Agreement between N.L. and Que. on Churchill Falls could be within reach, Radio-Canada reports
An agreement between Newfoundland and Labrador and Québec to renew the contract for the Churchill Falls hydroelectric project may finally be within reach, as reported by Radio-Canada. The negotiations have been ongoing for years, with recent talks between senior executives from Newfoundland and Labrador Hydro and Hydro-Québec showing promising signs of progress. Both Premier Andrew Furey and Québec Premier François Legault have refrained from commenting on the matter, indicating a level of discretion surrounding the potential agreement.
The longstanding legal dispute over Churchill Falls dates back to the original agreement signed in 1969. Under the terms of the contract, Hydro-Québec agreed to purchase the majority of the electricity generated by the plant, while Churchill Falls agreed to fixed prices for the duration of the contract to protect against cost overruns. However, the deal heavily favored Québec, generating over $28 billion for the utility compared to the mere $2 billion returned to Newfoundland and Labrador. With the contract set to expire in 2041, the disparity in benefits has been a point of contention for successive Newfoundland and Labrador premiers, including Furey.
Despite efforts to renegotiate the terms of the contract, the Supreme Court rejected Churchill Falls Corp.’s bid to reopen discussions with Hydro-Québec in 2018. The lack of obligation on the part of the Québec utility to renegotiate further complicated the situation. However, a glimmer of hope emerged during a meeting between the two premiers in February 2023, where Legault acknowledged the inequities of the existing agreement and expressed willingness to address the issue.
The potential renewal of the Churchill Falls contract coincides with election speculation in both Newfoundland and Labrador and Québec. With fixed-date election laws in place, Furey could call for an election before the mandated date of October 14, 2025. Similarly, Québec faces an election deadline of October 5, 2026, with the current CAQ government experiencing a decline in public support. The outcome of the negotiations surrounding Churchill Falls could have significant implications for the political landscape in both provinces.
However, the controversy surrounding the Churchill Falls dam extends beyond political and economic considerations. The Innu Nation has raised concerns about their lack of involvement in the negotiations and is actively pursuing legal action against Churchill Falls Corp. and Hydro-Québec for environmental damage caused by the hydroelectric project. Grand Chief Simon Pokue has emphasized the importance of obtaining consent from the Innu Nation before finalizing any agreements related to the dam.
As discussions progress and the possibility of a new contract looms, stakeholders on all sides are closely monitoring the developments. The outcome of the negotiations will not only impact the energy sector but also have broader implications for Indigenous rights, environmental protection, and political dynamics in Newfoundland and Labrador and Québec. Stay updated on this story and other important news by downloading the free CBC News app for push alerts and subscribing to the daily headlines newsletter.
