Quebec and Newfoundland Reach Major Churchill River Energy Deal

The governments of Quebec and Newfoundland and Labrador have reached a major electricity supply agreement to share energy from the Churchill River in Labrador. Tony Wakeham, Premier of Newfoundland and Labrador, and Quebec officials scheduled the announcement in St. John's for Monday, August 17, 2026.

The deal replaces a 1969 contract governing the Churchill Falls generating station, which Newfoundland and Labrador long considered unfair due to exceptionally low rates. While a framework agreement was established in December 2024, Wakeham paused the deal for an independent review after his election last fall, determining the previous terms were not in his province's best interest.

Under the new terms, Quebec will receive 10 gigawatts of long-term power to help decarbonize its economy through 2075, while Newfoundland and Labrador will secure between 2.35 and 3 gigawatts. The arrangement increases the price Hydro-Québec pays for electricity from 0.2 cents to an average of 5.9 cents per kilowatt hour by 2075.

To support this capacity, Hydro-Québec is expected to invest over $30 billion in upgrades to Churchill Falls and the construction of a new run-of-river generating station at Gull Island, alongside expansions in wind power.