Furey, Legault have ‘working dinner’ ahead of announcing Churchill Falls hydro power deal

Newfoundland and Labrador and Quebec are on the brink of announcing a groundbreaking agreement that could reshape the controversial Churchill Falls hydroelectric project. The two provinces are set to unveil what has been described as a “historic partnership agreement” at The Rooms cultural complex in St. John’s, with details expected to be revealed at 2 p.m. NT.

The anticipation surrounding the announcement stems from the long-standing dispute over the Churchill Falls project, which has been a source of contention between Newfoundland and Labrador and Quebec for decades. The majority of the project is owned by Newfoundland and Labrador, yet the revenue generated primarily benefits Hydro-Québec, with Quebec paying a mere 0.2 cents per kilowatt hour for electricity from the plant while selling it at significantly higher prices.

The renegotiation of the Churchill Falls agreement, set to expire in 2041, has been a focal point of discussions between officials from both provinces in recent months. While details have been scarce, it is widely believed that the new deal will aim to provide a more favorable outcome for Newfoundland and Labrador, with Premier Andrew Furey emphasizing the need for substantial improvements in the province’s favor.

Quebec Premier François Legault has acknowledged the need for adjustments to the existing agreement, referring to it as a “bad deal” for Newfoundland and Labrador. The potential for a renewed contract presents a significant opportunity for both provinces, with the possibility of rectifying past grievances and establishing a more equitable arrangement moving forward.

However, concerns have been raised regarding the timing of the announcement, with opposition leader Tony Wakeham cautioning against using the deal for political gain. He stressed the importance of transparency and oversight in the negotiation process, emphasizing the need for the deal to benefit future generations rather than serve as a short-term political strategy.

The Innu Nation’s role in any new agreement is also a significant consideration, as the original Churchill Falls project was constructed on lands traditionally used by the Innu people without their consultation. The Innu Nation has stated that they will not support any new agreement without their consent, highlighting the importance of addressing historical injustices and involving indigenous communities in decision-making processes.

As the details of the agreement are unveiled, stakeholders will be closely monitoring how the proposed changes will impact the current deal and whether they will pave the way for advancements in projects like the Gull Island development downstream on the Churchill River. The announcement holds the potential to reshape the energy landscape in Newfoundland and Labrador, marking a significant milestone in the ongoing efforts to address the longstanding issues surrounding the Churchill Falls hydroelectric project.