After a recent leadership change in Newfoundland and Labrador, there is uncertainty surrounding the province’s major hydroelectric agreement with Quebec. The tentative agreement, known as the Churchill Falls MOU, aims to replace the controversial 1969 contract that has long been criticized as unfair to Newfoundland and Labrador. Signed in December, the MOU includes plans for new hydroelectric projects, such as the Gull Island development slated for completion by 2035. Newfoundland and Labrador Hydro and Hydro-Québec have also proposed the construction of a second plant at Churchill Falls and increasing production at the existing complex.
With the Progressive Conservative party, led by Tony Wakeham, securing a majority government on Tuesday night, questions have arisen about the fate of the hydroelectric deal. Wakeham has stated that any decision regarding the Churchill River deal will be subject to approval by voters through a referendum. In his victory speech, Wakeham emphasized the importance of developing resources like Churchill Falls and Gull Island for the benefit of local communities, asserting that his government will prioritize the interests of the province over past practices of blindly accepting agreements.
Wakeham has vowed to conduct an independent review of the existing deal and make the findings transparent to the public. Should adjustments or renegotiations be necessary, Wakeham expressed readiness to address them. Quebec Premier François Legault has expressed support for the agreement, emphasizing its mutual benefits for both Newfoundland and Labrador and Quebec. Hydro-Québec has echoed this sentiment, affirming their commitment to ongoing negotiations with Newfoundland and Labrador Hydro.
The Churchill Falls MOU is projected to generate over $200 billion for both provinces over the next five decades. Legault, currently in his second term as Quebec’s premier, is expected to face re-election on October 5, 2026.