Newfoundland and Labrador will review agreement with Hydro-Québec within a few weeks

The new premier of Newfoundland and Labrador announced that the review of the draft energy agreement with Hydro-Québec will begin within a few weeks.

Tony Wakeham was sworn in on Wednesday, following his party, the Progressive Conservative Party’s, narrow victory in this month’s provincial election. The election ended ten years of Liberal government.

Wakeham told reporters that he and his new cabinet would discuss over the next two weeks who would be involved in the review and what it would contain.

“We strongly hope that the independent review will be launched in the coming weeks. My priority is to secure the best possible agreement for Newfoundland and Labrador,” he said. 

The premier has been calling for an independent review of the draft agreement ever since the previous Liberal government unveiled it in December.

The agreement in principle stipulates that Hydro-Québec would pay approximately $38 billion for the electricity produced at the Churchill Falls generating station in Labrador.

Hydro-Québec would also manage new developments along the Churchill River, which would be jointly owned by Newfoundland and Labrador Hydro.

The two state-owned companies are currently negotiating final agreements with the aim of concluding enforceable agreements by April 2026.

Wakeham also promised to hold a public referendum on any final agreement. However, it remains unclear how a review or referendum might affect the timeline for concluding binding agreements.

The premier indicated that he had met with representatives of Newfoundland and Labrador Hydro to discuss the agreement and negotiations, and that he intends to meet with them again in the coming days.

He clarified that he had no intention of speaking with Hydro-Québec.

The preliminary agreement would terminate an existing agreement that was set to expire in 16 years. The current agreement allows Hydro-Québec to purchase the lion’s share of the energy produced by Churchill Falls at ridiculously low prices. In Newfoundland and Labrador, this contract has long been a source of resentment and mistrust toward Hydro-Québec.

Liberal leader John Hogan served as premier for approximately four months before dissolving the Legislative Assembly and calling an election campaign, which concluded on Oct. 14. He strongly advocated for the new draft agreement and was well-informed about the ongoing negotiations.

“Tony Wakeham should begin discussions with Hydro-Québec as soon as possible,” he said Wednesday.

The premier needs to be clear with the public and with Hydro-Québec about his intentions regarding a review and a referendum, Hogan added. He explained that Hydro-Québec might not want to continue negotiating an agreement that would receive Wakeham’s approval but would then be rejected by the citizens of Newfoundland and Labrador. 

“Quebec has approximately $225 billion to invest in its energy future. This money will be spent either here or elsewhere,” Hogan emphasized. 

The new premier insists, however, on his desire to ensure that this is the best possible agreement for Newfoundland and Labrador.

–This report by La Presse Canadienne was translated by CityNews