From left, Canadian Prime Minister Mark Carney, Newfoundland and Labrador Premier Tony Wakeham and Quebec Premier Christine Fréchette walk towards the podium on Monday, Aug. 17, 2026 to announce a new Churchill Falls deal. Photo by Keith Gosse/The TelegramArticle contentA new deal to develop electricity projects on the Churchill River in Labrador will generate 2,750 megawatts of new power and is promising $13 billion more for Newfoundland and Labrador than an agreement reached in 2024.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentThe latest power pact between Newfoundland and Labrador Hydro and Hydro Quebec effectively replaces the memorandum of understanding from two years ago.Article contentArticle contentArticle contentThe deal was announced and signed in St. John’s on Monday.Article contentThe agreement is also promising better value for Newfoundland and Labrador than the 2024 MOU, which itself had been set as the basis of a final deal to replace the infamous 1969 Churchill Falls contract signed between the two provinces.Article contentThe ‘69 deal sold hydroelectric power generated at Churchill Falls to Quebec at below market value. Quebec has made billions of dollars of profit off that deal, which is not set to expire until 2041.Article contentHowever, negotiations have been ongoing in recent years to right what has been perceived as a historic wrong in Newfoundland and Labrador.Article contentThe 2024 MOU, which was negotiated under former Liberal premier Andrew Furey’s administration, was dead in the water after Newfoundland and Labrador voted in Tony Wakeham’s Progressive Conservatives in the fall of 2025.Article contentWakeham had campaigned on getting a better Churchill Falls agreement and even promised to hold a referendum on any deal that his government worked out with Quebec. However, on Monday, Wakeham said the referendum is off in favour of a special sitting of the House of Assembly to commence on Sept. 14, in which MHAs will be able to “scrutinize the deal on behalf of their constituents.”Article contentArticle contentQuebec also has a new premier since the 2024 MOU, with Christine Fréchette taking over leadership of Coalition Avenir Québec in April 2026 and succeeding former premier François Legault.Article contentFréchette and the CAQ will seek to maintain power in Quebec’s general election in the October 2026, but trail the Parti Québécois in the polls.Article contentTHE DETAILSArticle contentThe new agreement resets the value of the project for Newfoundland and Labrador from $36 billion in the previous MOU to $49 billion in 2026 net present value.Article contentIn what is being touted as the largest clean energy investment in North American history – with more than $50 billion in capital spending in Newfoundland and Labrador – the deal involves a suite of new hydro, wind and transmission developments.Article contentWhereas the previous MOU featured 1990 megawatts of power from upgrades to the existing Churchill Falls power plant, a new generating facility at Churchill Falls and development of a new plant at Gull Island on the Lower Churchill River, the revised deal promises 2,350 megawatts of new hydro power.
New Churchill Falls deal to generate more power and revenue for Newfoundland and Labrador
