Churchill Falls agreement is 'full speed ahead' as N.L. Hydro, Hydro-Quebec meet in Labrador
Both sides building momentum toward reaching full agreement by spring 2026, says CEO Jennifer Williams
Sitting on the doorstep of the Churchill Falls hydroelectric plant, Hydro-Quebec CEO Michael Sabia and Newfoundland and Labrador Hydro CEO Jennifer Williams say talks to formalize a new 50-year deal on power is full speed ahead.
"This agreement opens, really, a new chapter. A much, much better balanced, more collaborative chapter in the history between Newfoundland and Labrador and between Quebec," Sabia told reporters Monday.
"This transaction is on track, full speed ahead, and it'll be delivered."
The trip to Churchill Falls on Monday was part of talks to formalize what is seen as a generational deal between Newfoundland and Labrador and Quebec.
The original deal, which was signed in 1969 and expires in 2041, was ceremoniously ripped up by Newfoundland and Labrador Premier Andrew Furey during the announcement of a memorandum of understanding between both provinces in December.
Under the new framework agreement, Newfoundland and Labrador will receive an average of $1 billion annually up to 2041, retroactive to 2024, and the stream of revenue will continue to escalate after that.
Williams told reporters she feels discussions are moving in the right direction. Both provinces have committed to having an agreement in place by spring, 2026.
"A lot of momentum [is] being built, and I think it's even strengthening," Williams said.
"Seeing us together is, I think certainly for our province, one of the most important things for people to see.… If you were to go here into the control room at Churchill Falls, you would hear that the teams work really well together."
New deal is balanced, unlike 1969: Sabia
Opposers of the deal have criticized it for being too alike the original, signed in 1969 — specifically citing comments made by Hydro-Quebec senior vice-president Dave Rhéaume to La Presse, where he said the MOU is "the same thing as in 1969 at the end of the day."
Asked by CBC News for his thoughts on the new deal, Sabia reiterated that he believes the it's balanced and benefits both provinces. He also called the 1969 deal unfair and unbalanced toward Newfoundland and Labrador.
"Those days are coming to an end, and they will be replaced by a deal that, in my opinion and our opinion, is a balanced deal that offers much greater flexibility to Newfoundland and Labrador Hydro," Sabia said.
"In that initial agreement, Newfoundland found itself in a circumstance where prices were essentially fixed. That is not, not, the case with this agreement.… Prices increase over time. [That's] number one. And number two, Newfoundland has access to a growing pool of energy."
The deal also includes developing other projects on the Churchill River — like Gull Island — which has a targeted year for commissioning as 2035.
Hydro-Quebec would be the project lead and manage its construction, which would also mean it will have to absorb any cost overrun. N.L. Hydro would operate the facility and get access to 225 megawatts of power.
It's a project Sabia is confident will happen.
"Is there a percentage higher than 100 per cent? Cause if there is, that's where I would be," Sabia said. "As we sort through all this and get to the definitive agreements, Gull Island will happen."
Williams and Sabia were asked about how economic tariffs from the United States could play into discussions. They say there's a renewed sense of urgency to get a deal done and work together as Canadian provinces.
"We're going to get it done as quickly as we practically can.… But we're very focused," Sabia said. "To be honest, in my opinion this deal has never been more important."
Williams said working together is key to helping secure energy in the future, and believes the Churchill Falls deal will bring economic benefits across Canada.
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With files from Terry Roberts and Patrick Butler