Montreal

Quebec premier to visit Newfoundland and Labrador for talks on Churchill Falls deal

The 1969 agreement with Newfoundland and Labrador allows Hydro-Quebec to purchase the majority of the electricity generated at the station in central Labrador — and therefore reap most of the profits.

Agreement signed in 1969 due to expire in 2041

Two men talk to each other in front of the Newfoundland and Labrador and Quebec flags
Quebec Premier François Legault says he is eager to meet and negotiate a deal with Newfoundland and Labrador's Andrew Furey. (The Canadian Press)

Quebec Premier François Legault will travel to Newfoundland and Labrador on Thursday for two days of talks on a new Churchill Falls hydroelectricity deal.

Legault made the announcement Tuesday during question period at the Quebec legislature.

The 1969 agreement with Newfoundland and Labrador allows Hydro-Quebec to purchase the majority of the electricity generated at the station in central Labrador — and therefore reap most of the profits.

As of 2019, the deal has yielded close to $28 billion in profits to Quebec, compared to just $2 billion for Newfoundland and Labrador.

Legault has made the deal's renewal a key piece of his energy strategy as the province tries to lower emissions and meet its growing electricity needs.

The Newfoundland and Labrador government established a panel last year to prepare for the negotiations and examine how the province could benefit when the current agreement ends in 2041.

Nearly all of the electricity generated at Churchill Falls is sold under contract at a rock-bottom price to Hydro-Quebec. That contract expires on Aug. 31, 2041. (Nalcor Energy)

The panel says in a news release that its recommendations to the provincial government include negotiating a new arrangement for sales to Hydro-Quebec.

In a tweet Tuesday, Newfoundland and Labrador Premier Andrew Furey said there is "much potential" to work with Quebec and meet future energy demands.

Furey says his team will ensure Newfoundlanders and Labradorians get the best possible value from the province's energy assets.