PCs walk before vote, but Churchill Falls MOU gets support of most MHAs following four-day debate

After four days of intense debate in the Newfoundland and Labrador legislature, a dramatic conclusion saw most politicians voting in favor of the Churchill Falls memorandum of understanding (MOU). This decision also paved the way for further negotiations with Hydro-Quebec to formalize new long-term energy deals on the Churchill River.

The vote, which took place with the 14 members of the PC caucus walking out of the legislature due to concerns over the level of independent oversight of the non-binding MOU, passed 25-0. The motion had support from 21 Liberals, two NDP, and two independent members. Speaker Derek Bennett did not vote.

PC Leader Tony Wakeham defended his party’s decision to abstain, emphasizing the need for sufficient independent review before supporting the MOU. Energy Minister Andrew Parsons criticized the PCs, labeling their abstention as a “coward’s move” and disrespectful to the legislature and constituents.

During the four-day debate, top officials from N.L. Hydro and expert consultants from international firms provided insights into the MOU, highlighting the potential benefits for Newfoundland and Labrador. N.L. Hydro CEO Jennifer Williams outlined the advantages of the MOU, emphasizing that it was the best possible deal for the province.

Premier Andrew Furey hailed the MOU as a significant economic opportunity that could deliver an estimated $227 billion to the provincial treasury over the next few decades. While the Liberals, NDP, and independent MHAs supported the motion, the PC MHAs pressed for an independent review by the province’s utility regulator, the PUB.

Despite the PC’s concerns, the motion passed, setting the stage for formal negotiations with Hydro-Quebec to rewrite the existing Churchill Falls agreement. The goal is to sign ten contracts by 2026, potentially bringing in $17 billion in new revenue for the province by 2041. The MOU also includes plans for the construction of the Gull Island project and an expansion of the Churchill Falls station.

With Hydro-Quebec financing and building the new projects, N.L. Hydro will retain ownership and receive a rate of return. The projects will increase capacity on the Churchill River and see electricity sold to Hydro-Quebec at escalating prices, unlike the fixed rate in the original contract.

Overall, the decision to move forward with negotiations marks a significant step towards rectifying an historic injustice and securing a better deal for Newfoundland and Labrador. The province stands to benefit economically from the new energy deals, with the potential for lasting positive impacts on its energy sector.