is also concerned about the committee getting legal advice from lawyer Jerome Kennedy, a former Tory cabinet minister in the Danny Williams and Kathy Dunderdale administrations.
None of the committee members will be speaking at the news conference. Instead, the report will be released by Premier Wakeham and Energy Minister Minister Lloyd Parrott.
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