The Official Liberal Opposition’s Shifting Stance on Churchill Falls Agreement
The official Liberal opposition is reconsidering its stance on the Churchill Falls agreement with Newfoundland and Labrador as criticisms mount in the neighboring province amid an ongoing election campaign.
Back in December, when Premier François Legault signed a memorandum of understanding with then Newfoundland counterpart Andrew Furey, interim PLQ leader Marc Tanguay criticized the deal as unfavorable, calling the CAQ leader a “bad negotiator.”
However, the new Liberal leader, Pablo Rodriguez, has taken a more supportive approach. Rodriguez now views the agreement as a mutually beneficial deal that addresses crucial energy needs, stating it may not be perfect but is still a positive arrangement.
While Tanguay had initially expressed concerns over Hydro-Québec’s significant investment in three new hydroelectric projects in Labrador, Rodriguez emphasized the potential for improvements, acknowledging that agreements can always be refined.
Rodriguez and his team are closely monitoring the evolving debate in Newfoundland, particularly as critics and the province’s Conservative Party push for better terms. Recognizing the energy demands Quebec faces, Rodriguez stressed the importance of securing additional electricity supply through the agreement.
Following two years of negotiations, the Quebec government agreed to terminate the longstanding 1969 agreement, which Newfoundland deemed unjust due to low electricity purchase prices. The renegotiated terms will see Hydro-Québec pay higher royalties to Newfoundland, with plans for significant hydroelectric project developments valued at $25 billion.
With these projects, Quebec is set to gain access to an additional 7,200 MW of electricity, significantly boosting its energy supply. The revised agreement outlines an increase in royalties to be paid by Hydro-Québec to the Churchill Falls consortium until 2075.
Negotiations are ongoing, and a final agreement is expected to be reached by April 2026. The anticipated changes aim to address concerns raised in Newfoundland while ensuring a sustainable energy future for Quebec.
