Canada, Quebec and Newfoundland and Labrador have agreed to replace the 1969 Churchill Falls contract, ending one of the longest-running disputes in Canadian energy.
Under that contract, Quebec bought Churchill Falls power for 0.2 cents per kilowatt hour and resold it at market rates. Newfoundland and Labrador challenged it in court and lost, and the deal was set to run until 2041.
Carney announced the replacement in St. John’s alongside Newfoundland and Labrador Premier Tony Wakeham and Quebec Premier Christine Fréchette. The agreement is not yet final, with definitive documents expected by the end of the year.
The federal government is providing $10 billion in financing behind upgrades to Churchill Falls, the Gull Island hydroelectric project, an onshore wind project developed with the Innu of Labrador, and new transmission lines. The full package is valued at nearly $70 billion and delivers 14,000 megawatts.
The deal offers a win for all parties. Quebec secures supply through 2077, which is enough to meet a large share of its growing demand without building it from scratch. And Newfoundland and Labrador stops selling at 0.2 cents per kilowatt hour and gains the right to transmit power through Quebec to buyers in New York and New England, which the 1969 contract did not permit.
Our research shows 85 per cent of engaged women support breaking down interprovincial barriers to move resources freely. This deal is an example of two provinces agreeing on how to build and how to share what gets built, and it moves in the direction engaged women have been asking for.